Economic think tank warns Asia trade gap, missed China tariff policy threaten growth despite record surplus, urges structured partnerships

The Nigerian Economic Summit Group (NESG) has raised concerns over persistent structural challenges in Nigeria’s foreign trade sector, even as the country posted a significant ₦7.55 trillion trade surplus in the first quarter of 2026. The NESG made this disclosure in Lagos on Saturday, citing new figures from the National Bureau of Statistics (NBS) showing a 341 percent jump from ₦1.71 trillion recorded in the previous quarter.

According to NESG’s latest foreign trade review, major imbalances in Nigeria’s international commerce are limiting the nation’s capacity to maximise its export potential and derive full value from global markets. The group identified export rerouting—where Nigerian goods are channelled through third countries before reaching final destinations—as a major constraint to sustainable trade growth.

The NESG noted that while Asia accounted for 55.5 percent of Nigeria’s merchandise imports in Q1 2026, the continent absorbed only 30.3 percent of Nigerian exports within the same period. This mismatch, according to the group, highlights the urgent need for more structured export partnerships with key Asian economies such as China and India if Nigeria is to balance its trade relations and secure better market access for local producers.

In its report, NESG pointed out that China’s recent introduction of a two-year non-reciprocal tariff-free policy for African exports presents a significant opportunity for Nigerian manufacturers and agro exporters. However, the group warned that Nigeria was not included in the initial batch of beneficiaries announced last month, meaning local producers risk missing out on tariff savings and expanded market access unless government agencies act swiftly to engage Chinese authorities.

The NESG urged policymakers to address these structural issues by improving export documentation processes, reducing bureaucratic bottlenecks at ports, and facilitating direct shipping links to major Asian markets. “Maximising our trade surplus requires more than headline figures—it demands reforms that ensure Nigerian goods reach buyers directly and benefit from available incentives,” the report stated.

Stakeholders in the manufacturing sector have echoed NESG’s call for urgent action, warning that continued reliance on rerouted exports could erode Nigeria’s competitive edge under emerging continental agreements like the African Continental Free Trade Area (AfCFTA). The NESG concluded by recommending targeted negotiations with China and India to secure improved market access for key Nigerian exports ahead of future tariff policy reviews.

Source: https://guardian.ng/business-services/nesg-flags-export-rerouting-as-major-trade-growth-constraint/