Nigeria’s Trade Position Makes Slight Improvement in Q1 of 2025

According to the report from the Nigeria Bureau of Statistics (NBS) for the first quarter of 2025, the All Products Terms of Trade (ToT) Index experienced a slight increase of 0.05 percentage points, suggesting a minor enhancement in Nigeria’s trade position.

Conversely, the All-Commodity Group Import Index saw a decrease of 0.26 percentage points, primarily attributed to declining prices of chemical products, raw hides and skins, base metals, and machinery. In a similar vein, the All-Commodity Group Export Price Index dropped by 0.21 percentage points, indicating weaker prices for plastics and rubber, wood products, textiles, and vegetable oils.

Regionally, the export price index decreased by 0.21 percentage points, influenced by lower prices for exports to Asia and Oceania. Likewise, the import index also fell by 0.26 percentage points due to diminished import prices from Asia. Key export destinations included India, the Netherlands, the United States, France, and Spain. The decline in export prices highlighted Nigeria’s susceptibility to global commodity cycles and its limited capacity for value addition.

To mitigate this issue, the government should focus on diversifying exports, investing in trade infrastructure, promoting regional trade through the AfCFTA, and supporting value-added processing. Additionally, enhancing market intelligence and reducing export costs will improve competitiveness and foster trade resilience.