High exchange rate forces Nigeria’s ToT down by 0.06% in Q2 2024

All commodity terms of trade (ToT) declined by 0.06 per cent points in the second quarter of 2024 (Q2’24), just as the value of imports increased by 0.15 per cent during the period.

The National Bureau of Statistics (NBS), disclosed this in its All Commodity Price Indices and ToT report for Q2’24. The report said the increase can be attributed to the changes in import prices of mineral products, “Articles of stone, plaster, cement, asbestos, mica, ceramic,” animal and vegetable fats and oils and other cleavage prod, “Prepared foodstuffs; and beverages, spirits and vinegar; tobacco.”

The NBS also noted that the All-Commodity Group Export Price Index increased on average by 0.09 per cent in Q2, 2024. The increase, according to the report, was majorly attributed to changes in the prices of “Mineral products.”, “Prepared foodstuffs; beverages, spirits and vinegar; tobacco” “Live animals; animal products”, and “Vegetable products.”

The report noted that the TOT Index on average decreased by 0.06 percentage points. It also identified Spain, the United States of America, France, India and The Netherlands as the major export destinations of Nigeria in Q2, 2024.

It would be recalled that Nigeria is going through an unstable forex regime, which has forced the value of the local currency, the naira to lose its value substantially, thus making imported goods very expensive while the country’s exports have become very cheap.