Data made available by the National
Bureau of Statistics reveals that in the first quarter of 2012 (Q1 12),
Nigeria’s bulk import of just fifteen items cost N389 billion (that is
equivalent to 74.68% of the funds shared by the three tires of
government in July).
In the second quarter (Q2 12), the
figures which may be officially released later this week are not better
than Q1 12 data. As a matter of fact most of the commodities in the Q1
12 are in the Q2 12 major import list.
Importation of food items like soya
beans and sugar cane, in solid form, cost Nigeria N43.7billion and N36.8
billion respectively while frozen mackerel (fish) cost Nigeria N32.2
billion in Q1 12 (this is just official data which does not account for
all items brought into the country).
The single highest consumer of forex in
the first quarter was used passenger motor vehicles. Nigeria spent N63
billion on importing used cars. While imported motorcycles and tricycles
(Keke na pep etc) brought in by established manufacturers cost us
N19.74 billion. Over all, the data on import in Q1 12 underscores the
fact that the growth in local manufacturing of some food items and
transportation gear has been outstripped by demand for them hence the
need to bridge the gap with import.
Imports in the category of goods already
stated still accounted for a significant chunk of Nigeria’s external
purchase. If Nigeria spends so much to get these commodities why are
Nigerian businessmen not taking advantage of the economies of scale
which the country possess to produce them locally, especially the agric
based ones.
Though Q2 12 data have not been
officially released, some sources have strongly indicated that used
vehicles, some other transport paraphernalia and some food items again
gulped most of Nigeria’s forex.
A disaggregation of imports by country
last year shows that, imports from Asian countries (excluding Japan)
were dominant source and accounted for 39.6 per cent of Nigeria’s total
import. China ranked highest in the group, with a share of 20.0 per
cent of the total.
Imports from industrialized countries
accounted for 35.5 per cent with the USA topping the list with a share
of 11.4 per cent. The share of imports from African countries was a mere
2.1 per cent in 2011; casting doubt on the progress Nigeria has made at
regional integration.
But last year, Nigeria made some gains
in closing the gap between what it pays for import and what it is paid
for export. According to the Central Bank, in 2011, the overall Balance
of Payments position swung from a deficit in 2010 to a surplus of N47.1
billion, but the gains were primarily because of the performance of
export trade in oil (the price of Nigeria’s reference crude, Bonny
Light, grew on an annualized basis from an average of US$81.6 per barrel
in 2010 to US$113.8 in 2011 an increase of 39.5 per cent.)
There are a few companies in Nigeria,
both indigenous and foreign, that have taken advantage of the
opportunities and have not only produced for local consumption but for
export. Olam Nigeria Limited was ranked first last year at the company
raked in $444.0 million, largely through the export of sesame seeds and
cocoa beans to Japan and Europe.
Bolawole Enterprises Nigeria Limited
earned $146 million from export of cocoa beans to the Netherlands also;
Unique Leather Finishing Company raked in US$124.1 million through
export of leather to Italy.
While Imoniyame Holdings Limited and
Saro Agro Allied Limited which ranked fourth and fifth with US$97.8
million US$79.5 million, respectively did so on account of exporter of
Nigerian Processed Crumb Rubber and cocoa which they specialized in
exporting.
The intelligence in the data is of two
folds. First, there is a large market of soya beans and sugar cane which
is yet to be filled. Nigerian businesses can take advantage either
through investing in growing these products or processing for domestic
consumption, in the long run, export may be a forex earner too.
Secondly, it is clear that there are
some commodities which have export capability in Nigeria. Production may
not have export as its primary target, so businesses who are discerning
can galvanize their processes to buy in bulk for export.
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