In 2023, Nigeria’s intra-African trade experienced a slight decline, dropping to 6.4% of the nation’s total trade, down from 6.5% in 2022. This reduction highlights the challenges facing Nigerian policymakers as they work to maximize the benefits of the African Continental Free Trade Area (AfCFTA). Notably, Nigeria’s share of intra-African trade has been decreasing over the past few years: it stood at 7.5% in 2021, 11% in 2020, and peaked at 13.9% in 2019, according to recent estimates.
However, despite this decline in regional trade, Nigeria’s total trade value surged by 37.2% in 2023, reaching N71.9 trillion, compared to N52.4 trillion in the previous year. This trade was split nearly evenly between exports (N35.96 trillion) and imports (N35.92 trillion), resulting in a modest trade surplus of N44.77 billion for the year.
When broken down by region, Nigeria’s trade relationships with Europe and Asia were fairly balanced in 2023. The European Union (EU) accounted for 38.8% of both Nigeria’s exports and imports, with total trade between the two regions reaching N28.58 trillion. Asia, on the other hand, accounted for 39.9% of Nigeria’s total trade, with a total trade value of N28.66 trillion, driven largely by imports (N19.07 trillion) compared to exports (N9.59 trillion).
Trade with the Americas amounted to N9.76 trillion, with exports (N6.16 trillion) exceeding imports (N3.60 trillion). Nigeria’s trade with Oceania was relatively small, at N167.23 billion in exports and N99.39 billion in imports.
Regionally, Nigeria recorded a trade surplus with Africa (N2.82 trillion), the Americas (N2.57 trillion), Europe (N4.08 trillion), and Oceania (N67.84 billion). However, the country faced a significant trade deficit with Asia, amounting to N9.48 trillion, which led to an overall surplus of just N44.77 billion in 2023.
A closer look at intra-African trade reveals interesting trends. Although ECOWAS (the West African economic bloc) accounted for a large portion of Nigeria’s exports to Africa (60.2%), Nigeria’s imports from Africa were mostly sourced outside of ECOWAS. In 2023, Nigeria imported goods worth N896.05 billion from Africa, with ECOWAS contributing only N168.28 billion, while the rest of the continent accounted for N727.77 billion.
Trade with the United States dominated Nigeria’s imports from the Americas, with Brazil and Canada following closely behind. In Europe, the Netherlands was Nigeria’s largest trading partner, followed by the United Kingdom, Germany, Italy, France, and Spain.
In Asia, China remained the leading source of Nigerian imports, accounting for 35% of the total, with India and Japan also playing significant roles.
On the export side, Nigeria’s trade with ECOWAS was substantial, especially in petroleum products, which dominated export figures. A significant 81.23% of Nigeria’s exports in the last quarter of 2023 were petroleum-based, including crude oil and bituminous oil, while natural gas accounted for 8%. Other notable exports included urea and petroleum gases, though agricultural exports remained minimal, contributing less than 1% to the overall export earnings.
Nigeria continues to focus on ensuring the full implementation of AfCFTA, with support from various sectors, including the private sector. Nwaibu Legasorsi Nima of Nigeria’s Private Sector Alliance reaffirmed Nigeria’s leadership role in driving the success of the AfCFTA during the 13th AfCFTA Council of Ministers Meeting in Durban, South Africa. He emphasized Nigeria’s historical commitment to the AfCFTA, from its role in chairing the negotiation rounds to its contributions to the foundational treaties such as the Abuja Treaty and the Lagos Plan of Action.
