Three years into the African Continental Free Trade Area (AfCFTA) agreement, Nigeria’s performance in intra-African trade has notably declined, reflecting challenges in maintaining its competitive edge.
According to the Africa Trade Report 2024 by the African Export-Import Bank (Afreximbank), titled “Climate Implications of the AfCFTA Implementation,” Nigeria’s share of intra-African trade decreased to approximately 4.2 percent in 2023, down from 4.4 percent in 2022.
The report highlighted that Nigeria’s intra-African trade value fell by 2.1 percent, dropping to $8 billion in 2023 from $8.2 billion the previous year.
This decline positions Nigeria fourth in intra-African trade rankings, trailing behind South Africa, Côte d’Ivoire, and Egypt.
“Approximately 5.1 percent of Nigeria’s exports were directed to African countries, with Côte 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 stated.
In contrast, the overall value of intra-African trade saw an increase of 3.2 percent, reaching $192.2 billion in 2023. However, this growth rate is a slowdown from the 10.9 percent increase recorded in the previous year.
Afreximbank’s report 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 rise to $261.6 billion, constituting 36 percent of total intra-African trade, assuming favorable conditions.
The report also identified key products with significant export potential within Africa, including machinery, electricity, motor vehicles and parts, food products, minerals, beauty products, chemicals, plastics and rubber, ferrous metals, pearls and precious stones, and fertilizers.
This shift underscores the need for Nigeria to reassess and enhance its trade strategies within the continent, leveraging the AfCFTA to regain and expand its market share.
