“Nigeria’s Exports To ECOWAS Hits $6b” – IMF Reveals

The International Monetary Fund (IMF) Article IV Consultation Staff Report has shown that Nigeria’s exports to the Economic Community of West African States, ECOWAS, member-countries have been increasing yearly.

The exports increased from $1 billion in 1990 to about $6 billion in 2013, IMF said.

The report said the January 2015 implementation of the Common External Tariffs (CET) for ECOWAS member-countries is expected to reduce incentives for informal trade and simplify Customs procedures, potentially increasing recorded trade volumes.

“Moreover, the slowdown in Nigeria will adversely affect informal exports to Nigeria. Anecdotal evidence indicates that goods that are subject to import restrictions in Nigeria have become key export goods for neighboring countries. Those informal exports to Nigeria are important sources of income for some neighboring countries and outward spillovers may be nontrivial,” the report stated

The IMF report added that the depreciation of the exchange rate would add to inflation, reflecting the pass-through of higher domestic prices for imports. However,, the effect is likely to be contained, in part due to lower food prices from increased local production of staple food crops.