“Imports of manufactured goods amount to $6.7 billion in a six-month period, according to a report.”

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“According to data from the National Bureau of Statistics, Nigeria spent at least $6.7 billion on the importation of manufactured goods in the first six months of 2023. The value of manufactured goods traded during this period was N2.5 trillion.

Over recent years, manufacturers have reported that about 95% of their foreign exchange needs were sourced from the parallel market, where the exchange rate was around N750 per dollar. This implies that the country spent approximately $2.9 billion (N2.39 trillion) on the importation of manufactured goods in the first quarter.

In contrast, the export component of total trade for manufactured goods in the first quarter was only N131 billion, indicating that over N2.3 trillion (94.7%) of total trade was imports. Low export returns have been attributed to non-remittance of proceeds by many exporters through banks, resulting in total exports of manufactured goods amounting to only $285 million compared to the $6.7 billion spent on imports during the same period.

Further analysis showed that in the second quarter, the value of manufactured goods traded reached N3.2 trillion, with the export component accounting for 93% (N212 billion) of total trade, while imports were valued at N3 trillion. This implies that $3.8 billion was spent on imports of manufactured goods, while only $461 million was earned from exports of manufactured goods during the quarter.

In total, at least $6.7 billion was spent on imports of manufactured goods in the first half of the year, while only $746 million was earned through exports of manufactured goods. The major goods imported during this period included used vehicles with diesel or semi-diesel engines from the United States and the United Arab Emirates, machines for reception, conversion, and transmission of voice, images or data from China, and ‘Other medicament not elsewhere specified’ from India.

Manufacturers in Nigeria often struggle to compete with international counterparts due to high production costs, which ultimately drive up the prices of manufactured goods. The President of the Manufacturers Association of Nigeria, Francis Meshioye, called on the government to address these challenges and implement policies that stimulate manufacturing and boost exports.

Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, highlighted the need to reduce over-reliance on imports, promote import substitution, and leverage the country’s competitive advantages to boost exports and repatriate more foreign exchange earnings.”

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