Improving Nigeria’s Share of Global Trade

Nigeria’s Share of Global Trade: Trade accounted for 33.0% of Nigeria’s GDP in 2018, against 26.3% the year before, according to the World Bank.

The country mainly exports petroleum oils (82.3% of export revenues in 2018.

Comtrade latest data available) and petroleum gas (11.1%).

And it imports petroleum oils (29.0%), light-vessels (9.1%).

Wheat and meslin (3.2%), motor vehicles (2.8%), motor-cycles (1.6%).

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Nigeria’s Share of Global Trade: https://www.stearsng.com

Nigeria’s Share of Global Trade

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Nigeria’s Share of Global Trade

Nigeria’s main trade partners are India, China, the United States, Belgium, Spain, the Netherlands, South Korea, South Africa, and France.

Nigeria has signed trade agreements with a number of countries in Africa.

The Caribbean, the Pacific, and the European Union.

Raw materials and semi-finished goods benefit from reductions in customs tariffs.

Even if the country remains protectionist in certain sectors such as agriculture.

There are currently 24 duty-free zones and 8 more under construction in Nigeria according to NEPZA.

According to the WTO, as of mid-2018 Nigeria had one non-tariff measure in force.

Lingering barriers to trade and investment persist in the country, mainly due to long bureaucratic delays.

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Nigeria’s Share of Global Trade

The objective of Nigeria’s trade policy was to promote and diversify its exports by reinforcing national competitiveness and encouraging liberalization through the reduction of subsidies.

However,  according to WTO, the fall of oil prices in 2016 hampered diversification efforts.

Impaired by the drop in oil prices and in production.

The country’s trade balance was negative for the first time in seven years in 2015-2016.

However, in 2017 and 2018, the rise in prices and the recovery of exports allowed the trade balance to be positive again (USD 13,15 billion and USD 22.34 billion respectively).

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Nigeria’s Share of Global Trade

Get the  Latest available data

Foreign Trade Values 2015 2016 2017 2018 2019
Imports of Goods (million USD) 48,000 39,000 31,273 43,007 55,257
Exports of Goods (million USD) 48,400 32,800 44,468 60,547 62,531
Imports of Services (million USD) 18,836 12,318 17,973 30,625 38,854
Exports of Services (million USD) 2,742 3,718 4,541 4,351 4,485

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Nigeria’s Share of Global Trade

Foreign Trade Indicators 2015 2016 2017 2018 2019
Foreign Trade (in % of GDP) 21.3 20.7 26.3 33.0 n/a
Trade Balance (million USD) -6,447 -536 13,148 20,467 2,868
Trade Balance (Including Service) (million USD) -22,900 -8,551 -86 -5,599 -30,893
Imports of Goods and Services (Annual % Change) -26.8 -9.0 4.8 49.2 n/a
Exports of Goods and Services (Annual % Change) 0.1 11.5 8.7 -1.4 n/a
Imports of Goods and Services (in % of GDP) 10.7 11.5 13.2 17.5 n/a
Exports of Goods and Services (in % of GDP) 10.7 9.2 13.2 15.5 n/a

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Nigeria’s Share of Global Trade

Foreign Trade Forecasts 2020 2021 (e) 2022 (e) 2023 (e) 2024 (e)
Volume of exports of goods and services (Annual % change) 2.0 5.1 5.7 6.2 3.9
Volume of imports of goods and services (Annual % change) -12.8 0.0 5.3 3.6 4.8

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Nigeria’s Share of Global Trade

The World Trade Organization will work to deliver technical assistance, training and quality upgrade to unlock some bottlenecks confronting Nigeria.  WTO as an economic institution that could work with other financial institutions to support investments and technical assistance to mitigate Nigeria’s economic challenges. Nigeria’s share in world trade was 0.33 per cent which showed a small fraction of what Nigeria could do. Our share in Africa’s trade is 19 per cent, which is below our share of Africa’s Gross Domestic Product (GDP). This means we can turn it around.

“I like to look at the optimistic side, when I saw this I knew that there was potential for us to do much. And that is the message I want to convey to the country.

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Nigeria’s Share of Global Trade

This means that we must step up our action on the economy, we must do better and harder in several ways because of our youth who are waiting for jobs. Nigeria needs to focus on adding value on transitioning. We are an oil and gas-based economy, and that has sustained us and still will. But the world is moving away from fossil fuel.

Trade negotiations on agricultural issues were very important for Nigeria .

The country was active in agriculture and also in the Joint Statement Initiatives.

Nigeria is equally involved in E-commerce, services domestic regulations, investment facilitation, micro small and medium enterprises and women in trade. It was a potential area Nigeria could invest in to improve its logistics.

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