Nigeria rises to 4th place in country rankings – African Trade Barometer Report 2023

Stanbic IBTC Holdings, a member of Standard Bank Group, has shared some of its latest findings from the Africa Trade Barometer 2023 Issue three report. The report, which assesses key economic indicators in Africa highlights several noteworthy developments across African countries.

According to the latest Africa Trade Barometer, Nigeria has moved up four positions from 8th to 4th in the country rankings. The recently launched and highly anticipated Africa Trade Barometer provides valuable insights into Africa’s trade dynamics and opportunities. This edition highlights Nigeria’s significant role in shaping the continent’s trade landscape, comprehensively analyzing its current state and prospects.

The index rankings are based on seven thematic categories, including trade openness, access to finance, macroeconomic stability, infrastructure, foreign trade, governance economy, and trade financial behaviour. Changes in a country’s ranking are driven by changes in their aggregate score and relative ranking against other countries. Rankings are relative to the ten countries in the index and pegged on a scale of 0 -100.

South Africa has the highest Tradability Index, while Angola has the lowest. Nigeria’s improvement in the Trade Barometer ranking is due to advances in the Quantitative Trade Barometer (QTB) and Survey Trade Barometer (STB) rankings. The country moved up from position 7 to 4 in the Standard Bank (SB) QTB ranking and from 8 to 5 in the SB STB ranking. This achievement is attributed to significant improvements in business confidence scores, ease of access to credit, and government support for trading activities.

The report also deeply examines Nigeria’s export and import statistics, showcasing its major trading partners and critical industries. By analysing the country’s trade policies and emerging trends, stakeholders gain a holistic understanding of the Nigerian market and its growth potential.

One of the critical areas of focus within the report is identifying challenges Nigerian businesses face in international trade. It delves into infrastructure gaps, regulatory complexities and logistical bottlenecks; consequently offering insight into strategic measures taken by the Nigerian government to address these issues and enhance trade competitiveness.

The 2023 African Trade Barometer highlights the policies and initiatives implemented by Nigeria to attract foreign direct investment (FDI) and promote trade diversification. The report explores investment opportunities in sectors such as agriculture, manufacturing, technology, and renewable energy, providing a valuable resource for local and international businesses seeking to expand their operations in Nigeria.

“We are excited about this comprehensive report, specifically focusing on Nigeria, which plays a pivotal role in African trade,” said Wole Adeniyi, Chief Executive, Stanbic IBTC Bank.

“Through our detailed analysis, we provide stakeholders with a deep understanding of Nigeria’s trade landscape, the challenges, opportunities and potential for growth. This report will contribute significantly to Africa’s overall trade narrative,” Wole said.

The 2023 African Trade Barometer is a valuable resource for policymakers, investors, entrepreneurs and researchers interested in unlocking the potential of Africa’s trade ecosystem. By shedding light on Nigeria’s trade dynamics, this report guides informed decision-making, enabling stakeholders to engage effectively with the Nigerian market.

To read the full report, click here