Muhammed Abubakar, Reporting
NIGERIA’S economic engagement with other African nations is gathering significant momentum, with intra-African trade rising by 21 per cent to $9.02 billion in 2025, up from $7.47 billion recorded the previous year, according to the 2026 African Trade Report by the African Export-Import Bank (Afreximbank).
The development has renewed optimism within the business community that Nigeria could leverage the African Continental Free Trade Area (AfCFTA) to expand its export base, strengthen non-oil trade and position local businesses to compete more effectively in the continental market.
Non-Oil Exports Driving Growth
The figures show that Nigeria’s growing trade relationship with African countries is being driven increasingly by the movement of non-oil products alongside the country’s traditional crude oil exports. According to the report, Nigeria’s export performance was supported by products including chemicals, plastics, rubber products, processed agricultural commodities, food products, urea and cement.
The development is significant as the Federal Government continues its efforts to diversify the nation’s economy away from excessive dependence on crude oil revenue. For decades, crude oil has dominated Nigeria’s export earnings, leaving the economy vulnerable to fluctuations in global oil prices and production disruptions. The increasing participation of non-oil products in regional trade, therefore, represents a potentially important shift in the country’s trade structure.
Export Activity Shows Positive Trajectory
The latest figures come against the backdrop of improved export activity recorded in recent months. Available data showed that Nigeria’s export value increased from $171.76 million in March to $274.83 million in April and further to $275.90 million in May.
Export container traffic also recorded a substantial increase, rising from 2,847 containers in March to 6,144 containers in April, reflecting stronger activity among exporters and increased movement of goods through Nigeria’s ports and trade corridors.
For manufacturers and exporters, the development offers an opportunity to tap into the vast African market, particularly as businesses seek alternatives to the traditional dependence on the domestic market.
Economic Headwinds Persist
However, the business environment remains challenging. The Central Bank of Nigeria (CBN) has continued to adopt a cautious approach to monetary policy, with Governor Olayemi Cardoso indicating that decisions on interest rates would be guided by economic data, inflation trends and global economic uncertainties.
The position has attracted close attention from the organised private sector, as the cost of borrowing remains a major concern for manufacturers, traders and small and medium-sized enterprises. High interest rates increase the cost of financing production, purchasing raw materials and expanding business operations, while also limiting the ability of many small businesses to access affordable credit.
The foreign exchange market has also remained a key factor affecting the cost of doing business. Continued pressure on the naira has raised the cost of imported machinery, raw materials and finished goods, with businesses warning that exchange-rate instability could further increase production costs and consumer prices.
Government Initiatives to Boost Trade
In a related development, the Federal Government has launched a $500 million agricultural investment fund targeting the Niger Delta, with a focus on food production, aquaculture, palm oil and marine resources. The initiative is expected to attract private investment into the agricultural sector, strengthen local value chains, create employment opportunities and contribute to the country’s food security drive.
The government has also introduced fiscal and trade policy measures aimed at reducing import duties on selected goods. The tariff adjustments are expected to influence the cost of imported inputs and equipment, while potentially improving the competitiveness of businesses that depend on imported machinery and production materials.
However, economic experts and industry stakeholders have consistently stressed the need for a balanced trade policy that protects local manufacturers without creating unnecessary barriers to legitimate trade. They argue that Nigeria’s long-term trade success will depend on its ability to produce goods that meet international standards and compete on quality and price.
AfCFTA Presents Unprecedented Opportunity
With the AfCFTA creating a continental market of more than one billion people, Nigerian businesses have been presented with an unprecedented opportunity to expand their customer base beyond the country’s borders. The agreement, which seeks to progressively eliminate tariffs and reduce barriers to trade among African countries, is expected to increase intra-African commerce and promote regional value chains.
For Nigeria, Africa’s largest economy and one of its biggest consumer markets, the potential benefits are significant. The country has a large manufacturing base, a huge agricultural sector and a growing number of entrepreneurs who could benefit from access to new markets across Africa.
Infrastructure and Logistics Challenges Remain
However, stakeholders say Nigeria must address persistent challenges including poor infrastructure, unreliable electricity supply, high logistics costs, limited access to affordable finance, congestion at ports and bureaucratic delays at borders.
They also called for improved trade facilitation and stronger support for exporters, particularly small and medium-sized enterprises that may lack the financial capacity and technical knowledge required to access international markets.
As Nigeria’s intra-African trade continues to grow, attention is now shifting to how the country can sustain the momentum and convert increased trade volumes into stronger economic growth, job creation and improved living standards.
A Test of Nigeria’s Economic Capacity
The latest $9.02 billion trade figure, therefore, represents more than an increase in commercial exchanges. It is also a test of Nigeria’s capacity to harness the AfCFTA opportunity, diversify its export earnings and build a stronger, more competitive economy driven by production rather than dependence on crude oil.
For the business community, the message is clear: Africa is becoming an increasingly important market, and Nigerian companies that can produce competitively, meet quality standards and navigate the continent’s emerging trade framework stand to benefit significantly from the next phase of African economic integration.
