The Nigerian Economic Summit Group (NESG) has issued a warning that the practice of rerouting exports through neighboring countries is adversely affecting Nigeria’s trade competitiveness. This issue persists even as Nigeria reported an impressive trade surplus of N7.55 trillion in the first quarter of 2026.
According to the National Bureau of Statistics (NBS), Nigeria’s total merchandise trade escalated to N34.79 trillion during this period, with exports valued at N21.17 trillion and imports at N13.62 trillion. While NESG acknowledged the encouraging nature of these figures, they emphasized that the trade surplus does not accurately reflect the underlying economic challenges.
Export rerouting, which involves transporting goods produced in Nigeria via other countries before they reach their final destinations, is depriving the country of valuable logistics income and distorting trade data. It also hampers the effective branding of Nigerian products while limiting local value retention from exports.
Key reasons why exporters resort to these alternate trade routes include inadequate quality assurance and certification systems, inefficient port operations, and burdensome export procedures. In place of supporting local exports, these factors lead to a preference for neighboring countries, which often provide the necessary certifications.
NESG urged the government to enhance local certification and quality assurance frameworks to align Nigerian products with international standards independently. With globally recognized certification becoming increasingly crucial for market access, the lack of domestic credible systems results in missed opportunities for Nigerian exporters.
Industries such as agriculture, food processing, textiles, leather, and manufacturing would significantly benefit from improved certification processes, enabling direct access to foreign markets while retaining more economic value domestically.
The group also called for reforms to address chronic inefficiencies at Nigerian ports, including congestion, excessive documentation, and high logistics costs. These logistical challenges have made neighboring ports more attractive to exporters, ultimately hindering the country’s competitiveness.
Improving port efficiency is identified as a critical strategy for enhancing Nigeria’s export capabilities within the framework of the African Continental Free Trade Area (AfCFTA) and the broader global trade landscape. NESG stressed that the focus should extend beyond simply achieving trade surpluses; it should also aim to increase domestic value capture and create more jobs, foreign exchange earnings, and industrial growth.
