Nigeria total trade up 5.8% in Q2'23

Nigeria's total trade saw a significant increase of 5.8 per cent to 12.7 trillion naira in the second quarter of 2023, with exports rising by 8.2 per cent to 7.1 trillion naira, representing 55.1 per cent of total trade. Bamidele Ayemibo, an export consultant, shared insights on the key takeaways from the data. Ayemibo highlighted the continued dominance of the US and Netherlands as major trading partners for Nigeria in import and export, with crude oil and gas accounting for 90 per cent of exports, which he deemed concerning. China remains a significant origin of imports for Nigeria, followed closely by the US. The data also revealed a trade surplus of $1.5 billion, with non-oil exports contributing only 10 per cent, signaling the need for increased focus on growing non-oil exports. Ayemibo emphasized the importance of incentivizing exporters and reducing the cost of exports to support the growth of value-added goods, particularly in the manufacturing sector. He underscored the need for Nigeria to leverage opportunities under the African Continental Free Trade Agreement (AFCFTA) to enhance intra-African trade. Despite the potential for growth, Ayemibo noted that Nigeria has yet to begin trading under AFCFTA, as other African countries have already started. The discussion also delved into the agricultural sector, where the export of products such as cashew nuts, ginger, and cocoa beans showed a significant increase year-on-year. However, Ayemibo expressed concern over the reliance on commodity exports and stressed the importance of prioritizing value-added exports to drive economic growth and create more local jobs. Overall, the trade data highlighted both opportunities and challenges for Nigeria's economic development, emphasizing the need for proactive measures to diversify exports, enhance value addition, and maximize the benefits of regional and international trade agreements.