Nigeria’s Regional Trade Declines, Ranks 4th Behind South Africa, Cote d’Ivoire, Egypt
Written by Deborah Oyinloye on July 11, 2024
A mere three years into the African Continental Free Trade Area (AfCFTA) agreement, Nigeria has begun to experience a significant decline in its intra-continental trade and a drop in its performance ranking among nations.
This information comes from the Africa Export-Import Bank (Afreximbank) in its Africa Trade Report 2024, titled “Climate Implications of the AfCFTA Implementation.” The report highlighted that Nigeria’s share of total intra-African trade fell to approximately 4.2 percent in 2023, down from 4.4 percent in 2022.
According to the report, Nigeria’s intra-African trade decreased by 2.1 percent to $8 billion in 2023, from $8.2 billion in the preceding year. This downturn places Nigeria in fourth place, trailing behind South Africa, Cote d’Ivoire, and Egypt.
“This decline led to a slight reduction in Nigeria’s share of total intra-African trade, which dropped from 4.4 percent in 2022 to around 4.2 percent in 2023,” the report stated. “About 5.1 percent of Nigeria’s exports were destined for African countries, with Cote d’Ivoire, South Africa, and Senegal being the primary recipients of Nigerian exports within the continent. Conversely, Nigeria’s imports from the rest of Africa remained relatively modest, comprising less than 2.9 percent of its total imports.”
Meanwhile, Afreximbank reported that the value of intra-African trade rose by 3.2 percent to $192.2 billion in 2023. However, this increase represents a deceleration compared to the 10.9 percent growth rate observed in the previous year.
The report estimated that the export potential for intra-African trade exceeded $69.4 billion in 2023, suggesting that the current level of intra-African trade could potentially escalate to $261.6 billion, representing 36 percent of total intra-African trade, provided all conditions remain constant.
The report identified several key products with significant export potential within Africa, including machinery, electrical goods, motor vehicles and parts, food products, minerals, beauty products, chemicals, plastics and rubber, ferrous metals, pearls and precious stones, and fertilizers.
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Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
