Nigeria’s total trade hits ₦72trn in 2023

Nigeria's total trade has reached an impressive ₦71.9 trillion in 2023, according to data from the National Bureau of Statistics. This significant rise in trade highlights the country's economic prowess and potential for growth in both regional and global markets. Jonathan R. M.O., Professor of International Economic Relations at Covenant University and a Consultant for ECOWAS on the Common Investment Market, shared insights on the key highlights of the data, emphasizing Nigeria's importance in trade relationships, particularly in Southeast Asia. Despite a trade deficit of ₦1.3 trillion, Professor Jonathan reassured that Nigeria's strong position in trading services outweighs concerns about the deficit in goods trade. The professor highlighted that Nigeria holds a comparative advantage in trading services, constituting about 54% of the country's GDP. He emphasized that the balance of trade accounts for different factors beyond just goods and services, providing a holistic view of Nigeria's trade dynamics. Looking ahead, Nigeria is set to embark on a new chapter in its trade journey with the formal export of locally produced commodities to South Africa, Rwanda, Cameroon, and Kenya starting in April under the Guided Trade Initiative of the African Continental Free Trade Area. This initiative marks a significant step towards enhancing intra-African trade and strengthening economic ties within the region. The delayed formal agreements under the African Continental Free Trade Area have raised questions about Nigeria's active participation in regional trade. However, Professor Jonathan explained that the process of finalizing protocols and agreements is necessary to ensure compliance with trade policies and promote sustainable economic growth. He highlighted the upcoming trade initiatives as a positive development for Nigeria, which underscores the country's commitment to regional economic integration. The focus on expanding trade relations with African nations aligns with the goals of the African Continental Free Trade Area to boost intracontinental trade and foster economic development across the region. The export of key agricultural products such as Cashew Nuts, Sesame Seeds, Cocoa Beans, Ginger, and Soyabeans presents opportunities for Nigeria to diversify its export base and tap into new markets. Professor Jonathan noted that value chain integration and processing of agricultural products will play a crucial role in expanding Nigeria's export capabilities. By transitioning from primary products to semi-processed and manufactured goods, Nigeria aims to position itself as a key exporter in the region. Leveraging the benefits of economic integration, Nigeria can capitalize on trade creation and cater to the evolving demands of African markets. Addressing concerns about rules of origin, Professor Jonathan assured that the issues have been resolved through negotiations and agreements. He emphasized the importance of adhering to verified quality standards to prevent any violations of trade regulations. Nigeria's focus on ensuring compliance with trade protocols reflects its commitment to fostering a transparent and sustainable trading environment. As Nigeria prepares to embark on new trade ventures under the African Continental Free Trade Area, the country is poised to leverage its strategic position and economic potential to drive growth and prosperity. The guided trade initiative holds promise for expanding Nigeria's export portfolio and strengthening its trade relations with key African partners. By harnessing the power of regional cooperation and trade facilitation, Nigeria can unlock new opportunities for economic advancement and position itself as a leading player in the African trade landscape.