Nigeria’s Service Imports Surpass Exports, Records $33.7bn Deficit

Nigeria recorded trade in services deficit of $33.7bn in 2019, even as its merchandise exports fell by 14.1 per cent in the same year, according to the United Nations.

The UN, in its UN Comtrade International Statistics Yearbook 2020, said, “In 2019, the value of merchandise exports of Nigeria decreased substantially by 14.1 per cent to reach $53.6bn, while its merchandise imports increased substantially by 10.1 per cent to reach $47.4bn.

“The merchandise trade balance recorded a relatively small surplus of $6.2bn. The largest merchandise trade balance was with Eastern Asia at – $11.8bn.”

It said the country’s merchandise exports and imports were diversified amongst partners, adding that the top 15 partners accounted for 80 per cent or more of exports and 14 partners accounted for 80 per cent or more of imports.

“In 2019, the value of exports of services of Nigeria was $4.9bn, while its imports of services reached $38.7bn. There was a large trade in services deficit of $33.7bn,” it added.

In a related development, United Nations Centre for Trade and Development said in a new report that foreign direct investments into Nigeria and other sub-Saharan African countries rose by 22 per cent in the first quarter of 2021.

UNCTAD, in its Global Investment Trend Monitor, said the number of announced greenfield investment projects and international project finance deals to sub-Saharan Africa declined by 28 per cent to 207, and four per cent to 345 respectively.

It said FDI inflows into the region in Q1 2021 amounted to $18bn.

UNCTAD said, “Global FDI flows in the first half of 2021 reached an estimated $852bn, showing stronger than expected rebound momentum.

“Developed economies saw the biggest rise, with FDI reaching an estimated $424bn in 2021 H1 – more than three times the exceptionally low level in 2020. FDI flows in developing economies also increased significantly, totalling $427bn in 2021 H1.”