During the first half of 2024, Nigeria’s exports to France reached over ₦3.9 trillion ($2.4 billion), making France the country’s top Export destination. Compared to the overall exports to France in 2023 of ₦2.3 trillion, this is a substantial rise. According to data from the National Bureau of Statistics (NBS), Nigeria had a positive Trade balance over the same time period, with total exports of ₦38.5 trillion ($24 billion) and imports of ₦26.4 trillion ($16.5 billion). Nigeria’s top exports to France were crude oil (worth 3.2 trillion), followed by natural gas, soybean flour, floral goods and seafood (including frozen prawns).
Despite Nigeria’s ₦4.5 trillion trade deficit with China, other significant trading partners included Spain (with ₦3.39 trillion in net exports) and the Netherlands (with ₦1.7 trillion). The recent visit by Nigerian President Bola Ahmed Tinubu to France coincided with the expansion of trade between Nigeria and France. The two countries talked on enhancing economic cooperation in solid minerals, energy, agriculture, and the Blue Economy during meetings with French President Emmanuel Macron. In order to advance Economic Development and improve the Welfare of its population, President Tinubu underlined Nigeria’s potential as a centre for Foreign Direct Investment (FDI) and pointed out opportunities in important economic areas.
Country’s top export is crude oil but non-oil items have shown promise.
Trade between France and Nigeria has grown gradually over time. Crude oil made up more than 80% of Nigeria’s ₦1.7 trillion worth of exports to France in 2022. Exports reached ₦2.3 trillion by 2023, and in the first half of 2024 alone, they topped this amount at ₦3.9 trillion. This dramatic increase is consistent with rising oil costs worldwide and improved trade relations. Nigeria’s top export is crude oil, but in order to diversify commerce with France, non-oil items including soybean flour, frozen prawns, flower buds and Natural Gas have showed promise.
All of these goods together accounted for about 15% of France’s exports in 2023. To lessen an excessive dependence on oil income, efforts must be made to increase the export base. The topics of conversation between President Tinubu and President Macron during his trip to France were encouraging investments in infrastructure, renewable energy, and agriculture. Among the noteworthy achievements were France’s pledge to assist Nigeria in its transition to Renewable Energy by means of solar projects and the investigation of solid Mineral Mining partnerships. Through these alignments, Nigeria’s energy Infrastructure will be improved and foreign direct investment (FDI) will be drawn in.
Economic specialists advise Nigeria to strengthen trade partnerships.
China continues to be Nigeria’s biggest trading partner overall, but mostly as a destination for imports, resulting in an ₦4.53 trillion trade deficit. Nigeria’s commercial relations with European nations like France and Spain, on the other hand, produced significant surpluses, indicating the nation’s competitive advantage in the export of natural gas and crude oil. Notably, Nigeria’s trade portfolio has started to diversify with the export of non-crude oil products like urea and cocoa, indicating progress in lowering reliance on oil. Economic specialists advise Nigeria to strengthen trade partnerships by utilising its wealth of natural resources and strategic location in West Africa.
More so, trade expert Dr. Adewale Adebayo emphasised the significance of building infrastructure to support exports other than oil, saying, “Improving supply chains and diversifying exports can reduce vulnerabilities tied to global oil price fluctuations.” Increasing commerce with France helps Nigeria’s standing as a reliable trading partner in West Africa and may draw investments from the European Union to the area. Furthering economic integration throughout Africa, improved ties may also help Nigeria’s aspirations for leadership in regional trade blocs such as the African Continental Free Trade Agreement (AfCFTA).
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Other important export markets include the United States (₦3.16 trillion), the Netherlands (₦3.07 trillion), and India (₦3.26 trillion), where cashew nuts, chocolate, and Petroleum products made up a sizable amount of exports. With a total value of ₦5.55 trillion, African trade expanded significantly on a regional scale thanks to programs like the African Continental Free Trade Agreement (AfCFTA). Products like cocoa, rubber, and natural oils were the main exports to African countries like South Africa and Ivory Coast, demonstrating the significance of intra-African trade for Nigeria’s economy.