Analysts have urged Nigeria’s fiscal and monetary authorities to adopt strategic policies aimed at enhancing domestic production and reducing reliance on imports. This follows a recent trade report from the National Bureau of Statistics (NBS) which revealed an 81.3% year-on-year increase in foreign trade to NGN35.16 trillion in Q3 2024, driven largely by the naira’s 59.1% depreciation against the dollar. Despite this nominal growth, trade volume in dollar terms dropped by 25.8% due to declining exports (-19%) and imports (-34%), primarily influenced by weaker oil prices, high tariffs, and naira depreciation.
Experts highlighted key constraints, including high transportation costs, regulatory bottlenecks, and forex liquidity challenges, which negatively impact non-oil exports and agricultural production. NECA’s Director-General called for foreign exchange market reforms, security improvements, and enhanced port efficiency to reduce transaction costs. Economist Dr. Muda Yusuf stressed that over-regulation and climate-related disruptions are eroding business profits and deterring investments, particularly in agriculture and manufacturing.
Looking ahead, analysts anticipate increased domestic crude oil production and reduced petroleum imports but caution that weaker oil prices and subdued non-oil imports may limit overall trade growth. To boost foreign trade, stakeholders recommended fostering private-sector-led infrastructure development, advancing AfCFTA implementation, and expediting certification processes to enhance Nigeria’s export competitiveness.
