In the second quarter (Q2) of 2020, Spain replaced India as Nigeria’s most important export destination. The European nation received 14% (N 310.7 billion) of total Nigerian export trade in Q2, compared to 9.87% (N 402.93 billion) in Q1 2020.
It was followed by the Netherlands with 10.98% (N 243.6 billion), compared to 9.72% in Q1 2020. While China received 9.93% (N 220.35 billion), India received 8.81% (N 195.5 billion), compared to 15.61% (N 637.53 billion) in Q1 2020. South Africa received 7.76% (N 172.19 billion) in the same quarter.
This is according to the latest Foreign Trade Report, released Wednesday by the National Bureau of Statistics.
The report also stated that crude oil exports accounted for 70% (N 1.55 trillion) of the total value of exports in the second quarter of 2020. However, crude oil exports in the second quarter of 2020 decreased by 47.2% in value terms compared to the first quarter of 2020 and by 60.5% year-on-year.
On Tuesday, when the NBS revealed that Nigeria’s total foreign trade (imports and exports) in Q2 2020 was down 27.46% year-on-year compared to N 8.61 trillion in the corresponding quarter (Q2 2019). This is according to the latest Foreign Trade Report published by the National Bureau of Statistics.
According to the report, Nigeria’s total exports plummeted 51.7% to N 2.22 trillion during the quarter, a significant drop from N 4.59 trillion in Q2 2019 and N 4.08 trillion in the previous quarter.
The report also revealed that Nigeria’s total foreign trade was down 27.3% compared to the N 8.59 trillion in the previous quarter (Q1 2020). This decline reflects the disruption caused by the COVID 19 pandemic.
As expected, Nigeria’s crude oil revenues from India, the third-largest crude oil importer in the world, declined after the country recorded its lowest oil imports in 10 years in June 2020.
According to Reuters, India’s oil imports declined in June as its refineries reduced demand due to maintenance and shutdowns.
India reportedly imported 3.2 million barrels per day in June, the lowest level since October 2011, and a decline of 0.4% from May and 28.5% from the same period in 2019.
The report also indicates that July was no better due to weak demand resulting from the impact of the coronavirus pandemic.
Nigeria is India’s 13th largest importing country behind other crude oil exporters such as the US, Iraq, Saudi Arabia, and the United Arab Emirates. In contrast, India is Nigeria’s largest export destination.
India replaced the USA as Nigeria’s largest export destination for crude oil as demand increased in the world’s second-most populous country.
India is one of the fastest-growing economies in the world as industrialization has increased its appetite for crude oil. However, the effects of COVID-19 have brought economic growth in India to a standstill. The country now ranks alongside the United States and Brazil as the country with the most cases of COVID-19, with over 3.84 million confirmed cases and 67,486 reported deaths.