Despite decades of trade agreements and economic partnerships, Nigeria remains heavily dependent on crude oil exports, exposing the country to global price shocks and revenue instability.
Since independence, Nigeria has signed numerous bilateral and multilateral trade deals aimed at diversifying the economy. However, oil continues to account for the bulk of export earnings and foreign exchange inflows.
Economic experts attribute the failure to weak industrial policy, infrastructure deficits, and inconsistent implementation of trade agreements. They argue that Nigeria has focused more on market access than on building competitive local industries.
Manufacturing and agriculture, identified as key diversification sectors, have struggled with power shortages, logistics challenges, and limited access to finance.
Analysts also note that many trade deals favor imports rather than exports, worsening trade imbalances and undermining local production.
Recent efforts such as the African Continental Free Trade Area offer new opportunities, but experts warn that Nigeria must improve productivity to benefit meaningfully.
They recommend targeted industrialization, value addition, and export-oriented policies to reduce dependence on crude oil.
Until structural reforms are fully implemented, economists say Nigeria’s vulnerability to oil price fluctuations will persist.
