Recent reports released by the National Bureau of Statistics, NBS, shows that Nigeria’s trade with other African countries declined by 33.8% in three years.
Current situation
In the three years period studied by the report, Nigeria’s export trade within the continent declined from N2.81 trillion in 2019 to N1.86 trillion in 2021. The report also points out that Nigeria’s trade with the rest of the world declined from 13.91% in 2019 to 7.45% in 2021.
Causes
According to the private sector merchants, the downward trend in Nigeria’s trade relation within the continent is due to the disruption in Nigeria’s supply chain, unemployment, increase in production cost and scarcity of foreign currencies to fund importation of equipment for operations.
What this means
With an increase in unemployment (over 40%) and forex scarcity being the leading cause of the decline in Nigeria’s trade with African countries and the rest of the world, inflation is the expected result.
What they are saying
Dr. Chinyere Almona, Director General, Lagos Chamber of Commerce and Industry (LCCI), in an interview said that Nigeria needs to exploit the business opportunities that AfCFTA provides.
AfCFTA
African Continental Free Trade Area (AfCFTA) is an African Union project implemented in January 2021, aimed at encouraging intra-African trade and boosting Africa’s 2% contribution to the world’s global trade. The pact reduces all trade costs and boosts Africa’s integration into global supply chains.