Trading Next Door: Why Intra-African Exports Remain a Challenge for Nigeria
Nigeria’s exporters are grappling with the paradox of proximity: trading within Africa is proving more complex and expensive than shipping goods to Europe or Asia. Despite the promise of the African Continental Free Trade Area (AfCFTA), the National Bureau of Statistics (NBS) reports that exports to Africa accounted for just 12.13% (N2.49 trillion) of Nigeria’s total exports in the third quarter of 2024, compared to 45.07% (N9.23 trillion) to Europe and 25.31% (N5.18 trillion) to Asia.
Countries within the Economic Community of West African States (ECOWAS) received N1.54 trillion in exports, with Ivory Coast, South Africa, and Togo as leading destinations. Yet, these figures pale in comparison to Spain, Nigeria’s top export market, which accounted for 11.07% (N2.27 trillion) of total exports.
For small and medium enterprises (SMEs), which dominate Nigeria’s economic landscape, trading within Africa is fraught with hurdles. “It’s easier to send products to Europe or the US than to our African neighbours,” lamented Bosun Solarin, CEO of Dasun Integrated Farms. “I’ve shipped goods to Liverpool in 24 hours, but getting items to Ghana can take a week due to delays and high costs.”
Solarin described the logistical nightmare of overland transport through West Africa, where poor infrastructure and border inefficiencies create costly delays. Her experience mirrors that of Olaronke Olajide, Creative Director of JeriHouse of Design, who recounted a failed attempt to ship goods to Mozambique: “It felt like navigating a war zone. The item never even arrived.”
A Tale of Two Trade Realities
While petroleum oils dominate Nigeria’s exports to Africa—making up 74.99% (N1.86 trillion) of the total—the products championed by MSMEs, such as ready-to-wear clothing, shea butter, and spices, are often sidelined. According to the Nigeria AfCFTA Coordination Office, this disconnect underscores the exclusion of smaller exporters from the formal trade landscape.
“We are the backbone of local production,” said Olajide, “but our contributions are absent from official trade discussions.”
The challenges extend beyond logistics. Peter Njoku, Deputy Director of Market Access at the Nigerian Export Promotion Council, highlighted non-tariff barriers and currency disparities as major obstacles. “There’s no single currency for trade within Africa, unlike the euro or dollar,” he explained. “Different countries have specific, often opaque regulations that complicate transactions.”
A Call for Reform
Exporters and stakeholders are urging swift action to streamline trade policies under the AfCFTA framework. Njoku stressed the importance of implementing a common currency and reducing regulatory ambiguities to foster intra-African trade.
Solarin called for targeted support for MSMEs, arguing that “If trading within Africa remains this cumbersome, exporters will continue looking outward, even when opportunities are right next door.”
With Nigeria’s exports making up 58.27% of total trade, the untapped potential within Africa is immense. Stakeholders agree: overcoming these barriers could transform Nigeria’s trade performance and unlock the promise of AfCFTA for millions of local producers.
