Nigerian exports slumped 40.3 percent last year after a fall in crude prices slashed government revenues, weakened the currency and caused the economy to grow at its slowest pace in decades, the national bureau of statistics (NBS) said.

Nigeria, Africa’s biggest economy, faces its worst economic crisis in years, triggered by the fall in the value of its exports, mostly crude, which brings in hard currency it uses to finance imports.

With limited manufacturing capacity, Nigeria imports most of what it consumes. Last year imports fell 9.2 percent, the NBS said adding that the decline helped mitigate a trade balance.

The balance of trade for 2015 was 3.03 trillion naira, down from 8.93 trillion naira a year earlier ($15.2 billion – $44.9 billion).

“This development arose largely due to sharp decline the value of exports. The structure of Nigeria’s exports is dominated by crude,” the NBS said.

Nigeria’s exports fell by 29.7 percent in the fourth quarter from a year ago and imports declined 22.4 percent, the NBS said. The fall in crude oil exports, which accounted for 71.4 percent of total domestic exports last year, hit the economy the most.

Nigeria’s economic slowed in 2015 to grow at 2.8 percent, its slowest growth in decades, down from 6.2 percent in 2014, as currency controls introduced by the central bank last year to support the naira, as oil prices plunged start to hurt growth.

The dollar restrictions caused inflation to spike in February, rising to almost a three-and-half-year high while forcing lenders to delay hard currency loan and trade repayments to foreign bank.

The IMF has called on Nigeria to lift the curbs and let the naira reflect “market forces” more closely, as the restrictions had significantly affected the private sector. The naira trades on the unofficial market some 40 percent below the official rate to the dollar.

President Muhammadu Buhari has rejected calls to devalue the naira, backing the central bank, arguing that dollar curbs were necessary as Africa’s top oil producer could no longer afford to import as much as it had in the past due.

Nigeria exported mainly to Asia and Europe last year while imports were dominated by machinery, petrol and foods products from Asia, Europe and Americas. Imports within Africa grew by 6.3 percent.

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Merchandise Trade Declines in Q4, 2015

Declining Trade Balance due to falling exports

Total External Merchandise Trade

The total value of Nigeria’s merchandise trade during the Fourth Quarter of 2015 stood at N3,653.1 billion, 9.2% lower than the value of N4,021.4 billion recorded in the preceding quarter. For the 2015 calendar year, the country’s total trade was recorded at N16,426.8 billion, amounting to N7,251.6 billion or 30.6% less than the total trade value recorded for 2014. This development arose largely due to sharp decline the value of exports; from N16,304.0 billion in 2014 to N9,728.8 billion in 2015, a decline of 40.3%. A decrease of N676.4 billion or 9.2% in the total imports in 2015 helped to mitigate the declining trade balance, which stood at N3,030.8 billion, N5,898.9 billion less than the value in 2014. The crude oil component of total trade decreased by N4,945.9 billion or 41.6% as against the level recorded in 2014 (Table 1).

*Crude oil figures for this quarter are provisional

Imports Classified by Standard International Trade Classification and Country of Origin

The value of Nigeria’s imports stood at N1,576.4 billion at the end of Q4, 2015. This was 6.6% less than the value (N1,688.2 billion) recorded in the preceding quarter. Comparison with the corresponding quarter of 2014, showed a decrease of N454.6 billion or 22.4%. The structure of Nigeria’s imports according to SITC was dominated by the imports of “Machinery and transport equipment”, “Mineral Fuel”, and “Food and Live Animals”, which accounted for 32.4%, 18.5%, and 15.0% respectively in 2015. These commodities contributed the most to the value of import trade in 2015, whereas commodities such as “Crude inedible materials”, “Oils, fats & waxes”, and “Beverages & tobacco”, contributed the least; accounting for 1.6%, 1.0%, and 0.5% respectively.

Imports by section were dominated by the imports of “Boilers, machinery and appliances”, which accounted for N1,580.0 billion or 23.6% of the total value of imports in 2015. Other commodities which contributed noticeably to the value of imports in 2015 were “Mineral Products” at N1,273.4 billion (19.0%), “Vehicles, aircraft and associated parts” at N608.5 billion (9.1%), “Products of the chemical and allied industries” at N578.9 billion (8.6%) and “Base metals and articles of base metals” at N574.1 billion (8.5%).

In 2015, imports classified by Broad Economic Category revealed that “Industrial supplies not elsewhere classified” ranked first with N1,824.1 billion or 27.2%. This was followed by “Capital goods and parts” with the value of N1,516.7 billion or 22.6%, and “Fuels and Lubricants” with the value of N1,210.7 billion or 18.1%. The value of Premium Motor Spirit stood at N288.6 billion.

Nigeria’s imports by Economic region revealed that the country consumed goods largely from Asia with an import value of N2,833.5 billion or 42.3%. The country also imported goods valued at N2,501.6 billion or 37.3% from Europe, and N871.3 billion or 13.0% from The Americas. Imports from within the continent of Africa totalled N420.4 billion or 6.3%, while imports from the region of ECOWAS amounted to N213.8 billion.

Exports Classified by Standard International Trade Classification and Country of Destination

The value of the nation’s exports totalled N2,076.7 billion in Q4, 2015, showing a decrease of N256.5billion, or 11.0%, over the value recorded in the preceding quarter. On an annual basis total exports from Nigeria stood at N9,728.8 billion at the end of 2015, representing a drop of N6,575.2 billion or 40.3% over levels recorded in 2014. Notwithstanding a steep decline in crude oil exports by N4,945.9 billion or 41.6% in 2015, the structure of Nigeria’s exports is still dominated by crude oil exports. The contribution of crude oil to the value of total domestic export trade amounted to N6,945.3 billion or 71.4% in 2015 (estimate figures).

Exports by Section, revealed that the largest product exported by Nigeria in 2015 was “Mineral products” which accounted for N8,574.3 billion or 88.1%. Other products that contributed noticeably to Nigeria’s exports include “Vehicles, aircraft and parts thereof; vessels etc.” and “Prepared Foodstuffs; beverages, spirits and vinegar; tobacco” whose values stood at N681.6 billion or 7.0%, and N167.1 billion or 1.7% respectively, of the total exports of Nigeria for the year.

Exports by continent, showed that Nigeria mainly exported goods to Europe and Asia, which accounted for N3,866.6 billion or 39.7% and N2,945.8 billion or 30.3% respectively, of the total export value for 2015. Furthermore, Nigeria exported goods valued at N1,400.4 billion or 14.4% to the continent of Africa while export to the ECOWAS region totalled N608.3 billion.