Nigeria’s trade sector recorded a significant increase in foreign investment during the first quarter of 2026, attracting $65.79 million in capital inflows. This represents a 91.31 percent increase compared to the $34.39 million received during the same period in 2025, according to data from the National Bureau of Statistics (NBS).
The latest figures highlight growing investor confidence in Nigeria’s commercial activities and cross-border trade. However, despite the impressive year-on-year growth, investment inflows into the sector were lower than the amounts recorded in the second half of 2025. The trade sector attracted $80.94 million in the third quarter of 2025 and $119.21 million in the fourth quarter, suggesting that the pace of growth slowed slightly at the start of 2026.
The positive investment trend comes at a time when trade has become a major driver of Nigeria’s economy. The NBS reported that the trade sector contributed 17.89 percent to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2026, making it the largest contributor to the nation’s economic output during the period.
Speaking on the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the sector’s strong performance reflects improvements in the country’s economic environment.
According to him, greater exchange rate stability, improved access to foreign exchange, easing inflation, and rising business confidence have all contributed to increased commercial activities and stronger trade flows across the country.
While acknowledging the sector’s growing importance, Yusuf stressed that trade alone cannot guarantee long-term economic prosperity. He noted that sustainable growth requires stronger industrial production, increased local manufacturing, and greater value addition within the economy.
Experts believe that trade will play an even bigger role in Africa’s future economic growth, especially as countries continue to strengthen regional integration through the African Continental Free Trade Area.
The Chief Executive Officer of Seedtree Capital, Bowale Adeoye, said innovations in trade finance and logistics are transforming business activities across Africa.
She explained that new payment systems are reducing transaction costs and helping businesses settle payments faster. One example is the Pan-African Payment and Settlement System, which allows businesses to conduct transactions in local currencies, reducing dependence on the US dollar.
Adeoye also highlighted the importance of modern cold-chain logistics, noting that improved storage and transportation systems are helping preserve food products and pharmaceuticals while strengthening trade resilience across the continent.
She added that local production and value addition are becoming increasingly important for African countries seeking to remain competitive and reduce dependence on imports.
Similarly, the Chief Executive Officer of NAHCO Commodities Limited, Ijeoma Ezenwa, observed that Africa’s agricultural sector is gradually moving away from exporting raw commodities toward processing and value-added production.
According to Ezenwa, access to international markets now depends not only on production volumes but also on quality standards, traceability systems, and proper documentation. Agribusinesses that invest in technology and export readiness are better positioned to secure profitable markets and expand cross-border trade opportunities.
The Federal Government has also identified trade as a key pillar of its economic agenda for 2026. The Minister of Industry, Trade and Investment, Jumoke Oduwole, said the government plans to improve trade facilitation, boost exports, attract investments, and strengthen digital infrastructure.
Key initiatives include promoting locally made products, supporting industrial clusters, empowering women-owned businesses, revitalising the cotton and textile industry, and expanding the use of digital technologies and artificial intelligence in governance.
Meanwhile, Permanent Secretary Nura Rimi said efforts have been intensified to improve policy implementation and coordination across government agencies.
Overall, Nigeria’s total foreign capital inflows reached $10.37 billion in the first quarter of 2026, compared to $5.64 billion in the same period of 2025. Analysts believe that continued reforms, growing regional trade integration, and increasing investor interest could strengthen Nigeria’s position as one of Africa’s leading trade and business hubs in the years ahead.
