Raw materials importation maintain steady rise in Q4 2018

Importation of raw materials continued on a steady rise in the fourth quarter (Q4) of 2018, as plant and machinery importation drop according to the latest data from the National Bureau of Statistics (NBS).

Although availability of foreign exchange to local producers has aided importation of raw materials, the Manufacturers Association of Nigeria (MAN), has said it was improving its sourcing of raw materials locally.

According to the NBS, value of raw material imports grew 9.5% more than the value recorded in Q3, 2018 and 10.8% more than the value recorded in Q4 2017, while the value of imported manufactured goods decreased by 23.5% against the value recorded in Q3, 2018 but rose by 82.2% against its value in Q4, 2017.

Specifically, the value of total trade in raw materials stood at N350.3billion, or 4.1% of total trade in Q4, 2018.

During the quarter, raw materials export was valued at N40.7billion or 0.8% while imports accounted for N309.6 billion or 8.6% of the total import trade.

Raw materials exported during the quarter included Urea to Brazil worth N22.3billion and Leather (further prepared after tanning) worth N2.4 and N2.1billion exported to Italy and Spain respectively.

Among others, prepared binders for foundry moulds, valued at N1.6billion, were exported to Belgium.

In terms of imports, Cane sugar, meant for sugar refinery worth N52.0billion was imported from Brazil, while Preparations for infant use, put up for retail sale were imported mainly from China and United Kingdom at values of N10.0billion and N7.96billion respectively.

Mixtures of odoriferous substances of a kind used in the food or drink industry, worth N13.3billion and N3.6billion were also imported from Ireland and Swaziland respectively.

For manufactured goods, trade stood at N2.27 trillion, or 26.5% of total trade in Q4 2018.

In terms of imports, Nigeria imported Used Vehicles, with diesel or semi diesel engine, of cylinder capacity -2500cc mainly from the United States and Italy, which were worth N105.5 billion and N7.0billion respectively.

Furthermore, Motorcycles and cycles, were imported mainly from India and China at values of N66.5billion and N19.9 billion respectively.

Machines for the reception, conversion & transmission or regeneration of voice were imported from China and Sweden at values worth N35.6billion and N6.4billion.

Other parts of gas turbines (excluding of turbo-jets and turbo propellers) were imported mainly from the Netherlands at a value of N28.5billion while Machines for cleaning/sorting/grading seed, grain or dried vegetables worth N14.2billion were imported from China.

The export component was valued at N75.6 billion while imported manufactured goods stood at N2.2 trillion.

During the quarter, imported manufactured goods decreased by 23.5% over the level recorded in Q3, 2018 while export of manufactured products was 14.97% higher.

Among manufactured goods, Vessels and other floating structures for breaking up were exported to Namibia and Cameroon at values worth N9.98billion and N6.0 billion respectively.

Aluminum alloys (unwrought) were exported to Japan and India at values of N4.1billion and N1.0billion respectively while Dredgers worth N6.5billion was exported to the Netherlands.

Cigarettes containing tobacco worth N1.6 billion was exported to Niger Republic while Other machines and mechanical appliances having individual functions, was exported to the United Arab Emirates at a value of N4.98billion.