Top Three Nigeria Export Markets You Should Know About
Updated: Jan 18
Every country transacts with other nations of the world. The transaction may be for political reasons or economical reasons. The world is now a global village. No country can afford to isolate itself by not doing business or trade with other nations of the earth. Nigeria happens to have stronger relations with some countries than others and will trade more valuable goods or resources with them. Some of these countries are India, Spain, United States of America, France, and South Africa. Others are China, the Netherlands, South Korea, Belgium, Luxembourg.
The top five countries Nigeria exports to include:
India: Nigeria exports about $10B worth of goods to India every year.
Spain: Nigeria exports about $6.12B worth of goods to Spain every year.
United States of America: Nigeria exports about $5.74B worth of goods to the USA every year.
France: Nigeria exports about $4.02B worth of goods to France every year.
South Africa: Nigeria exports about $3.87B worth of goods to South Africa every year.
The top five countries Nigeria imports from include:
China: Nigeria imports about $13.4B worth of goods from China.
The Netherlands: Nigeria imports about $5B worth of goods from the Netherlands.
South Korea: Nigeria imports about $4.76B worth of goods from South Korea.
Belgium-Luxembourg: Nigeria imports about $3.37B worth of goods from Belgium and Luxembourg.
India: Nigeria imports about $2.76B worth of goods from India.
The top three Countries Nigeria Exports To
The top three countries Nigeria exports to are India, Spain and the USA. These top three countries with Nigeria are four of the seven M74 Group target countries. M74 Group is an internationalization services startup based in the USA and Portugal that empowers businesses to go global by guiding their entry into foreign markets.
Both Nigeria and India have large populations and large gross domestic products (GDPs). Nigeria and India have a mutual kind of relationship, with both countries trading extensively in terms of importation and exportation.
Some of the products Nigeria imports to India include raw materials, consumer goods, intermediate goods, metals, hides and skins, vegetables, wood, plastic, rubber, food products, textiles and clothing, and minerals. The main products exported from Nigeria to India are crude petroleum, petroleum gas, coconuts, brazil nuts, and cashews. The main products exported from India to Nigeria were packaged medicaments, motorcycles, and cars.
At present, India is Nigeria’s largest trading partner, while Nigeria is India’s largest trading partner in Africa. India is also the largest buyer of Nigerian crude oil. There are over 135 companies owned and/or operated by Indians or Persons-of-Indian-Origin in Nigeria. There is a presence of a large Indian expatriate community of about 50,000 Indians, the largest in West Africa. Some industries where Indians have invested heavily in Nigeria include:
Hotel & tourism
Drugs & pharmaceuticals.
Important sectors according to the High Commission of India website that Nigeria and India trade in include Oil & gas industry, manufacturing, Information Communication and Technology (ICT), service sector, financial and insurance sector, mining sector, energy and power sector, healthcare sector, agriculture sector and transportation sector.
Nigeria and Spain's relationship is not widely reported on by media in other countries. This may be because the official language(s) of both countries are different. According to Nigerian website nairametrics.com, Spain took over from India as Nigeria’s top export destination in the second quarter (Q2) of 2020 with crude oil accounting for seventy percent of the trade.
In an online article published by nipc.gov.ng, the Ambassador of Spain to Nigeria, Mr. Alfonso Barnuevo Sebastian De Erico said Spain has plans to set up some manufacturing companies in Nigeria. He also said Spain's focus is now Africa, with Nigeria as the preferred destination because of Nigeria's huge market potential.
Some of the main products exported from Spain to Nigeria include refined petroleum, unglazed ceramics, and wine. The main products Nigeria exports to Spain include crude petroleum, petroleum gas, and tanned sheep hides.
According to the USA Embassy and Consulate, Nigeria and the USA first established diplomatic relations in 1960 after Nigeria's independence from the United Kingdom that same year. In April 2018, the two countries' presidents met at the USA White House to discuss how to improve the relationships between the two countries.
The USA foreign direct investment with Nigeria is concentrated largely in the petroleum/mining and wholesale trade sectors. Nigeria was the second-largest USA export destination in Sub-Saharan Africa as of 2017.
Some of the USA exports to Nigeria include wheat, vehicles, machinery, kerosene, lubricating oils, jet fuel, civilian aircraft, and plastics while Nigerian exports to the USA included crude oil, cocoa, cashew nuts, and animal feed. The top three main products exported from the USA to Nigeria are cars, refined petroleum, and wheat. The top three main products exported to the USA from Nigeria are crude petroleum, refined petroleum, and petroleum gas.
Exports from Nigeria to the USA that paid the highest import tariffs to enter the USA were bovine products. Export from the USA that paid the highest import tariffs to enter Nigeria in 2018 were tobacco products.
According to USTradeNumbers, Nigeria’s trade with the USA rose to $2.83 billion in the first eight months of 2020. As of August 2020, Nigeria is ranked number 60 among the USA’s top trade partners.
Ifeoluwa Oseni is an intern at M74, and a recent graduate from the University of Ibadan in Nigeria, where he studied Computer Science. His interests include cybersecurity, politics, and technology. He loves telling stories of positive changemakers in Africa on his blog, InterviewStories.
The views expressed above are those of the author and do not reflect the official position of the M74 Group, which remains neutral on all matters. Publishers assume no liability for content.