However, in 2022 a huge drop to ₦781.1bn was recorded and another significant drop to ₦778.4bn was recorded in 2023.

The apex bank specifically blamed the country’s dwindling foreign trade on poor infrastructure and inefficient logistics, among other factors.

According to the report, the cost of trade in Nigeria and Ethiopia is four to five times higher than what is obtained in the United States due to insecurity, higher transportation costs, topography and poor road infrastructure.

“Studies from the Africa region consistently find spatial differences in prices of imported goods (food and non-food) as well as non-traded agricultural staples, indicating that markets are not well-integrated, and retail prices of products are affected by distance.

“For instance, trade costs are four to five times higher in Ethiopia and Nigeria than in the United States, due to poor road infrastructure, low competition in the transportation sector, and topography,” it stated.

The report further noted that the consequences of these distortions, include preference of African producers to sell locally rather than export.

Manufacturers and operators in the export ecosystem have lamented that the harsh business environment in the country is making local products uncompetitive globally.

The bank’s report comes after the Nigerian Export Promotion Council (NEPC), charged Nigerian exporters to adhere to the requirements for exporting products to different countries.

Speaking at a recent sensitisation workshop aimed at enhancing Nigeria’s export potential and strengthening trade relations with China, Executive Director of NEPC, Nonye Ayeni, emphasised the need for exporters to adhere to the General Administration of Chinese Customs (GACC).

Ayeni, who was represented by the North-Central Coordinator of the council, Samson Idowu, said that GACC has clear but stringent requirements for exporting products to China.

“Understanding the registration process, documentation and regulatory changes is paramount for successful export. Understanding the requirements set forth by GACC is crucial for Nigerian exporters to ensure smooth and successful trade with China,” she stated.

At the recent launching of the NSW project in Abuja, President Bola Tinubu stated that Nigeria currently loses about $4bn annually to import-export infractions due to bureaucratic bottlenecks, especially at the ports.

According to the president, the NSW project is expected to ensure 24-hour clearance of goods at the ports and simplify trade by providing a digital platform for all import and export-related activities.

“This initiative will link our ports, government agencies, and key stakeholders, creating a seamless and efficient system that will facilitate trade like never before. It will reduce the need to deal with multiple agencies in multiple locations to obtain the necessary papers, permits and clearances to complete their import or export processes,” Tinubu said.

Source: Channels TV