A report by Standard Chartered and its partners has revealed that India is set to become Nigeria’s largest trade partner as the decade progresses.
The report titled “Future of Trade 2030- trends and Markets to Watch” highlighted that India will be Nigeria’s fastest and largest export corridor with exports expected to grow at an average of 12.4% yearly until 2030 and expected to reach around $112.
Exports to India are expected to reach $36 billion at the end of the decade.
Products Fueling Nigeria’s Exports
According to the report, products fueling this growth include; crude oil and natural gas, metals and agricultural produce. The report noted Nigeria’s investment in digital infrastructure and efforts to create a seamless business environment as facilitating its growth.
It noted that;
- “Driven by its Industrial Revolution Plan and National Digital Economy Policy (2020-2030), Nigeria has shifted its focus towards promoting digital transformation, financial inclusion, and physical infrastructure development with a series of billion-dollar projects. These efforts are forecasted to facilitate Nigeria’s plans for economic diversification and non-petroleum growth.”
The authors of the report noted that
- “Nigeria’s exports to India are driven by India’s growing energy demand and efforts to expand its sourcing locations, and due to strengthening trade ties between the two markets”
Nigeria’s Future Trade Partners
The report also highlighted Asia as a key trade corridor for Nigeria going forward as India, Mainland China and Indonesia will play pivotal roles in Nigeria’s foreign trade by 2030.
Other countries that will become key trade partners are Cote d’Ivoire, the United States, France, the Netherlands, Spain etc.
Commenting on Nigeria’s attractiveness to global business executives, the report noted that 14% of the 500 C-suite executives it interviewed currently or plan to source/manufacture in Nigeria within the next 5-10 years.
The report also identifies 13 markets across Asia, Africa and the Middle East that will drive much of this growth. It also highlighted Nigeria and Bangladesh as “hyper-growth markets”
The trends shaping global trade according to the report are;
- “a wider adoption of sustainable and fair-trade practices; a push for more inclusive trade, with more people participating; greater risk diversification; more digitization; and an accelerated shift towards high-growth emerging markets”.