Nigeria Trade Profile

Overview

Nigeria is a major trading nation in Africa, leveraging its natural resources, agricultural products, and growing domestic market. Trade forms a crucial part of the country’s economic strategy, both regionally and globally.

Major Trading Partners

China: Largest bilateral partner, focused on infrastructure, energy, and manufactured goods.
United States: Strong trade in petroleum, agricultural products, and manufactured goods, supported by AGOA.
European Union: Key destination for crude oil and other exports; imports machinery, chemicals, and industrial goods.
ECOWAS Countries: Regional trade is facilitated through the ECOWAS Trade Liberalisation Scheme, promoting free movement of goods.

Key Exports

Crude oil and petroleum products
Agricultural commodities: cocoa, sesame seeds, cassava, and palm oil
Solid minerals: tin, limestone, and coal

Key Imports

Machinery and equipment
Chemicals and pharmaceuticals
Manufactured consumer goods
Vehicles and transport equipment

Trade Agreements

Multilateral Agreements: WTO membership facilitates access to global markets.
Regional Agreements: ECOWAS Trade Liberalisation Scheme, AfCFTA for intra-African trade.
Bilateral Agreements: China-Nigeria trade agreements, AGOA with the United States.
Special Schemes: Generalised System of Preferences (GSP) and Multilateral Registered Exporters (REX) support preferential trade access.

Trade Balance

Nigeria traditionally runs a trade surplus due to oil exports, though fluctuations in global oil prices impact the overall balance.
Non-oil exports are gradually increasing to diversify revenue sources.

Opportunities and Challenges

Opportunities: Regional integration under AfCFTA, investment in manufacturing and agriculture, export diversification.
Challenges: Dependence on oil, infrastructure gaps, non-tariff barriers, and fluctuating global commodity prices.