Nigeria’s economic future hangs in the balance as the ‘African giant’ grapples with a rapidly evolving global landscape. With a population exceeding 230 million and a youthful demographic hungry for opportunities, the pressure to secure economic growth through strategic international partnerships has never been more urgent.
- African Continental Free Trade Area (AfCFTA)
- Nigeria-Morocco Gas Pipeline Agreement
- EU-Nigeria Partnership Agreement
- Nigeria-China Trade Agreement
- ECOWAS Trade Liberalization Scheme (ETLS)
- Nigeria-United States Trade and Investment Framework Agreement (TIFA)
- UK-Nigeria Economic Partnership Agreement (EPA)
- Nigeria-India Bilateral Trade Agreement
- Nigeria-Turkey Trade Agreement
While crude oil has long been Nigeria’s economic backbone, diversification is no longer a luxury but a necessity. From tech entrepreneurs striving to break into global markets to farmers seeking fairer trade conditions, Nigerians across all sectors are feeling the ripple effects of international agreements shaping the nation’s economic prospects.
As the world shifts under the weight of technological advancements, climate policies, and geopolitical tensions, Nigeria’s approach to international trade is undergoing a crucial transformation.
For policymakers, these trade agreements represent potential catalysts for industrial growth, foreign investment, and economic stability. For ordinary citizens, they are promises that may or may not translate into real-life benefits like better jobs, improved infrastructure, and affordable goods.
According to data obtained from BusinessDay research, here are ten pivotal trade agreements shaping Nigeria’s economy in 2025, examining their potential, their pitfalls, and the future they may hold for millions of Nigerians.
African Continental Free Trade Area (AfCFTA)
The AfCFTA, launched in 2021, remains the crown jewel of Africa’s economic integration efforts. By aiming to create a single market for goods, services, and capital across 54 of Africa’s 55 countries, it promises to boost intra-African trade by over 50% in the next decade.
For Nigeria, the AfCFTA presents an unprecedented opportunity to expand its export base beyond crude oil. Small and medium-sized enterprises (SMEs) are at the forefront of this revolution, particularly in the agriculture, textiles, and manufacturing sectors. However, the real challenge lies in building infrastructure that can support efficient trade logistics, particularly road networks, rail systems, and port facilities.
Moreover, tariff reduction policies under the AfCFTA have sparked debates within Nigeria’s manufacturing sector, with some stakeholders expressing fears of an influx of cheaper goods from other African countries, undermining local industries. Yet, advocates of the agreement argue that with the right structural reforms, Nigeria could emerge as a manufacturing hub serving the entire continent.
Nigeria-Morocco Gas Pipeline Agreement
Originally conceptualized in 2016, the Nigeria-Morocco Gas Pipeline Agreement has gained renewed momentum in 2025, as both nations strive to strengthen their energy security and economic cooperation. The ambitious project, stretching over 5,600 kilometers, will transport Nigerian natural gas through several West African countries to Morocco and eventually Europe.
For Nigeria, the pipeline offers a transformative opportunity to diversify its revenue streams beyond crude oil, tapping into the lucrative natural gas market. Projections estimate the project could generate billions of dollars in revenue annually while also enhancing regional energy security and integration.
Nevertheless, the project faces several hurdles, including funding gaps, political instability along the pipeline route, and environmental concerns. Nigeria’s government continues to negotiate financing options with international partners while also working to address potential security risks that could undermine the project’s success.
EU-Nigeria Partnership Agreement
The EU-Nigeria Partnership Agreement is part of a broader effort to solidify economic ties between Africa and Europe. Through this partnership, Nigeria enjoys preferential access to European markets for its agricultural products, textiles, and raw materials. The EU, in turn, seeks to deepen its presence in Nigeria’s lucrative consumer market while investing in critical sectors such as technology and infrastructure.
Despite the benefits, compliance with stringent EU standards remains a significant obstacle for Nigerian exporters. Products like cocoa, rubber, and processed foods often face rejection due to quality control issues, making it difficult for smaller producers to break into the European market.
Additionally, the agreement has sparked debates over unequal trade balances, with critics arguing that Europe continues to benefit disproportionately from the arrangement. Nonetheless, policymakers are working on strategies to enhance Nigeria’s capacity to meet EU standards, including initiatives aimed at improving certification processes and boosting industrial output.
Nigeria-China Trade Agreement
China’s economic footprint in Nigeria continues to expand, particularly through the Belt and Road Initiative (BRI) and various bilateral trade deals. With China accounting for nearly 20% of Nigeria’s imports in 2025, the trade relationship is a double-edged sword.
On one hand, Chinese investments in infrastructure, such as railways, power plants, and telecommunications, have been instrumental in Nigeria’s developmental efforts. On the other hand, local industries face growing competition from cheap Chinese imports, particularly in manufacturing and consumer goods.
