Unlocking Nigeria's Economic Growth through Strategic Trade Agreements
Year: 2025
Type: article
Abstract: Nigeria’s economic trajectory has long been constrained by structural dependence on crude oil exports, limited industrial diversification, and weak integration into global value chains. Despite its status as Africa’s largest economy by GDP and population, the country has struggled to convert its resource wealth and demographic advantage into sustainable and inclusive growth. In an increasingly interconnected global economy, strategic trade agreements provide a vital policy lever for unlocking Nigeria’s economic potential. This paper investigates how Nigeria can leverage bilateral, regional, and multilateral trade agreements to stimulate economic transformation, enhance export competitiveness, attract foreign direct investment (FDI), and build resilience against global economic shocks. Drawing on classical, neoclassical, and contemporary trade theories, as well as empirical data from international trade organisations and African regional bodies, the analysis highlights how well-designed agreements particularly under frameworks such as ECOWAS, the African Continental Free Trade Area (AfCFTA), and the World Trade Organization (WTO) can catalyse industrial upgrading, integrate local firms into global value chains, and promote technology transfer. The study also examines the domestic constraints such as inadequate infrastructure, regulatory inefficiencies, weak institutional coordination, and limited SME participation that must be addressed to fully realise these benefits. Through a policy-oriented lens, the paper offers a comprehensive roadmap for enhancing Nigeria’s trade negotiation capacity, modernising customs and border management systems, and aligning trade policy with broader industrial development objectives. The findings underscore that strategic trade agreements, when coupled with robust domestic reforms and privatesector engagement, hold significant promise for driving inclusive, diversified, and sustainable economic growth in Nigeria.
Author: Onigbogi-Jackson, Wuraola Abosede
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7107940209
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