Chinese imports of Nigerian goods jumped 81% year-on-year to $2.25 billion after both nations expanded their zero-tariff trade frameworks. The increase reflects the growing trade relationship between Nigeria and China and the benefits of the zero-tariff policy.
The jump in exports is a positive development for Nigeria’s non-oil sector. The zero-tariff framework has provided Nigerian exporters with access to the Chinese market, boosting demand for Nigerian products. Nigeria's challenge is to sustain the momentum and diversify its export base. For a Nigerian exporter, the zero-tariff policy means a more competitive price point. For the Nigerian economy, it means increased foreign exchange earnings.
The winners: Nigerian exporters, who have gained access to a large market; and the Nigerian economy, which benefits from increased exports. The losers: Chinese domestic producers, who face competition; and the Nigerian government, which must ensure the trade relationship is balanced.
Bottom Line: Nigerian exports to China are booming. Zero tariffs are working. The question is whether the momentum can be sustained.