The Nigerian Export Promotion Council (NEPC) and the National Bureau of Statistics (NBS) have joined forces to tackle the significant challenge of undocumented informal cross-border trade, a phenomenon that has resulted in substantial revenue loss for Nigeria. This partnership, formalized through a Memorandum of Understanding (MoU), aims to develop a robust framework for capturing export data from informal trade routes, thereby enhancing the accuracy of national trade statistics and facilitating more effective policy planning. The collaboration was spurred by the discovery that over $31.8 million worth of goods were exported informally in certain months of 2024, highlighting the urgent need for a more comprehensive approach to trade data collection.
Informal cross-border trade, often overlooked in official records, plays a crucial role in Nigeria’s economy. It provides livelihoods for countless individuals, strengthens regional supply chains, and contributes significantly to national and continental economic resilience. However, the lack of proper documentation hinders effective policymaking and undermines Nigeria’s position in trade negotiations. The NEPC has identified high levels of undocumented export activities across several border states, including Kano, Jigawa, Kebbi, Zamfara, Katsina, Sokoto, Lagos, Ogun, and Adamawa. A stark example of this unrecorded trade is the informal export of 1.6 million bags of onions to neighboring countries, a significant economic activity that went completely untracked in official export statistics. This partnership with the NBS aims to bring these hidden transactions to light, providing a more complete picture of Nigeria’s trade landscape.
The current trade data primarily captures formal sector activities, leaving a significant blind spot regarding informal trade, despite its substantial volume and economic impact. While formal non-oil exports in 2024 amounted to US$5.456 billion, this figure fails to account for the millions of dollars generated through informal channels. This data gap not only hinders accurate economic planning but also weakens Nigeria’s negotiating power in regional and global trade discussions. It also deprives informal traders, many of whom are women, youth, and small and medium-sized enterprises (SMEs), of the recognition and support they deserve. The collaboration between the NEPC and the NBS seeks to rectify this imbalance and ensure that the full spectrum of Nigeria’s export trade activity is accurately represented.
The Statistician General of the Federation, Adeyemi Adeniran, acknowledged the significance of this partnership, emphasizing the need for a more comprehensive approach to trade data collection. He pointed out that the current data gap hinders evidence-based policymaking, limits Nigeria’s ability to engage effectively in trade negotiations, and distorts the accuracy of macroeconomic indicators. Traditional trade measurement systems, with their focus on formal transactions, have overlooked the dynamic and significant contribution of informal trade routes. This collaboration with the NEPC presents a crucial opportunity to rectify this oversight and align Nigeria’s economic statistics with the realities of its diverse trade activities.
Informal trade, particularly in Sub-Saharan Africa, represents a substantial portion of intra-African trade, with Nigeria playing a major role due to its extensive and porous borders. These unrecorded transactions represent not just gaps in data but also gaps in understanding the economic realities and well-being of millions of Nigerians who rely on informal trade for their livelihoods. The collaboration between the NEPC and the NBS is expected to enhance institutional capacities, improve regulatory coherence, and establish Nigeria as a regional leader in trade statistics. This initiative aims to empower policymakers with the data they need to formulate more effective border policies, strengthen food security, support SME development, and monitor regional integration efforts.
Capturing informal trade data will provide valuable insights into the full extent of Nigeria’s economic activity, enabling more effective policy interventions and supporting the growth of this vital sector. By working together, the NEPC and the NBS aim to shed light on the often-overlooked contributions of informal traders, ensuring that their activities are recognized, supported, and integrated into the national economic framework. This initiative holds the promise of fostering more inclusive economic growth and enhancing Nigeria’s position in the global trade arena.
