Trade, Diversification and Growth in Nigeria

Nigeria’s trade policy is at a crucial turning point. Historically, the country has had a very restrictive import regime that generated substantial transfers to domestic producers and strong anti-export bias. Yet, in its current poverty reduction strategy, Nigeria identified deeper trade integration as a means to foster economic growth and alleviate poverty. Border tariffs are being reduced, trade regulations are under review, and ambitious modernization programs for customs services and port infrastructure have been launched. The envisioned reforms involve far-reaching changes to the trade regime that promise to create new opportunities by improving the efficiency of production and consumption, while requiring adjustment of domestic producers to the new, more competitive economic environment.