Nigeria’s intra-Africa trade saw a remarkable 195 percent Year-on-Year increase in the second quarter of 2024, reaching N2.911 trillion, up from N985.17 billion in the same period last year. This growth is largely attributed to enhanced market access under the African Continental Free Trade Area (AfCFTA).
According to the National Bureau of Statistics (NBS), this intra-Africa trade now represents 9.13 percent of Nigeria’s total foreign trade, which stood at N31.9 trillion in Q2’24, compared to 7.73 percent of N13.001 trillion in Q2’23. On a Quarter-on-Quarter basis, trade with other African nations rose by 10.3 percent from N2.639 trillion in Q1’24.
David Adonri, Vice Chairman of Highcap Securities, noted that the surge in trade may stem more from an increase in imports, driven by a shortage of consumer goods and the opening of borders, rather than a significant rise in exports. He emphasized that ongoing security challenges from banditry and terrorism continue to impact the productive economy.
Conversely, Mercy Okon, Senior Analyst at Parthian Partners, highlighted that some companies are already reaping the benefits of the AfCFTA, which aims to bolster intra-Africa trade. Nigerian firms like Dangote Cement, Nigerian Breweries, Flour Mills of Nigeria Plc, and Guinness Nigeria have gained from improved market access and reduced tariffs during this period.