Nigeria's Agric Export Hits all Time High of N165.75 Billion in Q2, 2021| here are top items

 

Alt: = agric export items being loaded into the ship at the seaport"

The recent value also represents a 30% increase when compared to N127.18 billion worth of export recorded in the previous quarter (Q1 2021).

Nigeria exported agro-food items worth N165.27 billion in the second quarter of 2021, representing a 112% increase compared to N78.03 billion recorded in the corresponding period of 2020. This is also the highest on record, according to data from from the National Bureau of Statistics (NBS).

The recent value also represents a 30% increase when compared to N127.18 billion worth of export recorded in the previous quarter (Q1 2021).

The report had also highlighted that Nigeria continued with a foreign trade deficit of N1.87 trillion having recorded an import value of N6.95 trillion as against an export value of N5.08 trillion.

Meanwhile, Nigeria’s agric imports also increased by 56.9% year-on-year in Q2 2021 to N652.08 billion, indicating a trade deficit of N486.8 billion, quite huge for a country blessed with vast land and an agricultural sector that employs a huge chunk of its labour force.

Alt: = "table showing Nigeria's agric export and import from 2019 to 2021"

Nigeria continues to expand its ability to earn foreign returns from agricultural export, especially during a time when oil revenue is not as robust as it used to be, due to the OPEC production quota and oscillating crude oil prices.

However, the local production is still not enough for local consumption, hence the need to export food items from other countries, which in turn affects Nigeria’s balance of trade and by extension the exchange rate.

A brief historic check by Nairametrics, reveals that Nigeria has recorded a continuous agric foreign trade deficit in the past 5 and half years, with the highest being N503 billion recorded in Q1 2021 followed by the recent N486.8 billion recorded in Q2 2021. 

Alt: = "chat showing Nigeria's agric export from 2016 to 2021"

Meanwhile, Nigeria’s GDP report shows that the agricultural sector has grown consistently positively in recent years, with the latest growth at 1.3% in Q2 2021. The sector is valued at N16.67 trillion in real terms, representing about 23.5% of the Nigerian economy.

It is imperative to track the items that fetch the country its foreign earnings as a result of its impact on the Nigerian exchange rate, hence these are the top agricultural products exported to other country.

Top Agric Export

  • Cocoa – N63.18 billion
  • Cashew nuts – N42.94 billion
  • Sesamum seeds – N21.64 billion
  • Coconut – N13.02 billion
  • Ginger – N3.75 billion
  • Frozen sea foods – N3.46 billion
  • Brasil nuts in shell – N3.28 billion
  • Natural cocoa butter – N2.44 billion
  • Sesame oil and its fraction – N1.29 billion
  • Palm nuts and kernels – N1.08 billion


Takeaway 

The growth in agric export indicates an increase in foreign earnings, which would help boost the country’s foreign reserve as well as relieve the pressure on the exchange rate. However, despite the increase in foreign via agric export, Nigeria still records negative trade balance, as other sector of the economy did not record increase in export. The Nigerian naira is still under huge pressure as search for scarce forex in order to import items that would have been produced locally continues.

Read also: Impacts of Globalization on Agricultural Marketing


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