Business
Nigeria’s Trade Deficit Widens

Nigeria’s trade deficit widens to N1.8trn in three months
Weak demand for Nigerian products increased the trade balance deficit to N1.87 trillion in the second quarter of 2021.
The National Bureau of Statistics (NBS) stated this in its “Foreign Trade Statistics – Q2 2021 obtained on Monday by Ripples Nigeria.
According to the report, Nigeria spent N6.95 trillion on imports but recorded exports worth N5.08 trillion.
What this means is that out of the N12.03 trillion trade merchandise recorded between April, May, and June, imports exceeded exports by N1.87trillion, which is the deficit.
NBS data however showed that trade recorded in the Q2 was 23.28% more than last quarter Q1 2021 and 88.71% more than the same quarter in 2020.
“During quarter 2, 2021 the total merchandise trade stood at N12,02 trillion representing 23.28% increase over the value (N9,757.87billion) recorded in Q1,2021 and 88.71% increase compared to Q2,2020,” NBS said.
Furthermore, NBS data shows that non-oil exports of N462.85 billion was recorded in the period under review. While crude oil/total exports constituted 80.29% of the transaction 42.22% was export/total trade.
“The export component of this trade was valued at N5.07 billion or 42.22% , the import was valued at N6,950.21billion or 57.78% while the trade balance stood at a deficit of N1,870.77billion.Crude oil which is the major component of export trade stood at N4,078.20 billion or 80.29% of total export. This further shows a sharp increase of 111.32% in Crude oil value in Q2, 2021 compared to (N1, 929.83billion) recorded in Q1,2021 while the Non-crude oil export recorded N1001.23 billion or 19.71% of total export trade during Q2,2021,” the report added.
Nigeria’s Trade Deficit Widens
For product classification, NBS said “total value of trade in agricultural goods in Q2 stood at N817.35 billion, with the export component totalling N165.27 billion while the import was valued at N652.08 billion.
“Topmost of these exported agricultural products were good fermented Nigerian Cocoa beans exported mainly to Netherlands (N16.48 billion), Malaysia (N9.32 billion) and the United States of America (N8.41 billion).”
For Solid Minerals, trade stood at N63.68 billion, with the export component at N14.93 billion while import was valued at N48.75 billion, with the top exported mineral products being cement exported to Niger Republic and Togo in values worth N3.12 billion and N2.32 billion.
For the manufactured goods sector, the value of trade stood at N4.51 trillion representing 37.50 per cent of total trade. The export component accounted for N211.67 billion while the import component was valued at N4.29 trillion.
“The products that drove up manufactured products were vessels and other floating structures for breaking up, which was exported to Cameroon in the value worth N71.90 billion.
“Vessels and other floating structures for breaking up were also exported to Spain and Equatorial Guinea in values worth N18.34 billion and N6.26 billion.
“In terms of manufactured imports, used vehicles were mainly imported from the United States and Italy in values worth N33.78 billion and N5.74 billion,” they said.
While in terms of Raw materials total trade stood at N904.51 billion, imports at N840.50 billion while the export component stood at N64.01 billion.
Asia is the leading partner with a record of N3.46 trillion or 49.92% with Europe with N2.30 trillion or 33.16% closely following.
America with N869.1 billion, Africa, N248.8 billion and Oceania, 58.1 billion. ECOWAS countries accounted for N24.2 billion.
On goods imported during the quarter, China led with a value of N2.078 trillion, followed by India with N570.01 billion, Netherlands with N557.16 billion, and the United States with N526.92 billion.
“In terms of regional trade, Nigeria exported most products to Asia (N1.84 trillion), Europe (N1.82 trillion), America (N806.81 billion) and Africa (N584.11 billion) while Oceania totalled N23.28 billion with goods worth N363.3 billion exported to ECOWAS.
“Analysis by country export trade showed that most goods were exported to India (N949.05 billion or), Spain (N524.49 billion), Canada (N355.60 billion) and Netherlands (N298.29 billion) and United States N256.63 billion,” NBS stated.
Business
NNPC refineries may never work again – Dangote

