The Future of International Trade and Nigerian Market Entry

According to the United Nations, the Nigerian population was about 181 million in 2014 and has risen to approximately 220 million in 2024. This shows a 24.15 % increase in population in the last 10 years.

For a country ranked as the 6th most populated country globally, fast-moving consumer goods, among others, have a good market in Nigeria.?No wonder most goods in an average supermarket and open market are foreign-made.

While Nigeria's market offers many opportunities, it also presents some challenges. One significant factor is the fluctuating exchange rate. In 2014, the exchange rate was relatively stable at N165 to $1. However, as of September 2024, the rate has ballooned to N1650 to $1. This substantial change has far-reaching consequences for both local and international trade, affecting import and export costs, profit margins, and overall business operations.

However, certain factors remained the same in the last 10 years and are likely to remain unchanged. Nigeria is a strategic location in West Africa, making it a hub for regional trade. When it comes to natural resources, Nigeria remains among the few countries globally with abundant oil, gas, and mineral deposits.

When it comes to agriculture, with over 98 million hectares and a suitable climate for growing various crops, Nigeria alone has the potential to feed the whole African continent - despite the challenges beseeching the economy.?

That's why, despite its economic challenges, Nigeria's market remains attractive to foreign investors. For every single foreign trade that withdraws from the Nigerian market, three new ones are eager to enter and tap into its potential.

According to the United Nations Conference on Trade and Development's (UNCTAD) World Investment Report 2020, Nigeria ranked 2nd in West Africa in terms of Foreign Direct Investment (FDI) inflows in 2019, demonstrating the country's enduring appeal to international investors. Post COVID economic recovery indicates strong performance in the technology, financial services and agriculture sectors.

Sometimes, unlocking the potential of Nigeria's market requires more than just data analysis and predictions. To truly tap into its vast opportunities, you’ll need a strategic approach. And whenever you are ready to take the first step towards exploring this promising market, we will be more than happy to guide you every step of the way, turning your ideas into tangible success in Africa's largest market!