Nigeria’s Trade Sector Attracts $65.79m Foreign Investment in Q1.
Nigeria’s trade sector attracted $65.79m in foreign capital in the first quarter of 2026, representing a 91.31 per cent increase from the $34.39m recorded in the corresponding period of 2025, despite a slowdown from the strong inflows recorded in the second half of last year.
Data from the National Bureau of Statistics’ capital importation report showed that foreign investment into the trade sector rose 91.31 per cent year-on-year, underscoring renewed investor confidence in commercial activities and cross-border trade.
The latest inflow, however, fell below the $80.94m recorded in the third quarter of 2025 and the $119.21m attracted in the fourth quarter of 2025, indicating that momentum moderated after two consecutive quarters of strong growth.
The development came as the National Bureau of Statistics National Bureau of Statistics Nigeria reported that trade emerged as the single largest contributor to Nigeria’s Gross Domestic Product in the first quarter of 2026, accounting for 17.89 per cent of total output.
Commenting on the GDP performance, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the sector’s strong contribution reflected improving macroeconomic conditions.
“One of the most significant highlights of the report is the emergence of the trade sector as the single largest contributor to GDP at 17.89 per cent. This reflects the positive effects of improved exchange rate stability, better FX liquidity conditions, easing inflationary pressures and recovering business confidence on commercial activities and trade flows,” Yusuf said.
He, however, cautioned against relying solely on commerce for economic growth. “However, sustainable economic transformation cannot be driven by commerce alone. Long-term growth resilience requires stronger productive capacity, deeper industrialisation and significantly higher domestic value addition,” Yusuf said.
Industry experts also projected that trade would play an increasingly important role in driving growth across Nigeria and the African continent as governments and businesses deepen regional integration under the African Continental Free Trade Area.
In her contribution to The Boardroom Africa 2026 Industry Trends Report, the Chief Executive Officer of Seedtree Capital, Bowale Adeoye, said innovations in trade finance and logistics would accelerate cross-border commerce.
“Trade finance innovation is reshaping intra-African commerce. The shift from dollar-intermediated systems toward continental payment infrastructure is reducing transaction costs and settlement delays while addressing Africa’s $100–120bn trade finance gap,” Adeoye said.
Adeoye observed that platforms such as the Pan-African Payment and Settlement System are helping businesses settle transactions faster in local currencies, thereby improving liquidity and lowering trading costs across African markets.
She also highlighted the growing importance of cold-chain infrastructure in supporting trade resilience. “Cold chain logistics is becoming a critical enabler of Africa’s trade resilience. Historically underdeveloped, the sector is shifting toward technology-enabled, asset-light models that address food preservation and pharmaceutical integrity,” Adeoye remarked.
The Seedtree Capital chief added that local value addition had become a competitive necessity for African economies. “Localisation is no longer aspirational; it is foundational to competitiveness, tariff optimisation, and supply resilience,” Adeoye said.
Similarly, the Chief Executive Officer of NAHCO Commodities Limited, Ijeoma Ezenwa, said Africa’s agricultural sector was increasingly moving from raw commodity exports to value creation through processing and integrated supply chains.
“African agriculture is shifting from exporting raw commodities toward building value through agro-processing and more integrated value chains,” Ezenwa said.
She noted that trade competitiveness was becoming increasingly tied to standards, traceability and quality assurance.
“Market access is increasingly determined by standards, traceability, and quality assurance, not production volumes alone. Agribusinesses investing in digital traceability, structured farmer onboarding and training, and export-ready documentation are securing stronger pricing, more dependable off-take relationships, and smoother cross-border trade,” Ezenwa said.
The Federal Government has also identified trade facilitation as a key pillar of its economic strategy for 2026.
In the Ministry of Industry, Trade and Investment’s 2026 outlook, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the ministry would focus on unlocking global and regional demand through trade facilitation, strengthening export supply, mobilising investment and leveraging digital infrastructure.
The ministry’s priorities include a national Made-in-Nigeria campaign, industrial cluster development, support for women-led businesses, transformation of the cotton, textile and garment value chain, and the deployment of artificial intelligence and digital governance tools.
The Permanent Secretary of the ministry, Nura Rimi, said the ministry had intensified efforts to improve policy implementation and coordination.
“In 2025, the Ministry continued to discharge its mandate to drive industrialisation, promote trade, attract investment, and support economic diversification, with emphasis on effective implementation, institutional coordination, and operational discipline across departments and agencies,” Rimi said.
He added, “These institutional linkages provided greater clarity and consistency for manufacturers, businesses, and investors interacting with government processes.”
The broader capital importation report showed that total foreign capital inflows into Nigeria rose to $10.37bn in the first quarter of 2026, up from $5.64bn in the corresponding period of 2025. Portfolio investment accounted for the bulk of inflows, while foreign direct investment stood at $135.08m.
Analysts said the trade sector’s rising attractiveness to investors, combined with growing regional integration and reforms aimed at easing business transactions, could strengthen Nigeria’s position as a major hub for African commerce in the coming years.
