Recent reports from the National Bureau of Statistics (NBS) reveal a significant drop in trade between Nigeria and India, resulting in India no longer being among Nigeria’s top five trading partners. For a considerable period, India held the number one position as Nigeria’s primary export destination.
According to NBS figures, trade between the two countries has been on a downward trend since the third quarter of 2022, with India slipping to the second and third positions in the trade rankings during Q3 and Q4 of 2023. Nigeria heavily relies on crude oil exports, and India was a major importer of this commodity. However, due to sanctions imposed by G-7 countries, led by the United States, India has turned to Russia, which offers cheaper rates for imported crude oil.
The sanctions on Russia are a consequence of its invasion of Ukraine. Meanwhile, a report titled “Commodity Price Indices and Terms of Trade Q1 2023” reveals that the Netherlands emerged as Nigeria’s top destination for goods exported in the first quarter of 2023. The value of exports to the Netherlands amounted to N837.6 billion, accounting for 12.90% of total exports during that period.
The largest exported commodity to the Netherlands was crude petroleum oils, worth N778.1 billion. This was followed by superior quality cocoa beans valued at N28.5 billion and other petroleum gases in a gaseous state, valued at N18.8 billion. On the import side, Nigeria primarily imported motor spirit and ordinary gas oil from the Netherlands, valued at N472 billion and N17.3 billion, respectively. Other lubricating oils meant to be mixed and precious metals were also imported, valued at N17.2 billion and N6.1 billion, respectively.
The second-largest export partner for Nigeria is the United States, accounting for goods valued at N579.3 billion, which represents 8.93% of total exports. Spain follows closely, with goods worth N488.1 billion, constituting 7.53% of total exports. The main export commodities to Spain were crude petroleum oils, natural gas, and urea. France ranks fourth, purchasing goods worth N487.3 billion or 7.51% of total exports. Indonesia roun
