Olufemi Adeyemi
Nigeria's intra-Africa trade has seen a decrease, causing the country to fall to the fourth position as the biggest contributor to regional trade in 2023, following South Africa, Cote d’Ivoire, and Egypt, as stated in a report by the Africa Export-Import Bank..
Within three years of implementing the African Continental
Free Trade Area (AfCFTA) agreement, Nigeria has observed a decrease in its
intracontinental trade and a lower ranking in performance among participating
nations.
The Africa Export-Import Bank (Afreximbank) revealed in its
Africa Trade Report 2024, entitled “Climate Implications of the AfCFTA
Implementation,” that Nigeria’s proportion of total intra-African trade
decreased from 4.4 percent in 2022 to approximately 4.2 percent in 2023.
As indicated in the report, Nigeria’s intra-African trade
experienced a decline of 2.1 percent, resulting in a reduction from $8.2
billion in the preceding year to $8 billion in 2023. This places Nigeria in
fourth position, following South Africa, Cote d'Ivoire, and Egypt.
The report Indicated a decline, resulting in a slight
decrease in Nigeria’s proportion of overall intra-African trade. Specifically,
the share reduced from 4.4 percent in 2022 to approximately 4.2 percent in 2023.
“Approximately 5.1 percent of Nigeria’s exports were
directed to African countries, with Cote d’Ivoire, South Africa, and Senegal
being the top three destinations for Nigerian exports within the continent.
Nigeria’s imports from the rest of Africa remained
comparatively modest, representing less than 2.9 percent of its total imports,
as indicated in the report.
Intra-African trade experienced a moderate increase of 3.2%
in 2023, reaching a value of $192.2 billion. While this growth is notable, it
represents a deceleration compared to the previous year, when intra-African
trade expanded by an impressive 10.9%.
The Afreximbank report estimated the export potential for
intra-African trade to have exceeded $69.4 billion in 2023. This suggests that
the current level of intra-African trade could potentially increase to $261.6
billion, representing 36% of total intra-African trade, assuming all other
factors remain constant.
The report has pinpointed key products with substantial
export potential within the African continent. These products encompass
machinery, electricity, motor vehicles and their components, food products,
minerals, beauty products, chemicals, plastic and rubber, ferrous metals,
pearls and precious stones, and fertilizers.