Govt fails to curb Nige­ri­ans’ ap­petite

Business a.m. - - FRONT PAGE - Nse An­thony-Uko in Abuja

THE NIGE­RIAN GOV­ERN­MENT is fail­ing in its cam­paign to curb decades long ap­petite of cit­i­zens for for­eign made goods, ac­cord­ing to new fig­ures show­ing im­por­ta­tion of man­u­fac­tured goods into the coun­try has grown in the nine months to Septem­ber 2018.

THE NIGE­RIAN GOV­ERN­MENT is NEWS fail­ing in its cam­paign to curb decades long ap­petite of cit­i­zens for for­eign made goods, ac­cord­ing to new fig­ures show­ing im­por­ta­tion of man­u­fac­tured goods into the coun­try has grown in the nine months to Septem­ber 2018.

The gov­ern­ment, through the Cen­tral Bank of Nige­ria (CBN) has been lead­ing a charge to con­trol the for­eign ex­change ex­pended on what has be­come known as the in­fa­mous 41-items banned from ac­cess­ing for­eign ex­change through the of­fi­cial win­dows pro­vided by the banker of last re­sort in the last three and half years. That list was re­cently risen to 42 with the ad­di­tion of fer­til­izer. Pres­i­dent Muham­madu Buhari has been bullish to whip Nige­ri­ans to line in his quest to shore up the value of the naira by re­duc­ing pres­sure on the coun­try’s for­eign re­serves but it would now ap­pear that he has been los­ing the hearts and minds war, as well as the war to shape how Nige­ri­ans spend their money on them­selves.

Value of for­eign man­u­fac­tured goods im­ported into Nige­ria hit N4.98 tril­lion in the nine months from Jan­uary to Septem­ber 2018, in­di­cat­ing an in­crease of 45.2 per­cent year on year over the N3.43 tril­lion recorded by Septem­ber 2017, show­ing Nige­ri­ans’ ris­ing ap­petite for im­ported goods com­pared to lo­cally made goods. Fin­ished goods im­ports as at Septem­ber 2018 also sur­passed the 2017 full year value which stood at N4.64 tril­lion by 7.3 per cent data from the Na­tional Bureau of Sta­tis­tics (NBS) has shown.

Nige­ria has re­mained largely dis­ad­van­taged in in­ter­na­tional trade in­volv­ing man­u­fac­tured goods across the world with its im­port bills at N4.98 tril­lion as at Septem­ber 2018, far sur­pass­ing the ex­port bill which stood at N570 bil­lion in the same pe­riod.

in­di­cates that fin­ished goods ac­counted for 62.8 per cent of to­tal im­port value N9.09 tril­lion for the nine-month pe­riod, com­pared to 48.5 per cent of the to­tal N9.56 tril­lion in 2017.

Nev­er­the­less, value of Nige­ria’s fin­ished goods ex­ports more than dou­bled to N570 bil­lion be­tween Jan­uary and Septem­ber 2018 com­pared N176.6 bil­lion be­tween Jan­uary and Septem­ber and N232.05 bil­lion for the full year 2017, in­di­cat­ing an in­crease of 222.6 per cent year of year and 145.7 per cent over the full year fig­ure.

Ac­cord­ing to the data from NBS, Nige­ria’s lead­ing im­port in the third quar­ter of 2018 was Float­ing or sub­mersible drilling or pro­duc­tion plat­forms worth N1.16 tril­lion from South Ko­rea.

Used Ve­hi­cles were im­ported mainly from United States and Brazil, in val­ues worth N45.3 bil­lion and N12.0 bil­lion.

Other in­stru­ments and ap­pa­ra­tus, for med­i­cal, sur­gi­cal sciences were im­ported from Netherlands in the value N36.7bil­lion.

Mo­tor­cy­cles and cy­cles were im­ported from In­dia and China in val­ues worth N29.2 bil­lion and N11.97 bil­lion re­spec­tively.

Nige­ria ex­ported ves­sels and other float­ing struc­tures for break­ing up val­ued at N9.0 bil­lion, N2.9 bil­lion and N1.3bil­lion to Camer­oun, Congo and Hong Kong re­spec­tively.

Nige­ria also ex­ported Air­planes and other air­craft of an un­laden weight but not ex­ceed 15000kg val­ued at N5.6bil­lion to Ghana.

Alu­minum al­loys, un­wrought worth N4.2bil­lion was ex­ported to Ja­pan while Poly­eth­yl­ene hav­ing a spe­cific grav­ity >=0.94, in pri­mary forms worth N2.4 bil­lion was ex­ported to China

Des­ti­na­tion

Nige­ria’s im­ported goods in the third quar­ter of 2018 were ma­jorly from Asia and Europe. Asia dom­i­nated as im­port des­ti­na­tion into Nige­ria ac­count­ing for 52.4 per cent of Nige­ria’s to­tal im­ports in Q3 2018. Europe ac­counted for 35.2 per cent, while Amer­ica was re­spon­si­ble for 8.4 per cent of Nige­ria’s to­tal im­ports in the pe­riod. Africa and Ocea­nia ac­counted for 3.3 per cent and 0.6 per cent of im­ports re­spec­tively.

South Ko­rea dis­placed China as Nige­ria’s top im­port des­ti­na­tion in the third quar­ter of 2018. To­tal value goods im­ported from South Ko­rea stood at N1.2 tril­lion, which was 29.1 per cent of Nige­ria’s to­tal im­port in Q2 2018.

Other top five im­port des­ti­na­tions for Nige­ria in the third quar­ter were China which ac­counted for N591.36 bil­lion or 14.17 per cent.

Netherlands ex­ported N483.2 bil­lion or 11.58 per cent worth of goods to Nige­ria while Bel­gium’s to­tal ex­port to Nige­ria was N291.6 bil­lion or 6.99 per cent. The USA com­pleted the top five im­port des­ti­na­tions for Nige­ria dur­ing the pe­riod with a value of N224.2 bil­lion or 5.37 per cent share of her to­tal im­ports in Q3 2018.

M&A RAVE OF THE MO­MENT: Her­bert Wigwe (L), group manag­ing di­rec­tor/CEO, Ac­cess Bank and Uzoma Dozie, chief ex­ec­u­tive of­fi­cer, Di­a­mond Bank shake hands as they get set to be­gin the tie-up process of both banks fol­low­ing Ac­cess Bank’s ac­cepted bid to ac­quire the lat­ter.

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