The National Bureau of Statistics (NBS) on Wednesday reported that Nigeria’s All- products terms of trade (TOT) index decreased by 0.35 per in the second quarter (Q2) of the year.
The official statistics producing agency attributed the marginally decline to drops 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.
Giving these details in its latest ‘Commodity Price Indices and Terms of Trade Report Q2, 2021’ the agency also reported that the All -commodity group import and export indices increased by 1.07 percent and 0.75 percent respectively during the period.
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 NBS further clarified on its findings: “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 percent in May but fell by 0.71 percent in June and on average decreased by 0.35 percent 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 percent), wood and articles of wood, wood charcoal, and articles (-1.59 percent), vehicles, aircraft, and parts(-1.45 per cent).
“The decline was, however, mitigated by an increase in the price of products of the chemical and allied industries (1.14 per cent)”, it added.
According to the Bureau, a further analysis of the import-export trade trends in the quarter under review showed that the All -commodity group import index increased by 1.07 per cent between April and June 2021.
It added that increase 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) Papermaking material; Paper and paperboard articles (1.23 per cent)
The NBS stated that 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.
It reported that the monthly percentage change showed an increase of 0.12 per cent in May and 0.95 per cent in June.
On the export side, the Bureau clarified: ” The 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”, the agency added.
