Commodity import index increases by 0.82 per cent in Q1 2021

Food importation: Nigeria living on borrowed time, says economist 

 

The National Bureau of Statistics (NBS) at the weekend said all commodity group import index rose by 0.82 per cent between January and March 2021.

The surge, according to its report titled “Commodity Price Indices and Terms of Trade (Q1 2021)”, was basically propelled by an increase in the prices of mineral products, which rose by 1.53 per cent, animals products 01.38 per cent and vegetables 1.24 per cent.

The NBS said, “The All commodity group import index increased by 0.82% between January and March, 2021. This was driven mainly by an increase in the prices of Mineral products (1.53%), Live animals; animal products (1.38%) and animal and vegetable fats and oils and other cleavage products (1.24%).”

The report explained that the terms of trade represent the ratio between a country’s export prices and its import prices.

“The ratio is calculated by dividing the price of the exports by the price of the imports, usually in percentage terms.

” 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, and the country can afford more imports for the same value of exports.

“For example, an increase in the price of oil between two periods (with oil production remaining the same) is likely to increase or improve the terms of trade for Nigeria and vice versa. The TOT is recorded as an index and can be used as an indicator of an economy’s health,” the statistics body said. 

NBS, however, noted that the index was negatively affected by declines in the prices of products of the chemical and Allies industries (-0.36%) as well as Wood and articles of wood, wood charcoal and articles (-0.29%).

It said between February and March 2021, the all commodity group import index grew by 0.07%, driven by increase in the prices of Base metals and articles of base metals (0.51%), boilers, machinery and appliances (0.50%) etc.

The index was negatively affected by decline in the prices of Animal and vegetable fats and oils and other cleavage (-0.54%), prepared foodstuffs; beverages, spirits and Vinegar (-0.34%) and Plastic rubber and articles thereof (-0.19%). 

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