By Ladi Gbegi
Nigeria’s economy is witnessing significant growth in trade and foreign investment inflows, driven by the economic reforms of President Bola Tinubu’s administration, according to the Independent Media and Policy Initiative, IMPI.
In a statement released Wednesday in Abuja, IMPI’s Chairman, Omoniyi Akinsiju highlighted the impressive figures, noting that Nigeria’s total trade volume reached a historic N138 trillion in 2024, marking a 106 percent increase from the previous year.
“This surge is a direct result of key policies under President Tinubu’s reform agenda, including the harmonisation of foreign exchange rates and the removal of fuel subsidies,” Akinsiju stated.
Exports nearly doubled, soaring by 96.3 percent to N60.59 trillion in 2024, with crude oil exports alone accounting for $36 billion.
IMPI also noted a significant shift in Nigeria’s trade dynamics, with Africa emerging as the largest export destination. This change is attributed to the growth of intra-African trade under the African Continental Free Trade Area, AfCFTA.
Moreover, foreign exchange inflows into Nigeria rose by 41 percent in 2024, reaching $79.8 billion, while Foreign Direct Investment, FDI, saw substantial growth. By the end of the year, Nigeria is expected to have attracted approximately $21 billion in foreign investments, including $17 billion from the Nigerian National Petroleum Corporation Limited, NNPCL.
“This influx of foreign capital has significant implications for Nigeria’s productivity, job creation, and wealth generation. Investors are increasingly drawn to markets offering higher returns compared to their home economies,” Akinsiju explained.
However, despite these economic strides, concerns remain over the declining growth in the agriculture sector. Akinsiju attributed this to several factors, including the worsening impacts of climate change, rising input costs, and insufficient funding for farmers. The phasing out of the Anchor Borrowers’ Programme, ABP, which previously provided affordable credits for agricultural inputs, has further compounded these challenges.
“The reduced intervention in the agriculture sector in 2024 reflects the negative aftereffects of scrapping the ABP,” he noted.
Akinsiju called for sustained policy measures to address the challenges facing the agriculture sector and ensure that the broader population benefits from the country’s economic growth. He emphasized the importance of addressing these issues, particularly in light of the N1.5 trillion Bank of Agriculture, BOA, recapitalisation outlined in the 2025 Appropriation Act.
“This strategic funding approach presents a more sustainable and nuanced solution to supporting the agriculture industry,” Akinsiju concluded.
