Nigeria’s foreign trade performance in the first quarter of 2025 showcased a robust trade surplus of N5.17 trillion, a significant 51.07% surge compared to the N3.42 trillion recorded in the preceding quarter. This positive trade balance underscores the strength of Nigeria’s export sector, even amidst escalating import costs and prevailing global economic uncertainties. The overall trade volume for Q1 2025 reached N36.02 trillion, reflecting a 6.19% year-on-year increase from the corresponding period in 2024. This expansion in trade activity signals a vibrant economic interplay between Nigeria and its global trading partners.
Drilling down into the specifics, Nigeria’s export earnings for Q1 2025 amounted to N20.60 trillion, registering a 7.42% year-on-year growth. While crude oil continues to be the dominant export commodity, contributing N12.96 trillion and accounting for 62.89% of total exports, its revenue experienced a decline of 16.35% compared to Q1 2024. This dip in oil revenue, however, was effectively offset by the impressive growth of non-oil exports, demonstrating the burgeoning diversification of Nigeria’s export basket. A noteworthy highlight is the agricultural sector, which witnessed a remarkable 64.65% surge in exports, reaching N1.70 trillion compared to N1.04 trillion in the same period of the previous year. Products like cocoa beans, cashew nuts, and sesame seeds emerged as significant contributors to this agricultural export boom, with Europe and Asia serving as the primary export destinations.
On the import side, Nigeria imported goods worth N15.43 trillion in Q1 2025, indicating a 4.59% year-on-year increase but a 7.02% decline compared to the previous quarter. This fluctuation suggests a potential moderation in import demand, possibly influenced by economic factors and policy adjustments. China maintained its position as Nigeria’s largest import partner, contributing 30.19% of total imports, followed by India and the United States. Major import categories included petroleum products, machinery, and raw materials, highlighting Nigeria’s reliance on these essential inputs for industrial production and domestic consumption. Notably, the agricultural import sector also experienced growth, with imports increasing by 12.52% to N1.04 trillion, indicating a strong domestic demand for food products and agricultural inputs.
Delving into regional trade dynamics, Nigeria’s trade relations with African countries continued to evolve positively, with exports to the continent reaching N1.85 trillion. Key export destinations on the continent included South Africa, Ivory Coast, Senegal, Togo, and Ghana, with petroleum products constituting the bulk of these exports. This underscores Nigeria’s role as a significant energy supplier within the African region. Conversely, imports from African countries remained relatively moderate at N766.82 billion, primarily comprising petroleum products sourced from Angola and South Africa, highlighting the ongoing energy exchange within the African continent.
Despite the enduring dominance of crude oil in Nigeria’s export profile, the country’s efforts towards export diversification are yielding promising results. The growth trajectory of agricultural and manufactured goods exports, with manufactured goods exports rising by 9.58% to N294.43 billion, including products like unwrought aluminum alloys, dredgers, and cathodes, signals a positive shift towards a more diversified and resilient export portfolio. While the contribution of these non-oil exports remains relatively small compared to crude oil, their steady growth signifies a gradual reduction in Nigeria’s dependence on the volatile oil market and a move towards a more balanced and sustainable economic structure.
In conclusion, Nigeria’s Q1 2025 foreign trade performance exhibited a positive trade balance driven by robust export performance, particularly in the non-oil sector. While crude oil still holds a significant share of the export market, the notable growth in agricultural and manufactured goods exports demonstrates the ongoing diversification of Nigeria’s international trade portfolio. This shift, coupled with rising intra-African trade, positions Nigeria for greater economic resilience and sustained growth in the global market. The fluctuations in import levels warrant further analysis to understand the underlying economic factors and potential policy implications. Continued focus on strengthening non-oil sectors and fostering regional trade partnerships will be crucial for Nigeria’s long-term economic prosperity.
