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Nigeria lags behind South Africa, Ivory Coast and Egypt in intra-African trade

A report by the Africa Export-Import Financial institution exhibits that Nigeria would be the fourth largest contributor to intra-Africa commerce in 2023 after South Africa, Ivory Coast and Egypt.

The Africa Commerce Report 2024, titled ‘Local weather Implications of the AfCFTA Implementation’, exhibits that Nigeria’s intra-African commerce fell by 2.1 p.c to $8 billion in 2023, in comparison with $8.2 billion within the earlier yr.

“This led to a marginal decline within the nation’s share of whole intra-African commerce in 2023, from 4.4 p.c in 2022 to about 4.2 p.c. Regardless of this, Nigeria remained the fourth largest intra-African buying and selling nation that yr. About 5.1 p.c of Nigeria’s exports are directed to African international locations, with Cote d’Ivoire, South Africa and Senegal being the highest three locations for Nigerian exports throughout the continent. Nigeria’s imports from the remainder of the continent remained comparatively low, constituting lower than 2.9 p.c of whole imports,” the report stated.

In line with the Nationwide Bureau of Statistics’ Overseas Commerce Report for the final quarter of 2023, Nigeria’s high 5 buying and selling companions by way of imports had been Singapore with items price N5.09 trillion or 36.09 p.c, China with N2.06 trillion or 14.61 p.c, Belgium with N1.14 trillion or 8.09 p.c, India with N908.59 billion or 6.44 p.c and the US of America with items price N512.99 billion or 3.64 p.c.

The worth of imports from the highest 5 international locations amounted to N9.72 trillion.

In 2023, the worth of intra-African commerce elevated by 3.2 p.c to $192.2 billion, in comparison with development of 10.9 p.c within the earlier yr.

The Afreximbank report additionally exhibits that the export potential for intra-African commerce will exceed US$69.4 billion by 2023.

“This projection has the potential to considerably improve the present stage of intra-African commerce to $261.6 billion, which hypothetically represents 36 p.c of whole intra-African commerce, assuming all different situations stay fixed.

“The merchandise exhibiting the best export potential from Africa to Africa embrace equipment, electrical energy, motor autos and elements, meals merchandise, minerals, magnificence merchandise, chemical substances, plastics and rubber, ferrous metals, pearls and treasured stones and fertilizers,” it was acknowledged.

The report exhibits that the implementation of the African Continental Free Commerce Settlement since its entry into drive on 1 January 2021 has boosted intra-African commerce in 2023.

AfCFTA is a commerce settlement primarily based on legally enforceable and reciprocal tariff schedules and concessions, with agreed guidelines of origin and customs documentation inside Africa.

In 2023, three extra international locations ratified the treaty, bringing the full to 47.

The seven international locations that haven’t but ratified the treaty are Benin, Liberia, Libya, Madagascar, Somalia, South Sudan and Sudan.

Eritrea stays the one African Union member state but to signal the settlement. Negotiations on the Protocol on Commerce in Items reached main milestones in 2023. To this point, 48 tariff concessions have been submitted by international locations, representing 87 p.c of African Union members.

In the meantime, the report indicated that Nigeria was vulnerable to dropping $30 billion of its gross home product resulting from divestment from fossil fuels.

Given the issues about local weather change and the necessity to cut back the usage of fossil fuels, Afreximbank was involved concerning the implications of this, as most African international locations depend on fossil fuels to satisfy their fundamental power wants and as a supply of export income.

“For main oil-exporting international locations, together with Algeria, Angola, Equatorial Guinea, Gabon, Nigeria and Congo Republic, fossil fuels additionally characterize the principle supply of export revenues and financial revenues, employment, fossil-fuel-based power era/provide, and powering fossil-intensive industries. For instance, divesting from fossil fuels may cut back GDP by as a lot as $30 billion in Nigeria, $22 billion in Algeria, $19.3 billion in Angola and $190 billion for the continent as an entire,” it famous.

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