Three years into the African Continental Free Trade Area (AfCFTA) agreement, Nigeria has experienced a decline in its intra-African trade.
The Africa Export-Import Bank (Afreximbank) reported that Nigeria’s share of total intra-African trade dropped from 4.4% in 2022 to 4.2% in 2023, with the value of its trade decreasing from $8.2 billion to $8 billion. Nigeria now ranks fourth behind South Africa, Cote d’Ivoire, and Egypt in intra-African trade performance.
Afreximbank’s Africa Trade Report 2024 highlighted that only 5.1% of Nigeria’s exports were directed to other African countries, primarily to Cote d’Ivoire, South Africa, and Senegal. Imports from the rest of Africa remained below 2.9% of Nigeria’s total imports.
Despite Nigeria’s decline, the overall value of intra-African trade increased by 3.2% to $192.2 billion in 2023, though this growth was slower compared to the previous year’s 10.9%.
The report estimated the export potential for intra-African trade at over $69.4 billion in 2023, suggesting a possible rise to $261.6 billion.
Key products with significant export potential within Africa include machinery, electricity, motor vehicles, food products, minerals, beauty products, chemicals, plastics, ferrous metals, pearls, and fertilizers.
(Vanguard)