Home Economy Urea replaces sesamum seeds as Nigeria’s biggest non-oil export in 2022 Q1

Urea replaces sesamum seeds as Nigeria’s biggest non-oil export in 2022 Q1

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The cost of Nigeria’s exportation of Urea stood at N208.39 billion in the first three months of 2022 compared to N16.77 billion in the first three months of 2021.

Urea has replaced Sesamum seeds as Nigeria’s biggest non-oil export product in the first quarter of 2022, data sourced from the National Bureau of Statistics (NBS) has shown.

According to the statistical agency, Urea ranked the third-highest of Nigeria’s export with a total of 2.93 percent share of total exports for the first quarter of 2022, a sharp contrast compared to the corresponding period last year when Sesame seeds accounted for the highest chunk of Nigeria’s non-oil export.

The cost of Nigeria’s exportation of Urea stood at N208.39 billion in the first three months of 2022 compared to N16.77 billion in the first three months of 2021.

Raw materials exports rose by 504.17 percent in the first quarter of 2022 to N259.48 billion, from N42.95 billion in the first quarter of 2021. During the quarter, ‘Urea whether or not in aqueous solution’ was exported to Brazil at a value of N63.11 billion.

FBNQuest, an investment banking and asset management business of FBN Holdings plc, said the increase in urea exports can be linked to the start-up of operations at the Dangote Fertilizer facility.

This is following the commencement of export operations by the company to the US, India, Brazil amongst others.

Tunde Abidoye, Head of research of FBNQuest, explained Nigeria exporting more urea is good for the country in that it increases the export base and foreign exchange (FX) earnings from non-oil exports.

He further stated that “Dangote’s fertilizer has added to the production of urea in the country and the commencement of operations in Dangote’s fertilizer facility means that there are now more fertilizers being produced in Nigeria and it is available for export

NIPC INTELLIGENCE

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