Nigeria has much to be proud of. As one of the foremost countries in Africa, it boasts the largest economy on the continent and the 27th largest in the world. Compared to its neighbours and many others, it is thriving.
A regional power in Africa and an emerging global power, Nigeria is one of the Next Eleven economies. These are the countries identified as having the highest potential to become the largest economies in the world during the 21st century – a classification based on their outlooks for investment and future growth.
This is all incredibly promising, but have you ever wondered why Nigeria has such potential? In part, this is due to its high-earning export market. With many sought-after commodities produced within the country, it sells what many others want to buy.
In this article, we take a look at the industries contributing to this trend and how much they add to the economy each year.
An export powerhouse
Did you know Nigeria is the 50th largest export economy in the world? With an export total of $59.5 billion, much of the nation’s wealth comes from what it sells abroad. These goods are exported to lots of different countries, with its primary trading partners being India, Spain, the United States, France, and South Africa.
So how much do these countries spend on buying in Nigerian exports? India is the nation’s most generous patron, investing $10 billion into the economy each year. It’s followed by Spain, a nation that spends over $6.12 billion on snapping up our home-grown exports. The US, France, and South Africa spend $5.74 billion, $4.02 billion, and $3.87 billion respectively.
While this all sounds very positive, however, the value of Nigeria’s export market has fallen over the past five years – by a very dramatic $38 billion. This meant that – at its peak –the country raised $97.6 billion per annum from its exports alone.
Though there are a number of factors behind this decline, including falling oil prices and a stalling economy, exports are still an important aspect in determining the country’s profit potential and contribute a large amount to GDP.
Nigeria’s Top Commodity Exports
So, without further ado, what are Nigeria’s primary commodity exports?
- Crude petroleum – $45 billion per year
- Petroleum gas – $8.6 billion per year
- Refined petroleum – $940 million per year
- Cocoa beans – $621 million per year
- Gold – $577 million per year
These numbers are particularly interesting for those who wish to trade commodities with Infinox and similar brokers. The world revolves around the commodities it has, and speculating on the price of these gives individuals the chance to profit from fluctuations in market value. This value can be impacted by several factors, from simple supply and demand to global events.
For both ordinary Nigerians and those looking to trade, such information can be invaluable, pointing you in the direction of opportunities and helping you decide where your best interests lay.
Are Nigeria’s biggest exports something you would consider investing in?