Give Nigeria the wings to fly
By Tunde Animasaun
The post 2023 general election sociopolitical climate has become more interesting than the theatre of the absurd that preceded it. The media, print, audiovisual and most especially new media have turned to a veritable stage for this drama and consequently awash with so much negativity; some real, some contrived, most are blown out of proportion or intentionally slanted to give ‘the dog a bad name’ such that the undiscerning are beginning to think, ‘perhaps the end is here’, it is heartening therefore; and we are happy to amplify and encourage, recent healthy developments in the country’s international trade.
As we know, Nigeria is an import-dependent economy with more than 65 percent of its consumption sourced from outside its shores, mostly in the industrialised economies of the West, and lately from Asia. The nation found itself at this sorry impasse when the managers of the economy were unmindful of internal economic production. As recent as 2018 Nigeria, had a healthy balance of trade. This was so because the Obasanjo-led administration promoted and encouraged the use of ‘Made in Nigeria’ goods, invested in and promoted local agriculture and agro-allied businesses, courted and attracted foreign direct investment (FDI) and promoted trade with other West African nations as well as intra-African trade.
Rather than maintain or improve on the growth, succeeding administrations, especially during the latter half of President Goodluck Jonathan’s period paid little attention to the economic development indices favouring instead, the spending of accumulated wealth such that by 2015 when he was handing over the reins of the country to president Muhammadu Buhari, who incidentally was the first president from a party (APC) other than the party in government since 1999 (PDP), the nation had started recording a deficit balance of trade until it reached an all-time ow in 2019 apparently, worsened by the aftereffect of COVID 19.
But this narrative is fast changing!
It is therefore heartening to learn that the present administration has not only stemmed the negative Balance of Trade drift but as at the close of last year, recorded the highest Balance of Trade surplus since 2012.
Quoting the National Bureau of Statistics (NBS), an online specialized publication, Trading Economics, in a write-up entitled Nigeria’s Balance of Trade states, “Nigeria’s trade surplus ballooned to NGN 1,117 billion in December of 2022, from NGN 84 billion in the same month of the previous year. It was the largest monthly trade surplus since December 2012, as exports jumped 36.5% to a six-month high of NGN 2,353 billion, mainly boosted by shipments of manufactured products (487.5%), solid minerals (92.4%), agricultural goods (42.1%) and crude oil (35.1%). Conversely, imports tumbled 24.7% to a two-year low of NGN 1,236 billion, as reduced purchases of agricultural goods (-53.5%), manufactured products (-24.3%) and raw materials (-3.3%) outweighed increases in those of other oil products (+22.7%) and solid minerals (+5.7%). Considering the full year of 2022, the country’s trade balance shifted to a surplus of NGN 1,206 billion from a deficit of NGN 1,936 billion a year ago, as exports soared 41.7% to NGN 26,797 billion while imports rose at a slower 22.8% to NGN 25,591 billion.”
According to Nigeria Bureau of Statistics (NBS) report, the shipment of manufactured products increased by 487.5 percent, solid minerals increased by 92.4 percent, agricultural goods also increased by 42. 1 percent while crude oil’s margin of increase was 35.1 percent.
It is also worthy to note that imports ‘tumbled 24.7 percent to a two-year low of NGN 1,236 billion’ and this was achieved through a -53.5 percent in agricultural goods purchases, -24.3 percent reduction in manufactured goods purchases, and -3.3 percent reduction in raw materials purchases.
These are indications that the country’s economy is on the upswing. While we know that we are far from Uhuiru, we should not underplay this positive development but amplify it and call for replication in other sectors. Little stones like this, will definitely gather moss and such positive drops of water will give us the economically prosperous ocean we desire for our nation.
The in-coming administration has its job cut out as fares trade is concerned. The sustenance and increasing the margin of the surplus trade balance will be p[possible if the government stay the course and increase internal production. In this respect therefore, the government needs to improve infrastructure, improve power supply, provide the enabling environment for business to thrive and leverage the bilateral and international trade agreements to the country’s advantage.
Nigerians, young and old are very enterprising and far from being lazy. Their exploits both locally and internationally attest to this. All they need is a conducive environment to thrive.
Our call is for government to provide these and watch Nigeria and Nigerians soar!
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