Analysts highlights economic gains as Nigeria, France trade hits N3.9trn

Economic analysts in the country have viewed the surge in Nigeria’s exports to France which surged to N3.9 trillion in the first half of 2024, describing it as a positive indicator of Nigeria’s growing integration into global trade.

Nigeria’s exports to France surged to over N3.9 trillion (approximately $2.4 billion) in the first half of 2024, cementing France’s position as Nigeria’s largest single-country export destination.

This growth, reflected in data from the National Bureau of Statistics (NBS), underscores Nigeria’s strengthening trade ties with Europe’s second-largest economy.

During the first half of 2024, Nigeria recorded total trade exports of approximately N38.5 trillion ($24 billion), maintaining a positive trade balance with imports valued at N26.4 trillion ($16.5 billion).

Exports to France alone accounted for over 10 per cent of total exports, driven largely by crude oil.

In comparison, Nigeria’s exports to France in all of 2023 amounted to N2.3 trillion ($1.5 billion), marking a significant year-on-year increase.

Crude oil dominated the trade portfolio, contributing N3.2 trillion in the first half of 2024. Other exports included natural gas, soybean flour, frozen seafood, and floral products, showcasing diversification efforts.

Among Nigeria’s trading partners, Spain ranked second with net exports of N3.39 trillion, followed by the Netherlands at N1.7 trillion.

However, the trade balance with China showed a deficit of N4.5 trillion, highlighting challenges in Nigeria’s import-heavy relationship with the Asian giant.

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Dr. Olufemi Adebayo, an economist with the Nigerian Institute of International Trade, noted that the figures align with ongoing efforts to position Nigeria as a key player in energy and raw material supply chains.

“The consistent rise in exports to France underscores not only Nigeria’s reliance on crude oil but also opportunities for diversifying export products. Natural gas and agricultural products, for instance, have strong potential for expansion in European markets,” Adebayo said.

Sarah Oduah, a trade expert, emphasized the strategic significance of France’s energy demands aligning with Nigeria’s crude oil output. “France’s focus on energy transition and securing raw materials is creating a favorable environment for Nigeria to expand its exports,” she added.

President Bola Ahmed Tinubu’s recent state visit to France played a pivotal role in deepening economic ties. Meeting with French President Emmanuel Macron, Tinubu highlighted key areas of collaboration, including agriculture, energy, solid minerals, and the blue economy.

The visit also spotlighted Nigeria’s push for foreign direct investment (FDI), with Tinubu positioning Nigeria as a gateway for international investors in Africa.

Tinubu’s administration has prioritized leveraging such international partnerships to boost Nigeria’s economy and improve infrastructure, particularly in energy and agriculture. “The bilateral engagement reflects a strategic alignment of economic priorities between both nations,” remarked Jean-Claude Meyer, a French trade analyst.

The increased exports to France not only strengthen Nigeria’s trade position but also underscore the critical need to diversify away from oil dependency.

While crude oil remains the cornerstone of bilateral trade, stakeholders are urging more robust policies to harness Nigeria’s vast agricultural and natural resources.