TREND AND STRUCTURE OF NIGERIA’S EXTERNAL TRADE
There have been considerable changes in the composition and direction of external trade between Nigeria and other countries since its independence in 1960. Before independence her trading partner was her colonial master, Britain. As at today, Nigeria’s trading partners are mainly with many advanced countries which are grouped into three:
- Western Europe: The countries are Britain, Germany, France, Italy, Holland, Spain, Portugal, Belgium and Netherlands. Britain is Nigeria’s first and most important trading partner. The sea route through which Nigeria and Europe exchange their products is the North Atlantic sea route.
- The north and south America: The countries here include U.S.A., Canada, Brazil, Venezuela and Argentina. U.S. A. is Nigeria’s second most important trading partner after Britain.
- The Far East: The countries include: Japan, Taiwan and South Korea.
Major commodities involved in international trade
- Nigeria’s Exports
Nigeria usually exports agricultural products and crude minerals to her foreign trading partners.
- Agricultural Products: E.g. cocoa, palm oil, palm kernel, groundnut, rubber, cotton and hides and skin.
- Mineral Products: E.g. Petroleum or crude oil, tin and columbite.
- Nigeria’s Imports
- Manufactured goods: Nigeria manufactured goods from these foreign countries e.g. computers, motor vehicles, tractors and machines and electronics.