Trade in Services

Overview

Trade in services involves the export and import of non-tangible products, such as finance, telecommunications, transport, tourism, and IT. For Nigeria, the services sector has become a significant driver of economic growth, employment, and foreign exchange earnings.

Key Service Sectors

• Financial Services: Banking, insurance, fintech, and investment services form a growing portion of service exports and domestic economic activity.
• Information and Communication Technology (ICT): Software development, telecommunications, and digital solutions contribute to global trade in services.
• Transportation and Logistics: Air, maritime, and road transport services facilitate both domestic and international trade.
• Tourism and Hospitality: Cultural tourism, hotels, and leisure services attract foreign visitors and investment.
• Professional Services: Consulting, legal, education, and engineering services are expanding as Nigeria integrates into global markets.

Trade Agreements Supporting Services

• WTO General Agreement on Trade in Services (GATS): Nigeria’s participation ensures access to global service markets under agreed rules.
• AfCFTA Protocol on Trade in Services: Facilitates regional trade in services, promoting mobility of professionals and service providers.
• Bilateral Agreements: Partnerships with countries like China and the U.S. include provisions for service sector cooperation.

Opportunities and Challenges

• Opportunities: Digital economy expansion, fintech growth, regional integration, and professional services exports.
• Challenges: Regulatory gaps, infrastructure deficits, limited skilled workforce in some sectors, and barriers to cross-border service delivery.