In 2021, the total value of imported used vehicles and motorcycles in Nigeria experienced a decline according to data from the National Bureau of Statistics (NBS).
While the value of used vehicles in 2021 stood at N418.34 billion, it was N593billion in 2020. That of motorcycles was N367.39 billion in 2021 and N415.87billion the previous year.
However, this is as the value of manufactured goods trade deficit grew to N27.33trillion in two years, according to the data agency.
Its ‘Foreign Trade in Goods Statistics’ for the four quarters of 2020 and 2021, showed that manufacturing imports rose from N12.71trillion in 2020 to N16.73trillion in 2021, while exports rose from N960.7billion in 2020 to N1.15trillion in 2021.
Cumulative imports for both years under review totaled N29.44trillion, making up 93.30 per cent of foreign manufactured trade. Exports for both years totalled N2.11trillion, making up 6.69 per cent of the same trade.
Total manufactured goods for both years grew to N31.55trillion. According to NBS, used vehicles, motorcycles, and machines for the reception, conversion and transmission or regeneration of voice, images drove import.
Import of machines for the reception, conversion and transmission or regeneration of voice and images was put N366.83billion.
Nigeria imported used vehicles from the United States, Italy, Belgium, Netherlands, Brazil, and Canada. It imported motorcycles from India and China. It also imported machines for the reception, conversion and transmission or regeneration of voice, images from China, Hong-Kong, and Sweden.
According to the statistics body of the country, vessels and other floating structures, aluminum alloys, and floating or submersible drilling platforms formed the major component of exported manufactured goods.
NBS said Nigeria exported manufactured goods to Ghana, Cameroon, China, and Japan majorly in 2021. In its ‘Nigeria Selected Issues,’ report released in February 2022, International Monetary Fund (IMF) disclosed that Nigeria’s high economic dependence on oil was impeding its ability to develop its manufacturing sector.
Adding, it said some components of what Nigeria exports as manufactured trade items could be classified as imports since they were once imported into the nation for use. “In turn, high economic dependence on oil impedes diversification through overshadowing, among others, the competitiveness of other tradable sectors, particularly manufacturing.
“Caution is warranted not to interpret rising machinery exports as an expansion of the manufacturing sector in Nigeria, as helicopters, vessels, and other floating structures are foreign manufactured goods that were re-exported from Nigeria (according to data from the NBS trade report for 2021Q1).
“Re-exports are goods of foreign origin which entered Nigeria to be consumed but are subsequently sold to another country without any substantial transformation. In other words, they are exported in the same condition as imported. In 2021Q1, they represented 83.5 per cent of the total manufactured goods exported from the country’’, NBS said.