By Yinka Kolawole

The Nigerian Economic Summit Group, NESG, has warned that export rerouting through neighbouring countries is undermining Nigeria’s trade competitiveness and depriving the economy of significant domestic value, despite the country’s impressive N7.55 trillion trade surplus recorded in the first quarter of 2026.

The warning comes as data from the National Bureau of Statistics, NBS, showed that Nigeria’s total merchandise trade rose to N34.79 trillion in Q1 2026, with exports valued at N21.17 trillion and imports at N13.62 trillion, resulting in a positive trade balance of N7.55 trillion.

While describing the surplus as encouraging, NESG cautioned that headline trade figures do not tell the full story, stressing that Nigeria continues to lose substantial economic benefits when locally produced goods are exported through neighbouring countries before reaching their final destinations.

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

According to the group, export 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 pushing exporters to seek alternative trade routes outside Nigeria.

NESG called on the government to strengthen local certification and quality assurance infrastructure to ensure 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 benefit from providing 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.

The Federal Government is set to intensify efforts to drive industrial growth, expand trade, mobilise investment and boost non-oil exports in 2026 as part of its economic diversification agenda.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, stated this at a management retreat for directors-general, directors and chief executives of agencies under the ministry.

She said the focus is to translate policy into measurable economic outcomes through stronger implementation, collaboration and performance monitoring.

The retreat themed, “From Policy to Performance: Driving Industrial Growth, Trade Expansion and Investment Outcomes,” was convened to review the implementation of the Nigeria Industrial Policy (NIP), described as the country’s first comprehensive industrial framework aimed at rebuilding Nigeria’s manufacturing base.

According to the minister, the retreat seeks to assess progress on the policy and strengthen accountability, noting that previous policy initiatives often faltered at the implementation stage.

“Our immediate responsibility is to convert policy direction into tangible results through effective execution, inter-agency collaboration and rigorous performance monitoring,” she said.

Highlighting achievements recorded in 2025, Oduwole said policy alignment across trade, investment and industry delivered significant gains for the economy.

She disclosed that total capital importation rose to about $21 billion within the first 10 months of 2025, while non-oil exports exceeded $6.1 billion, reflecting sustained efforts to diversify Nigeria’s export base.

She also said intra-African trade climbed to approximately N4.82 trillion in the first half of 2025, driven by expanding opportunities under the African Continental Free Trade Area (AfCFTA).

According to the minister, more than 115,000 Micro, Small and Medium Enterprises (MSMEs) accessed grants, loans and trade finance through interventions implemented by the Bank of Industry, NEXIM Bank and the Nigerian Export Promotion Council.

Oduwole further revealed that Nigeria successfully completed Africa’s first comprehensive five-year review of the implementation of the AfCFTA, underscoring the country’s leadership in regional trade integration.

She said progress has continued in 2026 with improved export connectivity, enhanced investment facilitation, stronger intellectual property reforms and increased support for exporters and manufacturers.

The minister added that ongoing trade and investment agreements would unlock new export markets, attract foreign and domestic investments and strengthen Nigeria’s participation in global value chains.

By Yinka Kolawole

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled Grow Fund for Small Businesses in Nigeria, a N500 million zero-interest fund for Micro, Small and Medium Enterprises (MSMEs) in the country.

SMEDAN Director-General, Charles Odii, announced the initiative, in Abuja, as part of activities to mark the 2026 World MSME Day.

Odii said the revolving loan would be disbursed through cooperatives, trade unions, business member organisations and associations rather than to individual entrepreneurs.

According to him, the association-based model will improve accountability, loan recovery and ensure the funds reach genuine business owners, adding that the financing was designed to address one of the biggest challenges confronting small businesses in Nigeria.

“We visited traders at one of the markets today to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities. Many of the challenges they raised border on financing, which is why we are launching the Grow Fund for Small Businesses in Nigeria,” he said.

Odii said beneficiaries would be able to access the zero-interest fund to boost working capital, procure workspaces and acquire tools required for their businesses.

“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he said.

Odii said repayment terms would be agreed with each association, adding that the flexible arrangement would allow the revolving fund to benefit more entrepreneurs.

The SMEDAN boss said the initial N500 million would be expanded through partnerships with state governments, development partners and other institutions willing to provide matching funds.

He said SMEDAN was also reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval, noting that the proposed reforms include single-digit interest loans for MSMEs, reserving 30 per cent of government procurement for small businesses and removing age limits from intervention programmes.

Odii also said the agency would engage relevant regulators on concerns affecting small businesses, including advertising registration requirements.