The agreement’s critics argue that Nigeria’s dependency on Chinese goods has deepened its trade deficit, while proponents highlight the importance of technology transfer and financing support that China continues to offer. Additionally, Nigeria’s shift towards exporting more agricultural products and raw materials to China aims to reduce the trade imbalance and enhance bilateral relations.
ECOWAS Trade Liberalization Scheme (ETLS)
Established to promote free trade within the Economic Community of West African States (ECOWAS), the ETLS is a key driver of regional economic integration. Under this agreement, member states, including Nigeria, enjoy duty-free and quota-free access to each other’s markets for approved goods and services.
For Nigeria, the ETLS has bolstered trade in agro-processing, manufactured goods, and services, particularly in border regions where cross-border trade thrives. However, insecurity along key trade routes, poor infrastructure, and cumbersome customs procedures have hindered the full realization of the scheme’s potential.
Additionally, smuggling and tariff evasion have emerged as major challenges, prompting Nigeria to enforce stricter border controls at times, much to the frustration of its ECOWAS partners. Nevertheless, the agreement remains a critical framework for Nigeria’s regional trade policy, with efforts underway to streamline customs processes and enhance border security.
Nigeria-United States Trade and Investment Framework Agreement (TIFA)
The Nigeria-U.S. TIFA, established to enhance bilateral trade and investment relations, has been a significant framework for addressing trade barriers and fostering economic cooperation between the two countries. In 2025, discussions under the TIFA have intensified, focusing on expanding Nigeria’s non-oil exports to the U.S. and attracting American investment in technology, energy, and infrastructure.
While the agreement has paved the way for increased agricultural exports, particularly cocoa, sesame seeds, and ginger, Nigerian exporters continue to grapple with issues related to compliance with U.S. food safety and quality standards. Efforts are underway to build capacity for meeting these standards, especially for small-scale farmers who form the backbone of Nigeria’s agricultural sector.
Furthermore, negotiations are ongoing to broaden the scope of the agreement to include digital trade, intellectual property rights, and renewable energy, which could offer Nigeria new avenues for economic diversification. However, concerns over transparency and bureaucratic bottlenecks remain key challenges to unlocking the agreement’s full potential.
UK-Nigeria Economic Partnership Agreement (EPA)
The UK has been keen on strengthening its trade relations with African countries, including Nigeria. The UK-Nigeria EPA, signed in 2022 and reinforced through various agreements in 2025, seeks to promote trade and investment by eliminating tariffs on Nigerian exports to the UK.
This agreement has notably benefited Nigeria’s agricultural and manufacturing sectors, with products like textiles, cocoa, and processed foods gaining improved access to British markets. However, the agreement’s critics argue that the focus on raw material exports reinforces the colonial pattern of trade, where value-added goods remain limited.
On the flip side, British investments in Nigeria’s energy, finance, and education sectors have continued to grow. Nonetheless, ongoing debates about the trade imbalance persist, particularly as Nigeria seeks to enhance its capacity for producing high-quality finished goods that can compete globally.
Nigeria-India Bilateral Trade Agreement
India remains one of Nigeria’s largest trading partners, particularly in the energy sector. The Nigeria-India Bilateral Trade Agreement, regularly updated to reflect changing economic realities, focuses on the exchange of crude oil, natural gas, agricultural products, and pharmaceuticals.
In 2025, Nigeria has been exploring opportunities to diversify its exports to India beyond crude oil, seeking to increase agricultural exports and attract investment in its manufacturing sector. Additionally, collaboration in technology transfer and education has become a focal point of the agreement, with Nigeria looking to tap into India’s expertise in IT and healthcare.
However, challenges persist, especially concerning trade imbalances and Nigeria’s over-reliance on crude oil exports. Policymakers are pushing for reforms that encourage higher local production of pharmaceuticals and technology products to reduce dependency on imports from India.
Nigeria-Turkey Trade Agreement
In recent years, Nigeria and Turkey have made significant strides in deepening their trade relations, particularly in construction, manufacturing, and defense. The Nigeria-Turkey Trade Agreement, updated in 2025, aims to enhance cooperation in various sectors, including textiles, machinery, and agricultural processing.
Turkey’s investment in Nigeria’s construction industry has grown significantly, with Turkish firms actively participating in infrastructure projects, including road networks, railways, and housing. Additionally, the agreement has opened doors for Nigerian agricultural products to enter the Turkish market, particularly sesame seeds, cocoa, and cassava.
Nevertheless, challenges related to bureaucracy, inconsistent trade policies, and infrastructural inadequacies continue to hinder the full potential of the agreement. Policymakers are advocating for a more streamlined process to facilitate smoother trade flows and enhance the mutual benefits of the partnership.
