The CEO of Germany’s Giessen-Friedberg Chamber of Commerce and Industry, Dr. Matthias Leder has called on the Nigerian government to enhance the Trade balance between Nigeria and Germany. Speaking at the opening of the 14th Gateway International Trade Fair in Abeokuta, Ogun State. Leder revealed that the trade volume between the two countries remains below one percent, while Africa accounts for only two percent of Germany’s international trade. He described the trade relationship as “very uneven” compared to Germany’s dealings with Brazil and China.
He emphasized that low worker productivity, high interest rates on capital (about 20%), a lack of innovation, and illegal immigration are the main obstacles to trade between Nigeria and Germany. Leder underlined the need to increase capital productivity, considering the fact that high interest rates make it difficult for small and medium-sized firms in Nigeria to get loans. He pointed to the Dual Vocational Training program, which was recently implemented in Nigeria with German aid, aimed to increase workforce efficiency and guarantee that Nigerian workers have the skills necessary to match international standards.
Shifting trade balance with a trade deficit for Germany.
While he reaffirmed Germany’s resolve to close the trade imbalance, Leder encouraged both nations to explore more opportunities to establish a fair and beneficial partnership. This renewed emphasis on trade coincides with growing recognition of the strategic significance of the partnership, with Nigeria being Germany’s second-largest economic partner in Sub-Saharan Africa. Both countries have a long history of economic partnership that dates back to the 19th century. Despite their lengthy history, both countries’ current trade levels remain modest in relation to their respective economies’ potential.
Recent figures from the Observatory of Economic Complexity (OEC) show that Germany exported €84.6 million worth of goods to Nigeria and imported €142 million worth of commodities from the West African country in November 2024. Germany had a €57.5 million negative trade deficit as a result. The figures show a change from the prior trade trend, which frequently saw Germany maintain a trade surplus with Nigeria. Over a 12-month period from November 2023 to November 2024, Germany’s exports to Nigeria grew by €11.3 million (15.5%) from €73.3 million to €84.6 million.
Declining trade volumes over the past five years.
When it comes to imports, Germany’s imports from Nigeria increased from €133 million to €142 million, a growth of €8.83 million (6.63 percent). Growing demand for manufactured goods and industrial items was a major factor in Germany’s Export growth to Nigeria. Unmanufactured Tobacco and tobacco products climbed by €986,000 (96.7 percent), while measuring and automated control instruments increased by €2.16 million (143 percent) and plastic goods by €2.87 million (124 percent).
Meanwhile, Nigeria’s exports to Germany demonstrated a greater level of diversification beyond crude oil. A longer-term perspective shows a declining trend in overall trade volumes between the two countries. Nigeria’s exports to Germany fell from $2.76 billion in 2018 to $2.04 billion in 2023, representing a 5.83% yearly reduction over the previous five years. Germany’s exports to Nigeria decreased slightly, from $1.11 billion to $1.09 billion, at an annualized rate of 0.48% during the five-year period from 2018 to 2023.
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These figures show a discrepancy even though they also show active trade. This makes trade expansion and balance essential for both countries. Increasing trade with Nigeria is in line with Germany’s larger plan to strengthen its economic relations with Africa. For German businesses looking to enter the African market, Nigeria, the continent’s largest economic and population center, offers a route. On Nigeria’s part, expanding trade with Germany could boost industrial growth, and generate employment and help reduce the country’s heavy reliance on oil exports. Additional benefits of the collaboration include greater foreign investment, capacity building, and Technology transfer.