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Michael Tome
Business Reporter
NIGERIA presents an attractive opportunity for local firms to tap into the West African economy’s vast Fast Moving Consumer Goods ((FMCG), raw hides, and horticultural produce markets, a survey established.
The export opportunities were identified following a market survey in Africa’s second-largest economy conducted by national trade promotion body ZimTrade.
The survey, which focused on Lagos and Abuja, sought to identify export opportunities for and potential market allies in the West African country as well as appreciation of Nigeria’s regulatory framework.
According to ZimTrade, opportunities for Zimbabwean exporters to tap into and increase Zimbabwe’s exports are vast.
Trade between Nigeria and Zimbabwe remains minuscule, largely dominated by Zimbabwean exports.
Zimbabwe’s exports to Nigeria reached US$6,39 million and US$7 million in 2021 and 2022, respectively, while Nigeria exported goods worth US$388 000 and US$421 000 to Zimbabwe in the same period.
The main products exported to Nigeria by Zimbabwe included raw tobacco worth US$5,12 million, processed cereals (US$1,25 million), and mill machinery worth US$13 200 in 2022.
On the other hand, Nigeria’s exports to Zimbabwe comprised gaskets worth US$57 500, ball bearings (US$42 400), and liquid pumps valued at US$36100.
Zimbabwe stands a good chance to supply the Nigerian market with a diversity of horticultural produce.
In 2022 alone Nigeria imported horticultural products worth over US$272 million from various countries across the world.
South Africa and Niger were the only two African countries in the top 10 suppliers of horticultural products to Nigeria.
Some of the horticultural products shipped into Nigeria during the period include fresh apples, fresh grapes, fresh or dried grapefruit, fresh pears, dried peaches, pears, dried apples, garlic fresh or chilled, dried apricots, preserved cherries, and almonds.
Critically, Zimbabwe is a massive producer of a variety of such horticulture products that are mainly sold to re-exporting countries like the Netherlands and the United Arab Emirates (UAE).
Although Zimbabwean exports into Nigeria are dominated by unmanufactured tobacco the country can also take advantage and be a notable supplier of raw hides and skins given their demand in the West African country.
Nigeria imports leather and leather products worth over US$300 million annually mainly from China.
Speaking at Nigeria’s market survey dissemination seminar ZimTrade client advisor, Kupakwashe Midzi, implored local players to take advantage of good relations between the two countries.
“Opportunities exist for Zimbabwean exporters to directly supply Nigeria’s major retail chains with our diverse produce.
“My expectation is to see both countries boost and strengthen their Bilateral economic relations particularly importation and exportation of goods, we are likely to see reinvigoration of trade agreements to explore other sectors like the creative and arts industry,” said Mr Midzi.
The Nigerian market is also ripe for essential oils, which are used mainly in the manufacturing of deodorants and antiperspirants, preparations for hair, cosmetics, skin care powders, and other medicaments including those used by dental practitioners.
Production of essential oils has been improving lately given the growing value addition of Marula lately.
In his remarks on behalf of Nigerian ambassador to Zimbabwe, Zacharia Ifu, Counsellor Fred Odeyi said more effort should be placed on improving the two countries’ trade.
“The two governments at the top level should concretise agreements, which will facilitate more exchanges in terms of goods and services from each of the two countries.
“Our job here as an embassy is not just political, we have an economic aspect essential for economic development. We need more collaborations with airlines like DHL for instance to facilitate the movement of these goods from one country to the other,” Mr Odeyi said.
Nigeria presents a huge export market opportunity to Zimbabwe having imported Fast Moving Consumer Goods (FMCG), processed foods and agro-based products worth US$3, 6 billion.
With a population of 213, 4 million in 2021 Nigeria’s gross domestic product reached US $440.8 billion.
South Africa, through its major retail outlets like Shoprite, Pick n Pay, and Spar dominates as Nigeria’s source of imports from Southern Africa having supplied goods worth US$561 million in 2022, followed by Eswatini and Namibia having supplied merchandise worth US$68 million and US$39 million respectively.
Zimbabwe stands as the eighth top supplier of goods and commodities to Nigeria having supplied goods worth US$7 million in 2022.
Nigeria’s total imports breached US$60, 5 billion in 2022 from US$52,4 billion in 2021.
China is Nigeria’s major source of imports supplying 23 percent of the total followed by the Netherlands and Belgium at 10 percent apiece then India and the United States at eight and six percent, respectively.
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