Nigeria importing less than African, Asian peers –Economists

Although Nigeria is largely regarded as net importer of various commodities including manufactured goods worth over N20 trillion last year alone, economists say the country  is importing too little compared to its African and Asian peers.

Nigeria’s imports were worth N20.84 trillion in 2021, representing an increase of 64 per cent compared to N12.7 trillion recorded in the preceding year, with Nigeria’s Petrol exports being the highest at N3.97 trillion, followed by Durum wheat – N1.29 trillion and used vehicles – N770.13 billion.

But some experts believe there is  need to diversify the nation’s exports earnings potential as more imports are needed for manufacturing and food processing. Imports that aide industrialisation include machines, semiconductors and integrated circuits.

Nigeria needs to import more to become a globally competitive market for trade and economic development.

But the country’s imports make up less than 10 per cent of its GDP  as Nigeria’s largest import  is refined Petroleum (which would reduce significantly once the Dangote Refineries and Port Harcourt refinery renovation come onboard).

Financial Market analyst at Quantum Economics, Olumide Adesina said, “The major challenge is that the biggest economy in Africa lacks significant purchasing power for large imports and production potential to increase exports.

“Despite being the most populous country on the continent, Nigeria is not the biggest importer. More imports are consumed by South Africans and Egyptians than Nigerians, but neither nation describes itself as an import-dependent nation,” he said.