Nigeria's Terms of Trade Rise 2.3% in Q1'19

26 June 2019

THE National Bureau of Statistics, NBS, yesterday said the nations' Terms of Trade (ToT) rose by 2.3 percent in the first quarter of 2019 (Q1'19).

ToT is the ratio of export prices to import prices. It reflects as the amount of import goods an economy can purchase per unit of export goods. The rise recorded in Q1'19 means a rise in the value of Nigeria's export compared to the imports.

According to the Bureau, the groups that contributed to the development were products of the chemical and allied industries, animal products, vegetable fats and oil products and wood products.

The NBS disclosed this in its Commodity Price Indices and ToT Q1'19 report.

The report stated: "The all commodity group terms of trade stood at 98.92 percent in January, 101.71 percent in February and 101.17 percent in March. This represents an increase of 2.82 percent in February (compared to January), and a decrease of 0.5 percent in March (compared to February).

"On the average, the terms of trade increased by 2.30 percent during the quarter. This also indicates favourable terms of trade.

"The rise in the terms of trade was driven by Animal and Vegetable fats and oil (10.7 percent), wood and articles of wood, wood charcoal (8.5 percent), products of the chemical and allied industries (7.8 percent)."

On import index for the quarter, the report stated: "In Q1'19, the all commodity group import index, on average, decreased by 0.46 percent, following a 0.29 percent rise in February and a drop of 0.74 percent in March."

On export index, it stated: "The all commodity group export index, on average, increased by 1.85 percent between January and March 2019. It edged down (-1.27 percent) in March after rising 3.12 percent in February.

"The February increase, compared to January, was driven by animal and vegetable fats and oils (4.77 percent), Products of the chemical and Allied industries (3.46 percent) and Mineral products (3.29 percent) but was offset by prepared foodstuffs, beverages, spirits (-5.9 percent), live animals; animal products (-7.12 percent) and Footwear, headgear, umbrellas (-9.25 percent)."

It further noted: "During the quarter, the all region terms of trade registered 98.9 percent in January, 101.71 percent in February and 101.17 percent in March. These indices show an increase of 2.82 percent in February compared with January, and a decrease of 0.52 percent in March against February, leading to an aggregate increase in the index by 2.30 percent. The rise in the index was a result of stronger trade with Asia and the Americas during the quarter."

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