Will Nigeria sustain trade growth in 2025?

Nigeria's trade volume reached 7.2 metric tons in 2024, showcasing a 20.7% growth in value, hitting $5.5 billion. The question now arises: can Nigeria sustain this growth momentum in the upcoming years, particularly in 2025? Bolaji Sofoluwe, Managing Director at ETK Group, shared insightful perspectives on CNBC Africa about the country's trade potential and progress under the African Continental Free Trade Area. The discussion highlighted key challenges and strategies essential for Nigeria to continue thriving in the global trade landscape. Amidst the evolving dynamics of the African Continental Free Trade Area, which aims to boost regional trade, Nigeria stands at a crucial juncture in enhancing its competitiveness and maximizing trade opportunities within the region and beyond. Sofoluwe emphasized the significance of leveraging invisible exports, such as digital services, to capitalize on the growing investment in the tech industry. By focusing on high-value services that are independent of traditional infrastructure constraints, Nigeria can unlock new avenues for trade growth and diversification. Furthermore, the conversation delved into the importance of strategic planning in addressing trade-related policy decisions. Sofoluwe highlighted the need for a long-term perspective and careful consideration in implementing tariff adjustments to maintain competitiveness and minimize disruptions to trade flows. The interview also shed light on the challenges posed by fluctuating trade dynamics and the impact of geopolitical relationships on trade volumes. Sofoluwe emphasized the importance of analyzing sector-specific drivers to project future trade trends and identify growth opportunities. The discussion culminated in recommendations for Nigeria to prioritize value addition and industry revitalization, particularly in sectors like the cotton value chain and textiles. By focusing on enhancing local production capacity and fostering innovation, Nigeria can strengthen its position in the global marketplace and drive sustainable economic growth. As Nigeria navigates the complexities of global trade, proactive strategies and targeted interventions will be crucial in unlocking the country's trade potential and sustaining growth in the years ahead.