Cameroon-Nigeria Trade Deficit: Capitalising On Highly Demanded Products As Panacea

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Cameroon-Nigeria Trade Deficit: Capitalising On Highly Demanded Products As Panacea

24 févr. 2022 15:22

Agricultural products and a few manufactured products like washing soaps, chocolate and milk amongst others, could fetch foreign currency for Cameroon from the huge Nigerian market.

C ameroon and Nigeria are naturally bound together geographically with close to 2000km of both land and maritime borders. The neighbouring countries also share some socio-cultural and economic similarities along the common borders. Economic relation between both countries is marked by trade which however is dominated by Nigeria according to available statistics. Recent statistics from Cameroon’s balance of payment reveals that Cameroon is not taking maximum advantage of Africa’s biggest economy and most populous nation. In fact, the figures speak for themselves as Cameroon is reported to have lost about FCFA 90 billion in the unbalance trade links between Cameroon and its neighbour.

With close to 200 million inhabitants in Nigeria, there is no doubt a huge market that requires goods and services. There is therefore a significant potential as the consumer market which needs to be satisfied. The Nigerian economy for now is highly dependent on oil and gas even though the Federal government is now focusing on economic diversification. Therefore, the Nigerian market is highly in need of agricultural products to feed the growing population as well as the bourgeoning industry. The Nigeria Bureau of Statistics projects population to 264 million by 2030 which indicates that even in the short or long term, the agricultural products needs of the country will remain intact. The country is also in dire need of energy and transport infrastructure as the International Trade Administration reports. At the moment, Cameroon is basically exporting agricultural products to Nigeria with little or no value added. These products include cereals (rice, millet and corn) vegetables like Eru (African Gnetum), tomatoes, pepper and other products like palm oil. Apart from palm oil, the other agricultural products are exported unprocessed, thus no value is added on them. Processed products like washing soap (liquid and solid soap), chocolate, liquid milk and vegetable oil are also in high demand from Cameroon. Iron bars and non-alloyed steel, aluminium works and aluminium parts also constitute Cameroon’s export to Nigeria according to customs information factsheet.

The huge Nigeria market is far from being satisfied as the demand keeps soaring. According to Joseph Musenga, a Cameroonian business operator specialized in maritime transport, agricultural products which constitute the main export products to Nigeria are not produced in large scale to meet local demand and the Nigerian market. He also blames the...