Nigeria recorded a sharp improvement in its foreign trade position in the first quarter of 2026 as exports increased and imports fell significantly.
This helped it to post a 341 per cent merchandise trade surplus of ₦7.55 trillion, according to the report by the National Bureau of Statistics (NBS).
In its Foreign Trade in Goods Statistics (Q1 2026) report released on Monday, NBS stated that total merchandise trade stood at ₦34.79 trillion during the period.
Exports accounted for ₦21.17 trillion, representing 60.85 per cent of total trade, while imports amounted to ₦13.62 trillion, or 39.15 per cent.
The positive trade balance of ₦7.55 trillion marked a dramatic 340.88 per cent increase compared with the preceding quarter, reflecting stronger export earnings and a steep decline in import bills.
A major driver of the improved trade position was the sharp contraction in petroleum product imports, according to checks by Pinnacle Daily.
The value of imported other oil products fell to ₦748.10 billion in the first quarter, representing an 85.05 per cent decline from the corresponding period of 2025 and an 81.38 per cent drop from the fourth quarter of 2025.
The decline in fuel imports came as Nigeria’s domestic energy market underwent significant changes, reducing the country’s reliance on imported petroleum products and easing pressure on foreign exchange demand.
At the same time, export earnings strengthened as total exports rose by 2.77 per cent from ₦20.60 trillion recorded in the first quarter of 2025 and by 11.63 per cent compared with ₦18.96 trillion in the preceding quarter.
Crude oil remained Nigeria’s largest export, contributing ₦11.20 trillion or 52.92 per cent of total exports.
Although crude oil export earnings were 13.53 per cent lower than in the first quarter of 2025, they increased by 15.45 per cent from the fourth quarter of 2025.
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Other oil product exports also recorded strong growth, rising to ₦6.78 trillion, representing increases of 51.49 per cent year-on-year and 10.88 per cent quarter-on-quarter.
Raw material exports emerged as one of the strongest-performing segments, surging by 46.83 per cent compared with the corresponding period of 2025 and by 28.62 per cent from the previous quarter to ₦1.53 trillion.
On the import side, Nigeria’s total import bill fell sharply to ₦13.62 trillion, down 18.17 per cent from ₦16.64 trillion recorded a year earlier and 21.05 per cent lower than the ₦17.25 trillion posted in the fourth quarter of 2025.
Despite the overall decline in imports, manufactured goods remained Nigeria’s largest import category at ₦8.48 trillion.
The segment grew by 12.94 per cent year-on-year, although it declined by 3.62 per cent from the previous quarter.
Non-Oil Exports Show Mixed Performance
While non-oil exports contributed ₦3.19 trillion to total export earnings, accounting for 15.05 per cent of total exports, performance across sectors was uneven.
Raw materials led growth within the non-oil segment, driven largely by urea exports.
Urea shipments, particularly to Brazil, generated ₦453.18 billion during the quarter and helped boost overall raw material exports.
Solid mineral exports also recorded strong annual growth, increasing by 74.63 per cent to ₦102.80 billion, supported by exports of mineral substances to China and cement clinkers to neighbouring African markets.
However, agricultural exports suffered a significant setback.
The sector generated ₦1.17 trillion, representing a 31.20 per cent decline from the first quarter of 2025 and an 11.39 per cent drop from the previous quarter.
Although superior-quality cocoa beans, sesame seeds and soya beans remained key export products, the overall decline highlighted ongoing challenges in agricultural export performance.
Manufactured goods exports also lost momentum, falling 28.53 per cent from the fourth quarter of 2025 to ₦302.64 billion, despite recording marginal annual growth.
The report showed that Asia and Europe remained the dominant destinations for Nigeria’s non-oil exports, while African countries continued to be major markets for manufactured goods.
India, China Lead Trade Relationships
India remained Nigeria’s largest export destination, accounting for 13.09 per cent of total exports, followed by France with 9.29 per cent and the Netherlands with 9.22 per cent.
On the import side, China maintained its position as Nigeria’s largest trading partner, supplying 37.42 per cent of total imports.
The United States accounted for 20.60 per cent, while India contributed 7.29 per cent.
Regionally, Europe received the largest share of Nigeria’s exports, accounting for 37.44 per cent of total export value, while Asia remained the dominant source of imports, contributing 55.45 per cent.
The first-quarter figures suggest that Nigeria’s trade surplus was driven less by broad-based export diversification and more by the combination of higher oil-related export earnings and a substantial reduction in petroleum product imports.
While growth in raw material and solid mineral exports provided support to the non-oil sector, the decline in agricultural and manufactured exports underscores the challenges that remain in building a more diversified export base.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X