Nigeria’s Regional Trade Declines, Falls to 4th Place Behind South Africa, Cote d’Ivoire, Egypt

In the third year of the African Continental Free Trade Area (AfCFTA) agreement, Nigeria’s intra-continental trade has seen a significant decline, placing it fourth behind South Africa, Cote d’Ivoire, and Egypt. This information comes from the Africa Export-Import Bank (Afreximbank) in its latest Africa Trade Report 2024, titled “Climate Implications of the AfCFTA Implementation.”

According to the report, Nigeria’s share of total intra-African trade dropped to approximately 4.2 percent in 2023 from 4.4 percent in 2022. Nigeria’s intra-Africa trade value decreased by 2.1 percent, falling to $8 billion in 2023 from $8.2 billion in the previous year. This decline has contributed to Nigeria’s lower ranking in intra-African trade performance.

The report highlights that around 5.1 percent of Nigeria’s exports were directed to African countries, with Cote d’Ivoire, South Africa, and Senegal being the top destinations. However, Nigeria’s imports from other African nations remained relatively low, constituting less than 2.9 percent of its total imports.

Meanwhile, the overall value of intra-African trade increased by 3.2 percent to $192.2 billion in 2023, a slowdown compared to the 10.9 percent growth rate recorded the previous year. The Afreximbank report estimates that the export potential for intra-African trade surpassed $69.4 billion in 2023, suggesting that intra-African trade could potentially rise to $261.6 billion, representing 36 percent of total intra-African trade.

Key products with significant export potential within Africa identified in the report include machinery, electricity, motor vehicles and parts, food products, minerals, beauty products, chemicals, plastic and rubber, ferrous metals, pearls and precious stones, and fertilizers.