Economy
Nigeria’s Imports Jump 80.7% to $56bn in Six Years—WTO
By Adedapo Adesanya
Nigeria’s import levels increased by 80.7 per cent in six years, rising from $31 billion in 2017 to $56 billion in 2023, according to the latest World Trade Organization (WTO) Trade Policy Review.
This rise, according to the report, was primarily fueled by refined petroleum, which made up 38.3 per cent of the total imports.
The WTO noted that the Nigerian government’s trade and economic policies lacked consistency in the past, affecting the achievement of ambitious government goals.
The report added that some of Nigeria’s restrictive and interventionist policies seemed to counteract broader government strategies to support economic diversification and the integration of more productive manufacturing enterprises into global value chains.
The sixth Trade Policy Review of Nigeria, based on reports by the WTO Secretariat and the Government of Nigeria, emphasises the critical role of trade in Nigeria’s economic development strategy.
According to the WTO, Nigeria, with a nominal GDP of $363 billion, remains one of Africa’s largest economies, largely due to its oil and gas exports, which continue to dominate its portfolio.
“Crude oil alone accounted for 80.6 per cent of goods exports, while gas made up 10.5 per cent. Exports have risen by nearly 50 per cent over the last six years, reaching $65 billion.
“Exports of goods continue to be dominated by crude oil (80.6 per cent) as well as gas (10.5 per cent).
“Between 2017 and 2023, they increased by nearly 50 per cent to $65 billion. Services exports, about 6 per cent of all exports, are dominated by transport and travel (58.2 per cent), as well as increasingly financial services (22.9 per cent, predominantly traded digitally).
“The share of non-oil exports in total exports doubled between 2017 and 2023, consisting primarily of agricultural products, fertilizer, and metals.
“Imports also grew strongly from $31 billion to $56 billion, with refined petroleum accounting for the largest share (38.3 per cent).
“Services imports, which accounted for more than 20 per cent of total imports, are also dominated by transport and travel services (63.7 per cent of services imports), followed by other business services (20.1 per cent, predominantly traded digitally),” the report said.
The review highlights the Nigerian government’s ambitious Agenda 2050, which aims to diversify the economy and reduce reliance on oil by promoting manufacturing, linking domestic raw materials with industries, and expanding the domestic market.
The WTO said that despite these efforts, some restrictive policies seem to counter the goal of economic diversification.
“For example, the share of intermediate goods in non-oil imports fell from 44 per cent to 32 per cent between 2017 and 2023, indicating limited progress in expanding manufacturing’s contribution to the economy.
“Government strategies and policies at times seem to lack consistency and, in the past, did not fully achieve their ambitious objectives.
“Some restrictive and interventionist policies seem to counteract broader government strategies to support economic diversification and the integration of more productive manufacturing enterprises into global value chains.
“Nigeria’s trade in intermediary goods developed little between 2010 and 2021 and the share of intermediate goods in total non-oil imports declined from 44 per cent to 32 per cent between 2017 and 2023.
“FDI has continued its downward trend and virtually ceased in 2022, with few disaggregated figures available,” the report said.
The WTO explains that economic reforms have been underway in Nigeria, including the removal of fuel subsidies and a restructuring of the foreign exchange rate system.
According to the report, in 2023, Nigeria eliminated its complex multi-tiered exchange rate system, which had resulted in significant foreign exchange shortages.
“In 2023, the Government initiated important reforms regarding the foreign exchange rate, fuel subsidies, and fiscal discipline. In June, it eliminated a complex exchange rate system using multiple windows and rates which had led to significant foreign exchange (FX) shortages.
“The largely inaccessible official rate of the naira rapidly aligned with the parallel rate at which most FX transactions had effectively taken place and by March 2024, the official exchange rate had lost around 70 per cent of its value in USD terms.
“In 2023, the Central Bank of Nigeria (CBN) also removed restrictions on the use of FX for the import of 43 groups of commodities, affecting more than 900 tariff lines that had been in place since 2015.
“A price verification system for imports and exports to avoid under- or over-invoicing was in place between August 2023 and June 2024. However, some FX restrictions remain in place, including repatriation requirements,” it said.
The report added that following an earlier failed attempt in 2020, the government also removed costly and inefficient fuel subsidies in mid-2023 but established retail price caps for fuels at the end of 2023, effectively reintroducing some form of support.
“These subsidies accounted for about 15 per cent of government expenditure in 2022.
The Nigerian government also decided to end the practice of financing a significant share of its spending via overdrafts from the Central Bank of Nigeria (CBN), which had contributed to increasing debt as a share of GDP to 30 per cent.
“At below 9 per cent, the revenue-to-GDP ratio in Nigeria remains very low and the Government aims to increase it significantly by 2025.
The official exchange rate, which aligned with the parallel rate by March 2024, saw a rapid devaluation of the naira. In June 2023, Nigeria also removed longstanding foreign exchange restrictions on 43 groups of imports to ease access to foreign currency.
“These reforms were intended to create a more stable economic environment, though some foreign exchange restrictions remain, including repatriation requirements for companies.”
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
