March 02, (THEWILL) — A significant drop in import expenditure has pushed the country to a $1.28 billion trade surplus, marking a notable turnaround in its external trade position and easing pressure on foreign exchange reserves.
Latest trade data show that total imports fell sharply during the review period, driven largely by reduced spending on petroleum products, machinery, and consumer goods.
Analysts attribute the decline to a combination of softer global commodity prices, tighter foreign exchange management, and moderated domestic demand.
Exports, meanwhile, remained relatively resilient, helping to widen the trade gap in the country’s favour.
Earnings from key sectors including agriculture, minerals, and manufactured goods provided steady inflows, offsetting the impact of weaker global demand in some markets.
The $1.28 billion surplus represents a significant improvement compared to previous periods when the country recorded persistent trade deficits.
Economists say the development provides short-term macroeconomic relief, particularly by strengthening external reserves and stabilising the local currency.
However, experts caution that a surplus driven primarily by reduced imports may not necessarily signal strong economic expansion.
A sustained decline in imports can also reflect subdued industrial activity and weak consumer spending.
Policymakers are expected to leverage the improved trade position to consolidate foreign reserve gains, enhance export promotion strategies, and support domestic production in order to sustain the positive momentum.
The trade figures underscore the delicate balance between managing import demand and driving export growth as authorities seek to strengthen the country’s external sector resilience
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
