German-Nigerian trade volume maintains steady decline

Nov 10, 2000 01:00 AM

German-Nigerian trade volume has maintained a steady decline over period of 10 years. The balance is however in favour of Germany. The trade volume on the German side which stood at $ 2.003 bn in 1990, has gone down $ 600 mm in 2000.
A break down of this dwindling fortune is as follows:
in 1991 the trade volume amounted to $ 2.173 bn,
1992 ($ 2.48 b),
1993 ($ 1.56 bn),
1994 ($ 1.38 bn),
1995 ($ 1.26 bn)
1996 ($ 1.36 bn),
1997 ($ 1.59 bn),
1998 ($ 967 mm),
1999 ($ 881 mm).

According to data released by The Delegation of German Industry and commerce for west Africa, crude oil and cocoa are the main German imports from Nigeria, out of the two, crude oil accounted for 93.6 % for the total volume of German imports from Nigeria in 1996 against 69.9 % recorded in 1999. With regards to cocoa, the country recorded a phenomenal increase from 3.0 % in 1996 to 11.6 % in 1999.
On the other hand, major German export products to Nigeria, machines, vehicles, electro technical products, chemical products and iron products witnessed a fluctuating fortune from 1996 to 2000. For instance, chemical products accounted for 9.2 % of the exports to Nigeria in 1996, in 1997 it accounted for 8.3 %, while in 1998 it stood at 10.3 %, 1999 $ 8.7 % and figures for years 2000 stand at 10.1 %.
German export of machines to Nigeria in 1996 accounted for 20 % of their total exports, in 1997 it stood at 23.7 %, 1998 (20.6 %), 1999 (19.4 %) while in this year 2000 it stood at 22.8 %. Also German export of vehicles to Nigeria for the period under review is as follows: 1996 (10.3 %), 1997 (20.3 %), 1998 (12 %), 1999 (23.6 %), 2000 (14.5 %).
Many reasons could be adduced for the imbalance in trade between Nigeria and Germany, most important of them is the fact that Nigeria is not a manufacturing nation and the price of crude oil, Nigeria major export is regulated in accordance with OPEC quota. On the other hand Germany is a manufacturing economy and there is little or no regulation as tothe volume of its export to Nigeria.

Source: AllAfrica.com