TRADE DEFICITS EVEN WITH OUR NEIGHBOURS
Perhaps, the worst of this situation is that even with our closest neighbours, we manage to perform poorly
in trade. Within the ECOWAS sub-region, Nigeria as the largest economy continues to struggle against
the likes of Cote d‘Ivoire and Benin. Nigeria‘s neighbours are cashing in on our free import economy to
push goods and contrabands into the country.
To address this situation, Nigeria must first look to become a global player and revisit some of the past
agreements on the free movement of goods and services in the sub-region.
Secondly, there is a need to invest massively on research and development, and strategic use of
ambassadors to promote Nigerian products. Finally, there is the need for a strong organized private sector
(OPS).
Other measures include putting in place measures to combat environmental threats and respond to
various business prospects. Signing agreements and organizing seminars cannot be a priority at this
moment in time for this country.
There also has to be a drive to increase the effectiveness and relevance of the managerial cadres in this
country with respect to exports – business managers in Nigeria must develop their knowledge and
understanding of exports.
COUNTRIES IMPORTING LESS AND EXPORTING MORE
How are others making it?
We have seen global players in the course of our research activities – and they are mainly in the EU,
Americas and the Asians – come up with strategies to either close their economy for some years or
outright refusal to take finished goods from Africa due to our weak technological know-how or non-
compliance with the rules, but they are ever ready to take raw produce or even crude oil at rock bottom
prices, process and re-export back finished products to Nigeria.
What are reasons why we are in deficit?
Some statistics might explain this better.
1. Brazil is 9.5 times the size of Nigeria in terms of physical size; with a population of 206 million, the
contribution of the manufacturing sector to the GDP is 20%. The export activities is 56% of all goods and
services produced and the per capita income is $10, 000.00. This is where Sugar cane is turned to Sugar
and we are happy to import into Nigeria what can be produced here in Nigeria. The question is, is Brazil in
deficit?
2. Malaysia has a population of 30 million, roughly the size of Lagos to Asaba. In Malaysia, the contribution
of manufacturing to the GDP is 26%, export 76%, and the Per capita income is $12,000. In 1964, Malaysia
took palm seedlings from Edo State (NIFOR) and today, Nigeria is importing palm produce and soaps from
Malaysia.
3. Thailand with a population of 68 million covers an area half the size of Nigeria. Manufacturing to the
GDP is 38%, export 85% and the per capita income is $6,000. This is where we import rice from.