Trade statistics serve as the backbone of economic planning, investment decisions, and policy formulation. For Nigeria, Africa’s largest economy and a key player in global trade, accurate and transparent trade data is essential for effective economic management. However, persistent challenges in data collection, reporting inconsistencies, and lack of transparency undermine the credibility of Nigeria’s trade figures, leading to misguided policies, revenue losses, and weakened investor confidence. In an era where economic Decisions are increasingly driven by data analytics and digital intelligence, Nigeria must prioritise the integrity of its trade statistics to ensure proper monitoring, tracking, and management of trade volumes. A robust trade data system will not only strengthen Nigeria’s global trade position but also enhance domestic revenue mobilisation, economic forecasting, and industrial planning.
The Current State of Nigeria’s Trade Statistics – Nigeria’s trade data is primarily managed by:
The National Bureau of Statistics (NBS), responsible for compiling national trade statistics. The Nigerian Customs Service (NCS) tracks import and export flows at ports and border points. The Central Bank of Nigeria (CBN) monitors trade-related foreign exchange transactions. The Federal Ministry of Industry, Trade, and Investment (FMITI) – oversees trade policies and agreements. Despite the presence of these institutions, Nigeria faces significant challenges in trade data accuracy and transparency, leading to discrepancies in reported figures and distortions in economic planning.
Key challenges affecting Nigeria’s trade statistics
1. Inconsistent and Contradictory Trade Reports
– There are frequent mismatches between NBS, CBN, and Customs trade reports, raising concerns about data credibility.
– Nigeria’s reported trade volumes often differ from partner countries’ records, indicating possible underreporting or misclassification of trade flows.
2. Widespread Informal Cross-Border Trade (ICBT)
– Nigeria has a vast informal economy, with unregistered trade activities occurring at land borders with Benin, Niger, and Cameroon.
– The lack of proper documentation and monitoring of informal trade results in huge gaps in official trade statistics.
– Smuggling and unrecorded transactions distort Nigeria’s actual export and import volumes, leading to revenue leakages.
3. Customs Underreporting and Fraudulent Documentation
– Importers and exporters sometimes under-declare cargo values to evade duties, leading to fiscal revenue losses.
– The use of fake documentation and misclassification of goods results in incorrect trade volume figures.
4. Lack of Digital Integration Among Trade Agencies.
– Nigeria’s trade data systems are fragmented, with NBS, NCS, CBN, and FMITI operating in silos without real-time data sharing.
– The absence of a centralised digital trade database prevents accurate tracking of trade flows and weakens regulatory oversight.
5. Challenges in Measuring Services Trade
– While Nigeria’s goods trade data is monitored (albeit with gaps), trade in services (ICT, financial services, logistics, and consulting) remains poorly documented.
– Inadequate tracking of Nigeria’s booming digital economy and remittance flows leads to an incomplete picture of trade performance.
Without urgent reforms, Nigeria risks continuing revenue losses, weak economic planning, and reduced global trade competitiveness.
Why accurate and transparent trade statistics matter
1. Strengthening economic planning and policy formulation
Reliable trade data is critical for designing effective industrial, trade, and fiscal policies.
– Governments and businesses need accurate import and export figures to plan infrastructure, manufacturing, and investment strategies.
2. Enhancing revenue collection and fiscal management
Smuggling and customs underreporting cause Nigeria to lose billions of dollars annually in uncollected tariffs and duties.
– Strengthening trade statistics will boost tax compliance, increase customs revenue, and reduce fiscal deficits.
3. Improving Nigeria’s Global Trade Position – Nigeria’s inaccurate trade reporting affects its credibility in international trade negotiations.
– Proper trade data tracking will help Nigeria leverage the African Continental Free Trade Area (AfCFTA) and boost regional trade integration.
4. Attracting Foreign Direct Investment (FDI)
– Investors rely on credible trade statistics to assess market opportunities.
– A transparent trade data system will enhance Nigeria’s reputation, attracting more FDI into manufacturing, agriculture, and logistics.
5. Ensuring Supply Chain Security and Consumer Protection
– Proper tracking of imports helps prevent the entry of substandard and unsafe goods into the domestic market.
– Accurate trade data ensures better monitoring of food safety, pharmaceuticals, and industrial goods to protect Nigerian consumers.
Recommendations for Strengthening Nigeria’s Trade Data Accuracy and Transparency
To address these challenges, Nigeria must implement structural reforms and adopt advanced data management technologies to ensure credible trade statistics.
1. Establish a centralised digital trade data platform
Integrate NBS, NCS, CBN, and FMITI databases into a unified system for real-time trade data tracking.
– Introduce blockchain technology for tamper-proof trade documentation and reporting.
2. Strengthen Customs Monitoring and Trade Compliance
– Deploy AI-driven automated scanning and tracking systems at ports and land borders to reduce underreporting.
– Implement mandatory e-invoicing and digital trade documentation to eliminate fraudulent trade declarations.
3. Enhance Informal Cross-Border Trade (ICBT) Documentation
– Develop formal trade corridors with simplified registration processes for small-scale traders.
– Utilise mobile trade registration apps to capture unrecorded trade activities.
4. Improve Measurement of Services Trade and Digital Transactions
– Establish a National Services Trade Observatory to track ICT, fintech, and professional services exports.
– Work with banks, fintech companies, and telecom providers to document digital trade flows.
5. Boost Capacity Building for Trade Agencies and Statistical Units
– Train customs officials, statisticians, and trade analysts on advanced trade data collection methodologies.
– Strengthen collaboration with international organisations (WTO, IMF, UNCTAD) for technical support and data verification.
6. Increase Public and Stakeholder Access to Trade Data
– Publish quarterly and annual trade reports with detailed sectoral insights to improve transparency.
– Engage business communities, researchers, and policymakers in trade data discussions to enhance accountability.
In today’s globalised economy, data is as valuable as oil. Nigeria cannot afford to operate in an environment where trade statistics are inconsistent, incomplete, or manipulated. The stakes are high—economic planning, revenue generation, investment decisions, and trade policy formulation all depend on reliable trade data.
To strengthen Nigeria’s economic position, attract investment, and fully benefit from AfCFTA, the government must:
Enforce transparency in trade reporting.
Leverage technology for real-time trade tracking.
Eliminate revenue leakages from customs fraud and smuggling.
Provide accurate trade data to investors and global markets
Nigeria’s economic future hinges on its ability to manage trade data with precision and accountability.
Victor Liman is a trade policy advisor and institutional reform strategist. He previously served as Nigeria’s Chief Trade Negotiator and Acting Director-General of the Nigerian Office for Trade Negotiations. He was also the Head and Trade Commissioner, Nigeria Regional Investment and Trade Office, Shanghai, China; with a concurrent mandate to oversee the South Asian countries’ trade relations with Nigeria. vboffiong@gmail.com (+234 90300 5257)
