Nigeria imports have risen by 81 per cent, reaching $56 billion in 2023, mainly due to demand for refined petroleum, according to the WTO.
Despite ambitious plans to diversify its economy, the WTO notes that inconsistent policies may be slowing progress in reducing the country’s dependence on oil.
Nigeria’s import levels have risen sharply, increasing by 80.65% from $31 billion in 2017 to $56 billion in 2023, according to a recent World Trade Organization (WTO) report.
Refined petroleum largely drove this growth, accounting for 38.3% of total imports.
However, the WTO report highlights challenges in Nigeria’s trade and economic policies.
It notes that some restrictive policies have hindered government efforts to diversify the economy and develop the manufacturing sector.
Despite these obstacles, Nigeria remains one of Africa’s largest economies.
Crude oil and gas dominate exports, with crude oil alone accounting for 80.6% of goods exports, while gas contributes 10.5%.
Moreover, non-oil exports, led by agricultural products, fertiliser, and metals, have doubled since 2017.
In response to these challenges, the government’s Agenda 2050 aims to reduce Nigeria’s reliance on oil by expanding manufacturing and connecting domestic industries with raw materials.
Yet, progress has been limited.
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For instance, intermediate goods in non-oil imports fell from 44% to 32% over the six-year period, signalling slow development in manufacturing.
Additionally, economic reforms in 2023 included the removal of fuel subsidies and a restructuring of the foreign exchange system, which allowed the official exchange rate to align with the parallel rate.
Furthermore, the WTO highlights Nigeria’s commitment to regional trade partnerships, including the AfCFTA, though regulatory updates remain needed.
Overall, while recent reforms reflect Nigeria’s efforts to stabilise its economy, the WTO underscores the importance of consistent policies to support long-term growth and strengthen Nigeria’s role in global trade.
