Nigeria’s imports of manufactured products increased dramatically to N5.4 trillion in the first quarter of 2024 (Q1’24) from N2.40 trillion in the same period in 2023 (Q1’23), a year-over-year (YoY) increase of 139%.The depreciation of the Naira and the competitive disadvantage of locally produced goods resulting from the binding limitations facing the nation’s manufacturing industry have been blamed by stakeholders to the development.
The value of manufactured products imported into the nation has been rising quarterly from the start of 2023, according to data from the National Bureau of Statistics (NBS) Foreign Trade in products report for Q1’24. In Q1’23, for example, the value of imported manufactured goods was N2.40 trillion; this increased to N3.02 trillion in Q2’23, N3.96 trillion in Q3’23, N3.97 trillion in Q4’23, and N5.74 trillion in Q1’24.
In Q1 2024, imports were N1.60 trillion in January, N1.79 trillion in February, and N2.35 trillion in March, demonstrating the ongoing upward trend. The NBS reports that the value of manufactured products traded in Q1 of 24 was N6.01 trillion, with N5.74 trillion coming from imports, or 95.5 percent, and N268.70 billion coming from exports, or 4.5 percent. “Machines for reception, conversion and transmission of voice, images or data” were the most common manufactured items imported from China and the US, valued at N95.34 billion and N34.00 billion, respectively. “Heat exchange units” worth N91.29 billion that were imported from the US came next.
Additional items imported under this category included “Other Herbicides, Anti-Sprouting Products, and Plantar” from China (worth N97.89 billion) and “Motorcycles and cycles fitted with an auxiliary motor, petrol fuel, capacity >50<250cc, CKD” from India (worth N73.59 billion). Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), ascribed the situation to the nation’s manufacturers’ incapacity to compete with their overseas rivals because of circumstances that amounted to excessive production expenses.
“High production costs burden Nigerian manufacturers, which eventually drives up the prices of manufactured goods,” he said. Competitive advantages are the foundation for all of these. In order to maintain the floating exchange rate, the export base must be strong enough, but a strong economic foundation is first required.
“Why manufacturers are unable to export as anticipated should be investigated by the government.” The devaluation of the naira is the primary cause of the increase in import data, according to Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise (CPPE).
“I believe the depreciation of the naira is the reason. He said, “If you were importing $1 million worth of goods at a time when the exchange rate was N450 per dollar, you are now importing $1 million worth of goods at a rate of N1,500 per dollar.
