Export rerouting erodes Nigeria’s gains, even with a N7.55 trillion trade surplus — NESG

By Yinka Kolawole

The Nigerian Economic Summit Group (NESG) has warned that the practice of rerouting exports through neighbouring countries is eroding Nigeria’s trade competitiveness and depriving the economy of substantial domestic value, even as the country recorded an impressive N7.55 trillion trade surplus in the first quarter of 2026.

Data from the National Bureau of Statistics (NBS) show that Nigeria’s total merchandise trade rose to N34.79 trillion in Q1 2026. Exports reached N21.17 trillion while imports stood at N13.62 trillion, producing a positive trade balance of N7.55 trillion.

While the surplus is encouraging, NESG cautions that headline trade figures do not reveal the full picture. The group points out that Nigeria continues to lose significant economic benefits when locally produced goods are exported through neighbouring countries before reaching their final destinations.

Export rerouting occurs when goods produced in one country are moved through another country before they reach buyers.

According to the group, rerouting deprives Nigeria of logistics income, distorts trade statistics, weakens product branding and limits the country’s ability to capture the full value generated by its exports.

The private‑sector think tank identified weak quality‑assurance and certification systems, inefficient port operations, and cumbersome export procedures as major factors that push exporters to seek alternative trade routes outside Nigeria.

NESG urged the government to strengthen local certification and quality‑assurance infrastructure so that Nigerian products meet international standards without relying on third‑country certification systems.

It noted that globally recognised certification has become a critical requirement for accessing international markets, warning that where Nigerian exporters cannot obtain credible certification domestically, neighbouring countries often provide the final export channel.

The group added that sectors such as agriculture, food processing, textiles, leather and manufacturing stand to gain significantly if certification processes are improved, enabling exporters to access foreign markets directly while retaining more value within the domestic economy.

NESG also urged authorities to address longstanding bottlenecks at Nigerian ports, including congestion, excessive documentation, delays and high logistics costs, arguing that these inefficiencies continue to discourage exporters and make neighbouring ports more attractive.

According to the group, improving port efficiency is not merely a transportation issue but a strategic imperative for boosting Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA) and the global trading system.

It stressed that beyond recording trade surpluses, Nigeria must focus on increasing domestic value capture by simplifying export procedures, modernising port infrastructure, investing in industrial processing zones and providing exporters with the infrastructure needed to compete globally.

“Trade growth should not be measured only by the size of the surplus,” the group said, insisting that the ultimate objective should be to ensure exports generate more jobs, foreign‑exchange earnings, industrial expansion and broader economic value within Nigeria.