Just three years into the African Continental Free Trade Area agreement, Nigeria has seen a decline in its intra-continental trade and its performance ranking among nations.
The Africa Export-Import Bank, in its Africa Trade Report 2024 titled ‘Climate Implications of the AfCFTA Implementation’, revealed that Nigeria’s share of total intra-African trade decreased to approximately 4.2 percent in 2023 from 4.4 percent in 2022.
According to the report, Nigeria’s intra-Africa trade fell by 2.1 percent, dropping to $8 billion in 2023 from $8.2 billion the previous year, placing Nigeria fourth behind South Africa, Cote d’Ivoire, and Egypt.
“This decline led to a marginal reduction in Nigeria’s share of total intra-African trade, which dropped from 4.4 percent in 2022 to about 4.2 percent in 2023,” the report stated.
“Approximately 5.1 percent of Nigeria’s exports were directed to African countries, with Cote d’Ivoire, South Africa, and Senegal being the top three destinations for Nigerian exports within the continent.
Nigeria’s imports from the rest of Africa remained relatively low, accounting for less than 2.9 percent of its total imports,” the report added.
Meanwhile, Afreximbank noted that the value of intra-African trade grew by 3.2 percent to $192.2 billion in 2023, although this growth was slower compared to the 10.9 percent rate recorded the previous year.
The report also estimated the export potential for intra-African trade to have surpassed $69.4 billion in 2023, suggesting that the current level of intra-African trade could potentially increase to $261.6 billion, constituting 36 percent of total intra-African trade, all things being equal.
Key products with significant export potential within Africa identified by the report include machinery, electricity, motor vehicles and parts, food products, minerals, beauty products, chemicals, plastic and rubber, ferrous metals, pearls and precious stones, and fertilizers.
