Nigeria Launches National Export Trading Company to Boost Micro, Small, and Medium-Sized Enterprises' Export Growth

Strategic Insights -

Nigeria's Federal Ministry of Industry, Trade and Investment, in partnership with the Nigeria Commodity Exchange, Afreximbank, and the Africa Trade and Distribution Company, has introduced a national joint project to support micro, small, and medium-sized enterprises (MSMEs) in joining the export business under the African Continental Free Trade Area (AfCFTA). This project marks a significant step towards addressing longstanding challenges in the export market, particularly for smallholder farmers and informal cross-border traders. The National Export Trading Company will provide essential services such as market intelligence, logistics, finance, and aggregation to help MSMEs meet global demand and attract investors.

Key Takeaways:

  • Nigeria has launched a national joint project to support MSMEs in joining the export business under AfCFTA, aiming to increase non-oil exports.
  • The National Export Trading Company will provide market intelligence, logistics, finance, and aggregation services to support MSMEs in meeting global demand and attract investors.
  • The project will address fundamental challenges to productivity, particularly in the farms, by investing in aggregation, traceability, warehousing, and structured market access.
  • The Ministry of Trade has giazzated zero duties under Africa and opened a new Air Cargo trade corridor with 13 eastern and southern African countries.
  • The project is expected to align capital with capacity, connect local projects to global institutions, and engineer platforms that unlock inclusive, long-term growth.
  • Nigeria has over 38 million smallholder farmers, producing 90 percent of the country's food, yet many lose 30 to 50 percent of their output before it reaches a buyer.
  • The National Export Trading Company will create a pathway for farmers and MSMEs to access formal regional and global markets.

Statistics:

  • Nigeria has over 38 million smallholder farmers.
  • Total output loss for smallholder farmers before reaching a buyer: 30 to 50 percent.
  • Expected investment in the project: Not specified.
  • Value of transactions tracked by the Ministry of Trade: Over $400 million.
  • Number of eastern and southern African countries partnered in the new Air Cargo trade corridor: 13.