Nigeria’s trade sector attracted $65.79 million in foreign capital in the first quarter of 2026, marking a 91.31 per cent increase from the $34.39 million recorded in the corresponding period of 2025, according to data from the National Bureau of Statistics (NBS).
The sharp year-on-year rise signals renewed investor confidence in Nigeria’s commercial activities and cross-border trade, although inflows slowed compared to the stronger performance recorded in the second half of 2025.
NBS data showed that trade sector inflows were lower than the $80.94 million recorded in the third quarter of 2025 and the $119.21 million posted in the fourth quarter, indicating a moderation in momentum after two consecutive quarters of robust growth.
The sector’s growing importance to the economy was further highlighted by its emergence as Nigeria’s largest contributor to Gross Domestic Product (GDP) in the first quarter of 2026, accounting for 17.89 per cent of total output.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, attributed the sector’s strong performance to improving macroeconomic conditions, including greater exchange rate stability, improved foreign exchange liquidity, easing inflationary pressures and rising business confidence.
He noted that while the trade sector’s leadership position in GDP contribution reflects healthier commercial activity and trade flows, sustainable economic transformation would require stronger productive capacity, deeper industrialisation and increased domestic value addition.
Industry stakeholders believe trade will play an even greater role in driving economic growth across Nigeria and Africa as regional integration deepens under the African Continental Free Trade Area (AfCFTA).
Chief Executive Officer of Seedtree Capital, Bowale Adeoye, said innovations in trade finance and logistics are reshaping intra-African commerce by reducing transaction costs and settlement delays. She highlighted the growing role of platforms such as the Pan-African Payment and Settlement System (PAPSS) in enabling faster local-currency transactions and improving liquidity across African markets.
Adeoye also identified cold-chain logistics as a critical enabler of trade resilience, particularly in food preservation and pharmaceutical distribution, while stressing that local value addition has become essential for competitiveness and supply-chain resilience.
Similarly, Chief Executive Officer of NAHCO Commodities Limited, Ijeoma Ezenwa, said Africa’s agricultural sector is gradually shifting from exporting raw commodities to building value through agro-processing and integrated supply chains. She added that standards, traceability and quality assurance are increasingly determining market access and competitiveness.
The Federal Government has identified trade facilitation as a key pillar of its 2026 economic strategy. Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the ministry would focus on unlocking regional and global demand, strengthening export capacity, mobilising investment and leveraging digital infrastructure.
Key priorities include promoting Made-in-Nigeria products, developing industrial clusters, supporting women-led enterprises, revitalising the cotton, textile and garment value chain, and deploying digital governance and artificial intelligence tools.
Permanent Secretary of the ministry, Nura Rimi, said efforts have also been intensified to improve policy implementation, institutional coordination and operational efficiency to create a more predictable business environment for investors and manufacturers.
The broader NBS capital importation report showed that total foreign capital inflows into Nigeria rose to $10.37 billion in the first quarter of 2026, compared with $5.64 billion in the same period of 2025. While portfolio investments accounted for the largest share of inflows, foreign direct investment stood at $135.08 million.
Analysts say the combination of rising investor interest in the trade sector, ongoing business reforms and stronger regional integration could further position Nigeria as a leading hub for African commerce in the years ahead.
