Nigeria Export Trade Struggles: Federal Constraints Undermine ₦128bn State Export Investments
Nigeria’s ambition to boost non-oil exports is facing a major setback as federal-level trade bottlenecks continue to choke progress, even after states collectively spent about ₦128 billion on export infrastructure and promotion initiatives. A new BudgIT report reveals that despite increased investment in export hubs, trade missions, and special economic zones, export performance has barely improved.
According to the report titled “Subnational Trade Promotion and Export Barriers in Nigeria,” Nigeria’s trade growth has remained sluggish between 2021 and 2024. Crude oil still dominates exports at about 82 to 87 percent, while non-oil exports remain weak. Export processes have also become more expensive and slower, with processing times rising from 21 to 26 days and compliance costs increasing by 34 percent.
The report highlights a structural imbalance in Nigeria’s trade system, where states are responsible for promoting exports but lack control over key trade levers such as customs, tariffs, and port operations—all of which remain under federal authority. Exporters are forced to navigate up to 17 federal agencies and as many as 23 procedural steps, often spending between ₦180,000 and ₦450,000 per shipment before goods even leave the country.
For many businesses, the impact is severe. In Anambra, a cassava exporter who benefited from state support saw profits shrink after paying nearly ₦1.86 million in export-related charges on a ₦5 million shipment. In Kano, textile producers struggle with high input costs and port delays, while Ogun-based exporters report repeated inspections and costly packaging adjustments to meet conflicting regulations.
BudgIT warns that without stronger coordination between federal and state governments, Nigeria risks continuing to spend heavily on export promotion without achieving meaningful results. The report calls for streamlined procedures, reduced informal costs, and improved policy alignment, especially as Nigeria seeks to benefit from opportunities under the African Continental Free Trade Area (AfCFTA).
source: Business day