In a significant move to address the unrecorded transactions in the country’s export trade, the Nigerian Export Promotion Council (NEPC) and the National Bureau of Statistics (NBS) have signed a Memorandum of Understanding (MoU) aimed at improving the tracking and documentation of informal cross-border trade. This collaboration comes after reports that Nigeria lost over $31.8 million worth of goods due to undocumented export activity in some months of 2024.
The agreement, signed in Abuja, is designed to create a comprehensive framework to capture export data from informal trade routes, a segment that has long been a blind spot in Nigeria’s trade statistics.
A Growing Concern
The NEPC’s Head of Corporate Communications, Ndubueze Okeke, described the MoU as a pivotal step in filling the data gaps surrounding Nigeria’s export records, which will ultimately improve policy planning for non-oil exports. Nonye Ayeni, the Executive Director of the NEPC, emphasized that informal cross-border trade is not a marginal or secondary activity. Instead, it plays a vital role in the economy by supporting livelihoods, strengthening regional supply chains, and contributing to the continent’s economic resilience.
According to Ayeni, NEPC offices in border states like Kano, Jigawa, Kebbi, Zamfara, Katsina, Sokoto, Lagos, Ogun, and Adamawa have consistently observed high levels of undocumented export activities. One of the most striking examples of this informal trade is the export of over 1.6 million bags of onions an essential commodity traded across borders without official records. The movement of goods through informal routes to neighboring countries like Ghana, Côte d’Ivoire, Benin, Cameroon, Congo, and Niger Republic remains largely invisible to national trade statistics.
The Economic Implications
This hidden sector, which goes largely unrecognized in national data, has significant economic implications. According to Ayeni, informal trade has represented millions of dollars in goods and services but has never been captured in official export records, thus undermining the accuracy of Nigeria’s economic statistics. For instance, in 2024, official export records show that 7.291 million metric tonnes of non-oil products, valued at $5.456 billion, were exported. However, this data excludes informal trade, leaving policymakers with an incomplete picture of the country’s trade landscape.
“The absence of these figures weakens Nigeria’s position in regional and global trade negotiations,” Ayeni explained. “It also denies informal traders, particularly women, youth, and MSMEs, the recognition and support they need to thrive.”
A Collaborative Solution
The partnership between the NEPC and the NBS is seen as an important step in addressing this imbalance and capturing the full range of Nigeria’s export trade activity. The Statistician-General of the Federation, Adeyemi Adeniran, acknowledged that this collaboration would be essential in bridging the data gap and ensuring a more accurate reflection of the nation’s economic health.
Adeniran noted that traditional trade measurement systems have long focused primarily on formal, large-scale transactions, often overlooking the vibrant and essential informal trade routes. He also pointed out that informal trade in Sub-Saharan Africa accounts for 20 to 40 percent of intra-African trade, with Nigeria contributing a significant share due to its vast and porous borders.
“These are not just gaps in data; they represent gaps in our understanding of the economic life of millions of Nigerians who depend on informal trade for their livelihoods,” Adeniran stated.
A Strategic Intervention
The initiative is expected to foster better border management, enhanced food security, and the development of small and medium-sized enterprises (SMEs). Additionally, it will aid in regional integration efforts, providing clearer insights into cross-border trade dynamics.
“By integrating informal trade data, we can design smarter border policies, bolster food security, and support the growth of small and medium enterprises,” Adeniran said. “This collaboration offers a timely opportunity to harness current trends and create data-driven strategies for Nigeria’s future economic growth.”
This move to formalize and track informal trade data is expected to improve Nigeria’s position as a leader in regional trade statistics, enhance institutional capacities, and promote inclusive economic growth.
