Nigeria’s commodity terms of trade dips by 0.35% in Q2’21

Nigeria's commodity terms of trade dips by 0.35% in Q2'21 in Q2'21-NBS

Nigeria’s all-products terms of trade (TOT) index decreased by 0.35 per in the second quarter of the year (Q2’21).

This according to the National Bureau of Statistics, NBS, was as a result of declines in the prices of live animals, animal products , wood and articles of wood; wood charcoal and articles , Vehicles, aircraft and parts thereof, vessels among others.

In the statistician latest Commodity Price Indices and ToT report, it stated that the All -commodity group import and export indexes increased by 1.07 percent and 0.75 per cent during the period, respectively.

The terms of trade (TOT) represent the ratio between a country’s export prices and its import prices. An increase in the terms of trade between two periods (or when TOT is greater than 100%) means that the value of exports is increasing relative to the value of imports.

The report stated:”The All- commodity terms of Trade for April, May and June, 2021 stood at 101.40, 101.77 and 101.05
“The All-commodity group terms of trade grew by 0.37 per cent in May but fell by 0.71 per cent in June and on average decreased by 0.35 per cent between April and June 2021.
“The decline in terms of trade between April and June was driven by decreases in the prices of Live animals, animal products(-3.5 per cent), wood and articles of wood, wood charcoal and articles (-1.59 per cent),Vehicles, aircraft and parts(-1.45 per cent).
“The decline was, however mitigated by increase in the price of products of the chemical and allied industries (1.14 per cent).”

Import

NBS stated that all -commodity group import index increased by 1.07 per cent between April and June, 2021. This was driven mainly by an increase in the prices of products of the chemical and Allied industries (1.40 per cent), wood and articles of wood, wood charcoal and articles (1.37 per cent) Paper making material; Paper and paperboard articles (1.23 per cent)

“The All-region group import index increased by 1.07 per cent between April and June 2021 due to increases in import prices across All-regions; Oceania (1.4 per cent, America 1.36 per cent , Africa 1.22 per cent, Asia 1.11 per cent and Europe 0.96 per cent respectively. The monthly percentage change showed an increase of 0.12 per cent in May and 0.95 per cent in June.”

Export

The report noted that all-commodity group export index increased by 0.72 per cent between April and June 2021. This Was driven mainly by an increase in the prices of Product of the chemical and Allied industries (2.54 per cent), Plastic rubber and articles (0.85 per cent) and Mineral products (0.74 per cent). However, the index was negatively affected by Live animals, animal products (-2.61 per cent), Vehicles, Aircraft and parts (-0.24 per cent) and Wood and articles of wood, wood charcoal and articles (-0.23 per cent).

“All-region export index increased by 0.72 per cent between April and June 2021 due to increases in export prices to All-regions except Africa. During the period under review, America recorded 3.46 per cent, Europe 0.56 per cent, Oceania 0.27 per cent and Asia 0.18.The month –on-month changes show an increase of 0.48 per cent in May and 0.23 per cent in June .”

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