May 19, 2024


Studying business science

Nigeria: A Rising Trade Partner With the West

In recent years, people may be apt to dismiss Nigeria as a legitimate player in the global trade arena. For all the resources this country offers the West and other parts of the world, the association of the country with the rapid rise in Internet and phone scams risks the Nigerian reputation. These dubious e-mails are referred to as such as in the beginning the majority of messages originated (or claimed to come from) Nigeria – although now similar Internet scams come from other parts of the world. Despite this mark, it should be noted that Nigeria is a growing member of the Next 11 group of trading countries, an emerging mixed economy ranked among the top forty nations in the world in terms of gross domestic product.

In its home continent, the republic follows only South Africa in ranking the top African nations by overall economy – and is the largest in West Africa. Thanks to rich oil fields, the country provides a powerful resource for petroleum that hasn’t gone unnoticed among western nations, including the United States. The US alone accounts for Nigeria’s greatest percentage of foreign investment.

Top Exports of Nigeria

The majority of the republic’s overall income is derived from petroleum and crude oil exports. As a member of OPEC and one of the largest suppliers in the world, Nigeria exports billions of dollars worth of oil annually – with the United States receiving the lion’s share. Other popular exports include:

Cocoa beans – While not a major figure in this commodity as other countries, several million dollars’ worth of cocoa exported around the world makes this crop quite valuable.

Natural rubber – With a growing interest in manufacture of “green products,” Nigeria has seen a rise in demand for rubber and tree gum.

Tree and ground nuts – More than half of the republic’s labor force is agricultural, and ground nuts especially make up a good percentage of crops.

Cooking oils – Palm and coconut oils are pressed and exported regularly.

Top Imports of Nigeria

Nigeria’s primarily agrarian environment leaves her people to rely upon global imports to sustain the domestic economy. Drilling equipment for their natural oil resources is especially in demand, as is other excavating machinery. Other top imports from the United States and elsewhere include:

Grains – Corn and rice come in high demand, for though Nigeria has plenty of land for farming it is used more for what they export.

Automotive – Cars and transportation are shipped regularly into country to ensure business stays moving.

Refined petroleum byproducts – As with other countries, Nigeria tends to export more crude and raw materials and leave refinement to trading partners.

With western nations continuing to seek alternative fuel partners, it is a great probability Nigeria will figure more into American trading. There is definitely more to this country than an unfortunate association with Internet misbehavior.