Nigeria’s Ambassador to the Netherlands, Eniola Ajayi, has said that the country requires an exponential production volume of made-in-Nigeria goods and commodities to bridge the import-export discrepancy that has retarded the nation’s economic growth.

Speaking on ‘The Impact of International Trade on the Economic Growth of Nigeria,’ she said the nation’s economic growth has been on a roller-coaster for some time both locally but especially in international trade as the country faces trade barriers, tariffs, quotas, difficult regulations and unfair competition.

In a world where trade is a catalyst for economic growth, that spurs investments, creates jobs and boosts Gross Domestic Product (GDP), paying attention to international trade is essential.

She said this at the commemoration of the 135th anniversary of the Lagos Chamber of Commerce and Industry (LCCI), tagged: “Connecting the Dots.”

She recalled that since 2010, the GDP of Nigeria has not been able to keep pace with the country’s population growth.

In Q1 2023, Nigeria’s economic growth weakened as GDP fell from 3.3 per cent in 2022 to 2.4 per cent year-on-year. According to the World Bank, Nigeria’s economy is projected to grow at 3.3 per cent in 2023, 3.7 per cent in 2024 and 4.1 per cent in 2025. By implication, the deepening volatility in global trade as epitomised by the activities of the commodities and oil cartels, export controls, the COVID-19 pandemic, the Ukraine-Russia war, national and regional protectionism, and supply chain disruptions have all impinged on the economic growth of Nigeria.

To improve the country’s status quo, Ajayi advised that much attention should be given to trading activities in the country to enhance economic growth. She however asserted that the impact of international trade has led to a decline in the production of domestic commodities, as it elicits the increase in imported commodities due to the proportional increase in the consumption of those items and a decline in the domestic production of exportable commodities.

She called on Nigerians in Diaspora to get involved in the movement for local trade intensification in the country. “Diaspora participation in Nigeria’s business space will be a win-win situation, as it will spur investments,” she added.

Pointing out the challenges encountered by startups and existing businesses in Nigeria, Ajayi, stated: “There is a conscientious effort to decrease the interest rates on loans for our businesses.” She claimed that this would help businesses thrive better.

Laying emphasis on the importance of trade, she encouraged business owners to maximise the benefits enjoyed as members of the LCCI, with the proliferation of technological advancement. Reiterating the importance of trade, she said: “Trade is a catalyst for economic growth. It is through the power of trade that we transcend differences, nurture prosperity and cultivate global unity.”

President, LCCI, Michael Olawale-Cole, said that public policy advocacy is a core function of the Chamber, which is aimed at protecting the interests of businesses.

Expounding on the theme of the event, he said: “The chamber is committed to fostering interaction and networking with trade missions from different countries visiting Nigeria.”

Chairman of the membership and welfare committee, Ladi Smith, said that globalisation has impacted business trends as it draws the line of connectivity. “The new era of businesses depends on partnership, networking, and collaborations for survival,” he stated.

Adding that the Chamber has successfully recorded 179 companies from January 2023 till the last new members’ induction ceremony on June 1, 2023, Smith urged organisations to continually do business with integrity and the highest possible ethical standards.