In the fourth quarter of 2023, Nigeria’s Terms of Trade (ToT) for all commodities had a decrease of 0.22 percentage points.
A decrease in the TOT shows a higher value of imports relative to exports. TOT measures the value of the nation’s trade with other nations. Comparing the Q4’23 performance to the 0.03 percent achieved in the third quarter, a greater rate of decline is indicated.
According to data on terms of trade and commodity price indices from the National Bureau of Statistics (NBS), the ToT has been declining since Q3’22, when it saw a decrease of 0.50 percentage points following an increase of 0.11 percentage points in Q2’22.
The All-Commodity Group Import Index for Q4, 2023, rose by 0.79 percentage points on average, according to the NBS. According to the statement, the price rise is primarily attributable to changes in import prices for mineral products, prepared foods, drinks, vinegar, and spirits, tobacco, textiles and textile-related items, paper making materials, and paper and paperboard articles.
However, it stated that in Q4, 2023, the All-Commodity Group Export Price Index rose by an average of 0.57 percentage points. Changes in the costs of prepared foods, beverages, alcohol, vinegar, and tobacco are mostly to blame for the increase.
Other items include live animals, animal products, automobiles, aeroplanes, and their component parts, as well as goods from the chemical and related industries. It was mentioned that in Q4, 2023, the Netherlands, India, Spain, Canada, and France were Nigeria’s top export destinations.
Nigeria has been dealing with a high exchange rate, which has dramatically raised the price of commodities imported while simultaneously lowering the cost of items exported.
