U.S, Nigeria trade volume hits record low over import challenges
The volume of Nigeria’s bilateral trade with the United States has continued to be on a downward trend due to the advent of shale oil resources, which resulted to total stoppage of the U.S imports of crude oil from Nigeria.
Before now, the trade relationship between the two countries used to be in favour of Nigeria. But since the U.S halted importation from the country, the balance of trade has tilted in favour of the North American economy.
For instance, between January and May this year, the United States’ export was higher than its imports from Nigeria.
Specifically, the U.S exported about $1.billion while its imports was $615 million as against the over $2.4 billion worth of goods imported from Nigeria by the U.S during the same period last year.
The trade volume started declining years ago when the United States decided to be self-sufficient in crude oil production.
In 2011, the U.S imported a total of $30.5 billion worth of goods from Nigeria, while its exports stood at $4.9 billion.
In 2012, its import was $19 billion while its export was $5 billion.
By 2013, trade between the two counties was now in favour of the U.S as its goods imports from Nigeria totaled $11.7 billion, a 38.3 per cent decrease ($7.3 billion) from 2012.
The five largest import categories in 2013 were: Mineral Fuel (oil) ($11.6 billion), Cocoa ($29 million), Special Other (returns) ($21 million), Food Waste ($9 million), and Art and Antiques ($5 million).
This has however affected the volume of trade between the United States and sub-Saharan Africa/
According to trade statistics released by African Growth Opportunity Act (AGOA), in 2014, U.S. total trade (exports plus imports) with sub-Saharan Africa (SSA) totaled $52.1 billion, a decrease of 18 per ent compared to 2013.
While U.S. exports to the world grew by 2.8 per cent, U.S. exports to SSA (mostly composed of machinery and aircraft) increased by six per cent, reaching $25.4 billion and accounting for only 1.6 percent of total U.S. exports to the world.
The top five African destinations for U.S. products were South Africa, Nigeria, Angola, Ethiopia, and Kenya.
Exports to Ethiopia increased by 151 percent (increase in U.S. exports of aircraft) and to Kenya by 152 percent (increase in U.S. exports of aircraft). In 2014, U.S. exports to the Southern African Development Community (SADC) reached $10 billion, a decrease of 3 percent from 2013; U.S. exports to the Southern
African Customs Union (SACU) reached $6.8 billion, a decrease of 11 percent; U.S. exports to the Economic Community of West African States (ECOWAS) reached $8.7
billion, a decrease of 3 percent; U.S. exports to the West African Economic and Monetary Union (WAEMU) reached $2.4 billion, an increase of nine per cent; and U.S. exports to the East African Community (EAC) reached $2 billion an increase of 66 per cent from 2013.