Nigeria joins Commonwealth nations to unlock $2tn trade potential

Nigeria has joined other Commonwealth nations in a concerted effort to unlock a $2 trillion intra-Commonwealth trade potential by 2030.¹ This initiative is aimed at deepening economic ties, fostering sustainable growth, and lifting millions out of poverty across the 56 member countries.²

Driving the Agenda

• Shared Advantage: The Commonwealth Secretariat highlights that intra-Commonwealth trade is, on average, 21% cheaper than trade with non-member countries.³ This is attributed to shared language, legal systems, and institutional frameworks that reduce transaction costs.⁴
• Collective Action: Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, has emphasized the country’s commitment to this agenda, calling for increased funding to accelerate progress.⁵ The collective goal is to leverage shared values and historical ties to enhance cooperation and economic resilience.⁶
• Strategic Partnerships: The Commonwealth Enterprise and Investment Council (CWEIC), with Nigeria being its most prominent hub outside the UK, is actively working to increase the number of its strategic partners in the country.⁷ This effort, which includes partnerships with companies like Dangote Group and Zenith Bank, aims to create a platform for Nigerian businesses to drive the Commonwealth’s trade and investment agenda. The Lagos State Government has also signed a Memorandum of Understanding with the CWEIC to position Lagos as a key hub for trade and investment within the Commonwealth.⁸
• Focus on Key Sectors: Nigeria’s participation in this initiative is seen as a way to attract foreign investment and deepen export opportunities, particularly in non-oil sectors.⁹ The country’s delegation has engaged with global financial institutions and has been actively promoting investment in sectors like agriculture, manufacturing, and technology.¹⁰

Challenges and Opportunities

Despite the potential, challenges remain. Issues like complex regulations, inconsistent quality management systems, and a lack of awareness of import requirements in certain markets can hinder Nigerian exporters.¹¹ However, initiatives like the UK’s Developing Countries Trading Scheme (DCTS) provide Nigerian exporters with enhanced market access, including duty-free treatment on a large number of products.¹²

Overall, Nigeria’s active participation in this push for greater Commonwealth trade is part of its broader economic diversification agenda and its commitment to engaging with global financial institutions to navigate significant macroeconomic reforms.¹³