Nigeria’s total trade exports surged to $50.4 billion in 2024, driven by exchange rate depreciation and the elimination of fuel subsidies, which boosted the country’s trade balance.
Data from the National Bureau of Statistics (NBS) shows that Nigeria recorded a total trade volume of N138 trillion, the highest in the country’s history, representing a 106% increase compared to the previous year.
This translates to $89.9 billion in dollar terms, suggesting a total surge of 22.1% in 2024 when dollarized. This is a rebound from a 35% decline recorded the previous year when the government introduced a more market-driven exchange rate.
Nigeria’s 5-year high total trade figures were recorded in 2022 when total trade hit $113.8 billion at a time when the exchange rate closed the year at N460 officially.
However, the parallel market exchange rate closed at around N736/$1 which would have delivered a dollarized total trade of just $71.7 billion.
Nigeria transitioned to a more market-determined exchange rate in 2023, leading to a 50% depreciation of the naira that year. However, businesses appear to have adjusted to the new realities, as trade surged significantly in 2024.
A closer look at the data shows that total trade in 2024 stood at N138 trillion, up from N66.8 trillion in 2023. However, when adjusted for the exchange rate, total trade in dollar terms rose by 22.1% to $89.9 billion.
Naijaonpoint used the official closing exchange rates of N1,535/$1 for 2024 and N907/$1 for 2023 in its calculations and used official rates throughout for the prior years as well.
Crude oil exports remain dominant: Crude oil exports accounted for $36 billion (N55.2 trillion) in 2024, making up about 71% of total exports. This compares to $31 billion in 2023 and $45.8 billion in 2022.
Non-oil exports hit a four-year high: Non-oil exports reached $5.9 billion in 2024, the highest level since 2020 in both naira and dollar terms. Nigeria’s non-oil exports largely consist of agricultural and mineral products, with Africa being a key export destination.
Imports were also on the rise: In dollar terms, total imports reached $39 billion (N60.5 trillion) in 2024, based on the closing exchange rate of N1,535/$1. This compares to $34 billion in 2023 but remains significantly lower than the $55.6 billion recorded in 2022.
Nigeria’s import bill has declined over the past few years due to massive naira depreciation and limited access to foreign exchange.
While Nigeria’s foreign trade data paints a positive picture and boosts confidence in the economy, it is important to note that the figures exclude trade in services, which constitutes a significant portion of the country’s foreign exchange demand.