Nigeria’s trade with African countries hits N2.41 trillion but still below pre-COVID-19 levels despite free trade agreement

Nigeria’s trade with African countries is yet to reach pre-COVID-19 levels despite implementing the African Continental Free Trade Area (AfCFTA) agreement in 2021.

Data from the latest foreign trade report of the National Bureau of Statistics (NBS) reveals a slow recovery in Nigeria’s trade with other  nations in Africa.

Even though there has been progress from the pandemic slump, the trade volumes have yet to surpass the pre-COVID-19 zenith, making it hard to gauge  the usefulness of the AfCFTA agreement.

According to the NBS, analysis shows that in 2019, the import trade figure was N1.11 trillion, while exports soared at N3.92 trillion, cumulating a total trade of N5.03 trillion, representing a climax for Nigerian trade within the continent.

However, 2020 and the global pandemic reduced trade as Import values plummeted to N406.88 billion,lower than the previous year.

While less affected, exports still declined to N2.37 trillion, bringing the total trade down to N2.78 trillion, signalling a retreat in economic interactions and a disruption of supply chains across the continent.

In 2021, imports increased to N551.31 billion, and exports also saw a modest resurgence to N2.41 trillion.

The total trade ascended to N2.96 trillion.

Continuing the upward trend, 2022’s imports climbed to N738.26 billion and exports to N2.66 trillion, elevating the total trade to N3.4 trillion.

The latest figures from 2023 show growth, with imports at N896.05 billion and exports at N3.71 trillion, lifting the total trade to N4.61 trillion.

While Nigeria’s 2023 exports inched closer to the figure in 2019, the imports have yet to catch up, likely due to the country’s foreign exchange crisis.

Further data shows that countries under the Economic Community of West African States (ECOWAS) account for 52% of Nigeria’s trade with African countries in 2023. Nigeria’s total trade with ECOWAS countries in 2023 was N2.41 trillion, which is close to the N2.46 trillion recorded in 2019.  

The data further shows that while Nigeria has neared its pre-COVID-19 export levels to ECOWAS countries at nearly N2.24 trillion, it is yet to meet up with its import levels by about N47.51 billion. While it imported N215.79 billion in 2019 from ECOWAS countries, it imported about N168.28 billion by 2023.