Nigeria, U.S. trade hits $1.36b in two months
• Petroleum products dominate transaction
Nigeria’s trade with the United States (U.S.) rose by 70.44 per cent from $799.93 million in January and to $1.36 billion in February, according to the latest U.S. Census Bureau data.
Data obtained from the Fact Sheet on Nigeria – U.S. Relations, showed that petroleum products dominated the U.S. import from Nigeria during the period in review. For instance, U.S. crude oil import from Nigeria stood at $936.65 million while gasoline import was $83.43 million.
Petroleum gases, other gaseous hydrocarbons totaled $16.94 million. The previous year, there were no imports in this category. Also, nitrogenous fertilisers totaled $16.66 million, but there were no imports in this category the previous year,.
According to the data, through February, 22 Customs districts posted trade surpluses with Nigeria while 13 had deficits. This compares with 25 surpluses and nine deficits for the same period a year ago.
The top surplus was with Houston at $132.63 million, while the largest deficit was with Philadelphia at $759.05 million. The top five U.S. exports to Nigeria, by value through February, were in the categories of Wheat; Gasoline, other fuels; Motor vehicles for transporting people; Corn; and Floating or submersible docks, platforms, respectively. They accounted for 54.27 per cent of total exports to Nigeria.
On the other hand, the value of the top five categories of U.S. imports from Nigeria – oil; gasoline, other fuels; Petroleum gases, other gaseous hydrocarbons; nitrogenous fertilisers; and cocoa beans, whole or broken, raw or roasted 1801, accounted for 98.64 percent of all inbound shipments.
Analysis of trade relations between Nigeria and the U.S. by the Department of State, put the U.S. as the largest foreign investor in Nigeria, with foreign direct investment concentrated largely in the petroleum/mining and wholesale trade sectors.
It added that U.S. exports to Nigeria include wheat, vehicles, machinery, kerosene, lubricating oils, jet fuel, civilian aircraft, and plastics. Nigeria is eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA). U.S. imports from Nigeria include crude oil, cocoa, cashew nuts, and animal feed.
“The United States and Nigeria have a bilateral trade and investment framework agreement. In January 2016, U.S. Secretary of Commerce Penny Pritzker, visited Nigeria on a fact-finding mission with senior U.S. business executives who comprised the Advisory Council on Doing Business in Africa. The Council’s visit underscored the broad U.S. commitment by both government and the private sector to advance economic engagement with Nigeria,” it added.
The total U.S. trade with the world increased to $592.18 billion, up 6.44 percent compared to the same period last year. United States exports climbed 6.68 per cent to $237.05 billion; imports climbed 6.28 percent to $355.13 billion.
The nation’s top five countries so far this year, by value, are China; Canada; Mexico; Japan and Germany. The overall trade deficit was $118.08 billion, up compared to the same period of last year when the deficit was $111.94 billion.