When it comes to foreign exchange and trading, Nigeria is renowned in the international market for its primary product, Crude oil. The significance of this lies in its role as a substantial source of revenue for the nation, often regarded as its prized asset.
To illustrate, in 2021, Nigeria’s exports of crude oil to the United Kingdom amounted to $1.02 billion, according to the United Nations COMTRADE database on international trade.
Image Credit: DC Velocity
Nonetheless, it’s essential to acknowledge that Nigeria exports a range of other products to foreign markets that shouldn’t be overlooked. These include cocoa, fertilizers, sesame, ginger, cashew nuts, natural rubber, cotton, leather, rice, dried cassava flour, palm kernel oil, textiles, frozen prawns, plantains, tomatoes, and more.
These items collectively constitute Nigeria’s non-oil exports and contribute significantly to the nation’s global trade presence, extending beyond just crude oil.
During the presentation of the executive summary of the Nigerian Export Promotion Council’s activities and the performance of non-oil exports in 2022, the NEPC Executive Director announced that the country achieved a remarkable milestone. In 2022, Nigeria generated a non-oil export revenue of US$ 4.820 billion, marking a remarkable 39.91% increase compared to 2021.
The report also highlighted that a diverse range of 214 non-oil products, including manufactured goods, semi-processed items, solid minerals, and raw agricultural products, were successfully exported during the year.
Let’s delve into some key statistics regarding Nigeria’s Exports
- In 2021, Nigeria’s total exports to the United Kingdom amounted to $1.34 billion. The primary exports to the UK included Crude Petroleum ($1.19 billion), Refined Petroleum ($48 million), and Scrap Vessels ($47.6 million).
- Over the past 26 years, Nigeria’s exports to the United Kingdom have seen consistent growth, with an annualized rate of 6.73%, climbing from $246 million in 1995 to $1.34 billion in 2021.
- In 2021, Nigeria held a global ranking of 126 in the Economic Complexity Index (ECI) with a score of -1.56 and stood at 52nd place in terms of total exports, which reached $57.7 billion.
- In the first half of 2022, the non-oil sector boosted the Nigerian economy by over $2 billion, marking a remarkable 64.23% growth compared to the previous year.
The trade and exchange relationship between the UK and Nigeria has strengthened over the years. According to data from the ONS and Home Office, the total trade in goods and services (exports and imports) between the two countries reached £6.9 billion in the four quarters ending in Q2 2023, reflecting an 18.5% increase (£1.1 billion) in current prices compared to the same period in 2022.
Out of this total, Nigerian exports to the UK amounted to £2.9 billion in the four quarters ending in Q2 2023, indicating a 30.0% increase (£670 million) in current prices, compared to the four quarters ending in Q2 2022.
Furthermore, statistics reveal that Nigeria ranked as the UK’s 38th largest trading partner in the four quarters ending in Q2 2023, accounting for 0.4% of the total UK trade. In 2021, the UK received £806 million in foreign direct investment (FDI) from Nigeria.
Here’s an extensive compilation of Nigerian non-oil exports to the UK in 2021, sourced from the United Nations COMTRADE report.
| NON-OIL EXPORTS | VALUE |
| Ships, boats, and other floating structures | $47.59M |
| Aircraft, spacecraft | $15.91M |
| Beverages, spirits and vinegar | $4.20M |
| Bird skin, feathers, artificial flowers, human hair | $2.16M |
| Optical, photo, technical, medical apparatus | $1.78M |
| Tobacco and manufactures tobacco substitutes | $1.68M |
| Plastics | $1.15M |
| Coffee, tea, mate and spices | $659.28K |
| Milling products, malt, starches, inlin, wheat gluten | $658.97K |
| Rubbers | $612.45K |
| Cocoa and cocoa preparations | $542.66K |
| Cereal, flour, starch, milk preparations and products | $523.15K |
| Edible fruits, nuts, peel of citrus fruit, melons | $435.68K |
| Oil seed, oleagic fruits, grain, seed, fruits | $339.16K |
| Manmade staple fibers | $207.85K |
| Wood and articles of wood, wood charcoal | $204.76K |
| Raw hides and skins (other than furskins) and leather | $184.75K |
| Soaps, lubricants, waxes, candles, modelling pastes | $172.95K |
| Glass and glassware | $55.60K |
| Cereals | $45.36K |
| Machinery, nuclear reactors, boilers | $41.48K |
| Animal, vegetable fats and oils, cleavage products | $29.39K |
| Edible vegetables and certain roots and tubers | $23.20K |
| Inorganic chemicals, precious metal compound, isotope | $14.00K |
| Organic chemicals | $13.50K |
| Residues, wastes of food industry, animal fodder | $11.38K |
| Articles of iron or steel | $1.52K |
| Miscellaneous chemical products | $1.24K |
The Impact of DCTS on Nigerian UK Non-Oil Exports
On June 19, 2023, the United Kingdom introduced the Developing Countries Trading Scheme (DCTS) as a replacement for its Generalised Scheme of Preferences (GSP) in foreign trade. The DCTS, designed to foster trade with developing nations, simplifies trading regulations, reduces tariffs, and eliminates certain conditions, thereby lowering the import expenses for thousands of globally sourced products.
According to the Home office, this initiative is applicable to 65 countries, including those classified as least developing countries (LDCs) by the United Nations or low income and lower middle-income nations according to the World Bank.
The DCTS has had a significant impact on Nigeria’s non-oil export market. Following its implementation, Nigeria experienced a reduction in export tariffs for approximately 3,000 products shipped to the UK, with the potential for even more under the DCTS. As a result, 99% of Nigeria’s goods exports to the UK have become duty-free.
Dr. Ezra Yakusak, the Executive Director and CEO of the Nigerian Export Promotion Council (NEPC), envisions that Nigeria could increase its share of the £14 billion UK market from 0.3% to 5% by 2030 through the DCTS.
Dr. Ezra identifies key sectors with ample supply relative to demand, such as cocoa, fertilizers, sesame, ginger, cashew nuts, natural rubber, cotton, frozen prawn, plantains, and tomatoes, as promising opportunities for increasing non-oil exports to the UK.
The DCTS also brings benefits to the UK, as stated by Ms. Gill Atkinson, the Deputy British High Commissioner to Nigeria. It significantly reduces import costs, saving the UK over £750 million annually.
This cost reduction contributes to lower prices and increased product options for both British consumers and businesses.