The President of Dangote Group, Alhaji Aliko Dangote, has stated that Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna may never function properly again, despite the reported $18 billion spent on their rehabilitation.
Speaking while hosting members of Global CEO Africa at the Dangote Petroleum Refinery, Dangote revealed that his decision to construct the 650,000-barrel-per-day facility followed the late President Umar Musa Yar’Adua’s administration’s refusal to sell the refineries to him.
According to Dangote, he and other investors had acquired the refineries in January 2007 but were compelled to return them to government ownership after a change in administration. He observed that despite significant subsequent investment, the refineries have remained inoperative.
“The refineries we bought before, which were owned by Nigeria, were producing about 22 per cent of PMS. We bought them in January 2007 but had to return them due to a change in government. The managing director at that time convinced Yar’Adua that the refineries would work,” he said.
“As of today, they have spent about $18 billion on those refineries, and they are still not working. I doubt very much if they will ever work,” he added.
Dangote likened the rehabilitation efforts to attempting to upgrade a 40-year-old car with modern technology, suggesting that even a new engine would not be compatible with the outdated framework.
Former President Olusegun Obasanjo had earlier expressed similar misgivings. In a previous interview, he asserted that the NNPC knew it was incapable of effectively operating the refineries but actively blocked private sector involvement.
Obasanjo disclosed that Dangote and other investors had paid $750 million to acquire the refineries, only for the deal to be reversed by the Yar’Adua administration.
“I told Yar’Adua the refineries would not work. I said, ‘NNPC cannot do it.’ He said, ‘NNPC said they can.’ I told him, ‘When you want to sell them again, you won’t find anyone willing to pay even $200 million as scrap.’ And that is where we are today,” Obasanjo said.
He alleged that the failure to privatise the refineries was fuelled by entrenched corruption within the NNPC, and insisted that those responsible should be held accountable.
Obasanjo further claimed that over $2 billion had been spent on the refineries in recent years, with no tangible results.
“If anyone says the refineries are working, why are they now relying on Aliko Dangote? He will make his refinery work and deliver,” he said.
Business
Nigerian stock market hits historic N1.806trn gains

The Nigerian Stock Exchange, under Nigerian Exchange Group, NGX, Limited, recorded a historic milestone as investors gained N1.806 trillion in a single day.
This development follows a significant rise in the All-Share Index, ASI, which surged by 2,457.13 points, or 2.01 per cent, to close at 124,446.80, crossing the 124,000 mark for the first time, from its previous close of 121,989.67.
The market’s positive performance has been attributed to growing investor confidence in Nigeria’s equities market, bolstered by improved liquidity conditions and ongoing economic reforms.
Market capitalisation similarly rose by 2.35 per cent to settle at N78.726 trillion on Thursday, up from N76.970 trillion recorded on Wednesday.
Consequently, market breadth closed strongly positive, with 70 gainers and only 10 losers.
On the gainers’ table, FTN Cocoa rose by 10 per cent to end the session at N6.82, while UPDC also gained 10 per cent, closing at N4.62 per share.
United Bank for Africa, UBA, soared by 10 per cent to settle at N39.60, while Consolidated Hallmark Holdings similarly rose by 10 per cent to close at N3.30 per share.
Haldane McCall also gained 10 per cent, ending the session at N4.73 per share.
Conversely, Neimeth International Pharmaceutical declined by 9.91 per cent, finishing at N9, while Legend Internet shed 9.88 per cent to settle at N7.21 per share.
Industrial and Medical Gases dropped by 7.36 per cent to close at N34, and Cadbury Nigeria fell by 6.22 per cent, ending the day at N55 per share.
Similarly, Livestock Feeds lost 5.67 per cent, closing at N9.15 per share.
In terms of market activity, 1.3 billion shares valued at N27.73 billion were exchanged across 27,875 transactions.
This compares to 888.70 million shares worth N15.609 billion traded in 24,303 transactions on Wednesday.
Leading the activity chart was Access Corporation, with 174.22 million shares valued at N3.99 billion.
AIICO Insurance followed with 81.96 million shares worth N165 million, while Ja Paul Gold recorded 74.01 million shares traded, valued at N245.2 million.
UBA exchanged 64.51 million shares worth N2.52 billion, and First City Monument Bank traded 63.3 million shares valued at N585.75 million.
Business
NAFDAC uncovers expired chemicals, additives, seals warehouses

The National Agency for Food and Drug Administration and Control (NAFDAC) has uncovered a massive illegal operation involving the sale of fake chemicals, expired food flavours, unauthorised fertilisers, and repackaged pharmaceutical raw materials in the Alapere area of Ketu, Lagos.
The agency, in a statement, disclosed that the operation led to the arrest of several suspects and the sealing of three warehouses filled with dangerous substances.
NAFDAC Director of Investigation and Enforcement, Martins Iluyomade, told journalists that the raid followed credible intelligence about a criminal network engaged in large-scale food and chemical counterfeiting.
Iluyomade described the agency’s action as its campaign carried out to protect the health of Nigerians, stressing that individuals posing as legitimate business operators while engaging in activities that seriously endanger public health.
According to him, the offence was the sale and repackaging of expired chemicals, some of which were dangerously redirected for use in food and drug production.
He explained that several controlled substances and high-risk materials, including fertilisers requiring special clearance from the National Security Adviser, were found stocked without any authorisation.
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