Economic Reforms: Exports Now Account for 61% of Nigeria’s Foreign Trade

As a result of the economic reforms embarked upon by the administration of President Bola Ahmed Tinubu, Nigeria’s export profile now accounts for approximately 61% of the country’s foreign trade.

This was revealed by Vice President Kashim Shettima during the ongoing 3rd National Conference on Non-Oil Export tagged “Promoting Non-Oil Export for Rapid National Economic Growth.” organized by the Nigerian Export Promotion Council in Abuja on Tuesday.

President Tinubu’s Trade Policies

On assumption of office in 2023, the current administration rolled out a series of initiatives to boost the country’s trade sector and help significantly increase the contribution of the trade sector to GDP, and in the process grow Nigeria’s share of global trade.  A major part of that initiative was to increase the volume of the country’s non-oil exports.

Trade Policies Bearing Fruits

The government’s efforts to revitalize the country’s trade sector are already bearing fruits with exports in Q2, 2024 accounting for 60.89 percent, or N19.42tn, of total trade, representing a slight increase of 1.31 percent from N19.17tn in the first quarter of 2024, and a 201.76 percent rise from N6.44tn in the second quarter of 2023.

According to the vice president who was represented by the Deputy Chief of Staff Senator Ibrahim Hadejia

“With the trade policy, we aim to significantly increase the contribution of the trade sector to GDP and grow Nigeria’s share of global trade. It is encouraging to report that Nigeria’s total external trade achieved a surplus of N6.5tn in Q2 2024, with exports comprising 60.89 percent, or N19.42tn—marking a 1.31 percent rise from Q1 and a 201.76 percent increase from Q2 2023.”

On the Path to Achieving a Sustainable Trade Surplus

A country is said to have achieved a trade surplus if its exports are more than its imports within a specific period. This is what Nigeria seeks to achieve by diversifying its export profile and reducing its reliance on oil exports.

In Q2, 2024, Nigeria’s trade surplus grew to N6.95tn as a result of the country’s strong export performance. This strong export performance the NBS states led to a growth in Nigeria’s foreign exchange earnings and an injection of much-needed foreign exchange into the country’s reserves.

Need For Sustained Pressure

Shettima notes that there is a need for Nigeria to sustain its gains and guard itself against becoming a dumping ground for other countries while also highlighting the need for Nigeria and Africa at large to take advantage of the volume of global trade which is expected to be worth global trade is  $32tn by the end of 2024.

Reiterating the current administration’s commitment to Nigeria’s economic growth, he stated:

“This administration is committed to positioning Nigeria as an economic force by fostering policies that promote locally made products, enhance market access, increase competitiveness in international markets, and stimulate job creation.”

 

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