Nigeria’s intra-Africa trade up 195% to N2.9trn

Further details show that the share of Nigeria’s intra-Africa trade to its total trade, though still small, also increased within the period.

At N2.911 trillion, Nigeria’s intra-Africa trade represented 9.13 percent of its total foreign trade which stood at N31.9 trillion in Q2’24 as against 7.73 percent contribution to its total foreign trade amounting to N13.001trillion in the corresponding period of 2023, Q2’23.

On a Quarter-on-Quarter basis (between Q1’24 and Q2’24), the value of Nigeria’s trade with other African countries rose by 10.3 percent to N2.911 trillion in Q2’24 from N2.639 trillion in Q1’24.

Commenting, David Adonri, Vice Chairman, Highcap Securities, attributed the rise in Nigeria’s intra-Africa trade to escalation of imports to meet shortage in consumer goods.

“The increase in intra-African trade by Nigeria may not be due to export by Nigeria but escalation of imports to meet shortage in consumer goods.

“Opening of borders facilitated the jump in imports. Imports are still rising due to the havoc bandits and terrorists are wreaking on the productive economy,” he added.However, Mercy Okon, Senior Analyst at Parthian Partners, said that some companies have already started benefiting from African Continental Free Trade Area (AfCFTA) full take off, which she said enhanced Nigeria’s intra-Africa trade position within the review period.“The African Continental Free Trade Agreement (AfCFTA) aims to boost intra-Africa trade and economic growth. Nigerian companies like Dangote Cement, Nigerian Breweries, Flour Mills of Nigeria Plc, and Guinness Nigeria have already benefited from the increased market access and reduced tariff,” Okon said.

Meanwhile, analysis by commodities traded between Nigeria and other African countries showed that petroleum oils and oils obtained from bituminous minerals valued at N1.991 trillion (84.53% of total exports to Africa), floating or submersible drilling or production platforms (N81.69 billion or 3.47%), electrical energy (N63.28 billion or 2.69%), vessels and other floating structures for breaking up (N37.02 billion or 1.57%) were the main commodities exported to African countries in the quarter under review. The top five products accounted for 93.34 percent of total exports to Africa. 

On the other hand, Nigeria’s imports from African countries in 2024 comprised mainly gas oil N73.48 billion (13.23%), petroleum bitumen N44.19 billion (7.96%), diammonium hydrogen orthophosphate N40.91 billion (7.36%), butanes N40.25 billion (7.25%), and isolating switches and make-and-break switches N28.19 billion (5.08%) of total imports from African countries.

Nigeria’s intra-Africa trade up 195% to N2.9trn - Vanguard News (vanguardngr.com)