Exporters and stakeholders in Nigeria have raised significant concerns about the difficulties of trading within Africa, citing logistical and policy hurdles that often make trading with other continents easier and more cost-effective.
According to the National Bureau of Statistics (NBS) report on Foreign Trade in Goods for the third quarter of 2024, exports to Africa accounted for only 12.13% (N2.486tn) of Nigeria’s total exports. In comparison, exports to Europe and Asia represented 45.07% (N9.23tn) and 25.31% (N5.18tn), respectively.
Disparities in Export Destinations
Exports to ECOWAS countries, such as Ivory Coast (N662.71bn), South Africa (N621.68bn), and Togo (N574.93bn), paled in comparison to those to Spain, Nigeria’s top export location, at N2.27tn (11.07%). Other non-African countries, including the United States (N1.67tn), France (N1.59tn), and Italy (N1.37tn), collectively accounted for 40.79% of total exports.
Logistical Challenges and High Costs
Small and medium enterprises (SMEs) report that trading within Africa is fraught with logistical challenges. Bosun Solarin, CEO of Dasun Integrated Farms Limited, shared her frustration:
“You can get goods to Europe or the US cheaper than to other African countries. Sending goods to Liverpool takes 24 hours, but it can take seven working days to Ghana.”
Solarin’s experience traveling by road from Dakar to Lagos also highlighted infrastructural and border delays, which she described as “disheartening.”
Similarly, Olaronke Olajide, Creative Director of JeriHouse of Design, recounted difficulties in exporting to Mozambique, describing the experience as a “war zone” that ultimately failed to deliver the goods.
MSMEs and Product Representation in Exports
NBS data reveals that Nigeria’s top exports to Africa are dominated by petroleum oils (74.99%), natural gas, and electrical energy. However, MSMEs, particularly those led by women and youth, primarily export ready-to-wear clothing, shea butter, spices, and palm oil—products often excluded from large-scale trade agreements.
Olajide lamented this disconnect:
“We are the backbone of local production, but it feels like our products don’t feature prominently in official trade discussions.”
Policy and Currency Barriers
Deputy Director of Market Access at the Nigerian Export Promotion Council, Peter Njoku, cited non-tariff barriers, regulatory complexities, and currency disparities as major obstacles. He called for the accelerated implementation of the African Continental Free Trade Area (AfCFTA) and the adoption of a common African trade currency to simplify transactions.
Njoku noted,
“While trading with other regions involves clear rules and guidelines, intra-African trade is plagued by unanticipated regulations that create uncertainty for exporters.”
Call for Change
Exporters unanimously advocate for streamlined trade policies, reduced logistical bottlenecks, and better MSME inclusion in AfCFTA frameworks. Bosun Solarin stressed the urgency:
“If trading within Africa remains this cumbersome, we might continue looking outward, even when opportunities lie next door.”
Addressing these challenges, stakeholders believe, could unlock the full potential of Nigeria’s exports within Africa, fostering regional trade growth and economic integration.
