---

Author(s): Adewale Abdulwaheed Soneye, Aisha Yahaya-Bambale, Isaac T. Jolayemi, Folake D. Theophilus, Haladu M. Gambo.

Volume/Issue: Volume 7 , Issue 4 (2024)

Abstract:

This paper examines the historical development and impact of Nigeria's trade policies from the pre-independence era to the present day. It identifies both the benefits and challenges of these policies. Nigeria, the largest economy in Africa, has demonstrated significant economic potential, bolstered by its expanding international trade and active participation in the World Trade Organisation (WTO), which advocates for liberalised global trade. The interdependence among countries arising out of the principles of competitive and comparative advantages inevitably created the need for cross-border, that is, international trade. Countries have become more integrated through international trade, particularly since the WTO's creation in 1995. Despite the division of the nation's economic activities into agricultural, industrial, and service sectors, approximately 80% of its revenue and foreign exchange earnings come from oil and gas. Nigerian governments have implemented various policies to reduce this dependency and diversify the economy, leading to some progress in the non-oil export sector and other areas. The trade policies reflect gains such as the attraction of indigenous and foreign direct investments, employment creation, and economic growth. However, the essay also acknowledges significant challenges, such as inefficiencies in various sectors, underdevelopment of agriculture, and slow progress in developing non-oil export alternatives. In its conclusion, the essay suggested that the Nigerian government should balance its national economic growth and development objectives with the requirements of its WTO membership and other international trade commitments. Adopting and implementing well-formulated pragmatic trade policies can achieve this balance and advance the country's desired economic development agenda. Nigeria can enhance the value addition to its raw agricultural products, improve the competitiveness of its domestic industries, and address the infrastructural challenges that hinder the efficiency of its productive economic activities.

Keywords:

Nigeria trade, Trade liberalisation, Trade openness, Trade policy.

No. of Downloads: 0