If Nigeria exports crude oil worth ₦500 billion and imports refined petroleum products worth ₦700 billion in a given year, the balance of trade is

The balance of trade is calculated as the value of exports minus the value of imports. Here, ₦500 billion − ₦700 billion = −₦200 billion, indicating a trade deficit of ₦200 billion. A negative balance of trade means the country is importing more than it exports, resulting in an unfavourable balance. Options A and D incorrectly state a surplus, while B uses the wrong operation.