Nigeria has maintained its position as the fourth-largest contributor to intra-Africa trade in 2023, according to the Africa Trade Report 2024. The report indicates a slight decline in Nigeria's intra-Africa trade volume, totaling $8 billion compared to $8.2 billion the previous year. Despite this decrease, Nigeria continues to account for a significant share of 4.2% in total intra-African trade.
Top destinations for Nigerian exports within Africa include Cote d'Ivoire, South Africa, and Senegal, underscoring strong trade relationships despite relatively low imports from other African countries, which constitute less than 2.9% of Nigeria's total imports.
The report highlights a regional increase in intra-Africa trade by 3.2% to $192.2 billion in 2023, driven by the implementation of the African Continental Free Trade Agreement (AfCFTA) since January 1, 2021. This agreement has facilitated greater economic integration and trade cooperation across the continent, supporting the potential for expanded intra-African trade.
Significant export opportunities are projected within intra-African trade, particularly in sectors such as machinery, motor vehicles, food products, minerals, and more, reflecting a positive outlook for trade growth.
Challenges remain, including pending ratifications and ongoing negotiations under the AfCFTA framework. While 47 countries have ratified the agreement, seven are yet to do so, with Eritrea remaining the sole non-signatory member.
Concerns about Nigeria's economic diversification efforts are also noted, particularly regarding potential impacts from reducing reliance on fossil fuels. The transition to sustainable energy sources could affect Nigeria's GDP, highlighting the need for balanced economic strategies.
As Africa continues to navigate these challenges, initiatives under AfCFTA are poised to strengthen regional economic resilience and promote sustainable development.
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