Trade volumes between Nigeria and South Africa, two of Africa’s largest economies, continue to drive the hope of more extended bilateral trade relations once the African Continental Free Trade Area (AfCFTA) kicks in, as trade between both countries in 2020 reached $2.9 billion.
This was disclosed by Nigeria’s Consul General, Malik Abdul, stating that 64 percent of South Africa’s trade in the West African region was with Nigeria.
Nigeria imported good worth $425 million from South Africa in 2020, while it exported, mostly crude oil, goods worth $2.48 billion (R35 billion) to South Africa.
Abdul noted that the trade relations between both countries was necessary for South Africa, necessitating stringer economic ties between both nations.
He explained that “South Africa is currently among the top 10 per cent of investors in Nigeria, globally and Nigeria is South Africa’s 10th biggest export market in Africa and thirty-second globally. Nigeria accounts for 64 per cent of South Africa’s trade with West Africa and is one of South Africa’s top three sources of crude oil.
“Also, Nigeria in 2020 was South Africa’s top import market in Africa and sixth globally, after China, Germany, USA, India and Saudi Arabia. Over the past year, South Africa imported $2.48 billion worth of goods predominantly crude oil from Nigeria and exported $425 million worth to Nigeria.”
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South Africa-Nigeria Trade
Globally, Nigeria ranks 32nd among South Africa’s export destinations, according to Tralac, with Nigeria making up only 1 percent of South Africa’s total exports.
Nigeria, in terms of importation, is ranked as the 10th import supplier to South Africa, on a global level.
Within the African sphere, Nigeria ranks 12th as South Africa’s export stop and sits at the top of the list in terms of import supply to South Africa.
Although Nigeria accounts for 99 percent of South Africa’s crude oil imports, the southern African nation also imports goods such as fertilisers, rubber products, coffee, tea, and alumimium products from Nigeria.
On the other hand, Nigeria imports fruits, ships, boats, and plastic products from South Africa.