Increaseing Bangladesh- Nigeria Trade

By Oru Leonard

As concerns mount over the low volume of trade between Bangladesh and Nigeria, analysts say the solution lies not in more diplomatic visits, but in a decisive shift toward structured, business-driven engagement.

According to UN Comtrade, Trade between Nigeria and Bangladesh has been highly volatile and inconsistent. It started very low (2018–2019), surged sharply between 2020 and 2022—peaking in 2022 due to large Nigerian petroleum exports—then dropped in 2023 before showing moderate recovery in 2024–2025.

Despite cordial relations, bilateral trade between both countries remains far below its potential. Experts argue that without deliberate policies to remove barriers and connect businesses, trade will continue to stagnate.

Trade does not grow through goodwill visits—it grows through structured engagement, reduced friction, and mutual investment, what is needed now is commercial diplomacy. The courtesy calls to agencies and Ministries in the different sectors of the economy by the High Commissioner of Bangladesh to Nigeria, His Excellency Miah Md. Mainul Kabir, will no doubt grow the trade volume but Nigeria will also respond positively by establishing a Consulate in view of the rising transactions and interest in dealing with Bangladesh by the Nigerian citizens.

Moving Beyond Protocol
At the heart of the challenge is the need to reposition diplomatic missions as engines of economic activity. Rather than focusing on protocol, stakeholders say embassies should facilitate targeted business-to-business (B2B) matchmaking, particularly in high-impact sectors such as textiles, pharmaceuticals, agriculture, and ICT.

There is an urgent need to recognize and work with established Bangladesh–Nigeria business organizations driven by private sector players. Again, Trade officers must be evaluated by deals closed, not meetings attended.

Leveraging Natural Trade Synergies
Both countries possess complementary economic strengths that remain underutilized. Bangladesh has built global competitiveness in ready-made garments, pharmaceuticals, and light manufacturing, while Nigeria offers vast resources in crude oil, petrochemicals, and agricultural commodities such as sesame seeds, cocoa, and ginger.

The challenge, experts say, is transitioning from sporadic transactions to structured supply chains.
If properly aligned, these sectors can create a mutually beneficial trade ecosystem, but it requires planning, investment, and long-term commitment.

Breaking Barriers to Trade
One of the most pressing obstacles is the absence of preferential trade arrangements. Analysts recommend negotiating a bilateral trade agreement or limited tariff concessions to ease market access for key exports.

Additionally, poor logistics remain a major bottleneck. The lack of direct shipping routes between Bangladeshi ports and Nigerian terminals significantly increases costs and delays.
Improving connectivity—whether through shipping or air cargo for high-value goods like pharmaceuticals, critical.

Investment as a Catalyst
Beyond trade, experts stress the importance of encouraging cross-border investments. Bangladeshi textile firms, for instance, could establish manufacturing plants in Nigeria, leveraging local labor and accessing African markets.

Joint ventures in agro-processing and pharmaceuticals are also seen as high-impact opportunities.
“Trade grows faster when businesses invest locally,” Leonard said. “It creates jobs, builds trust, and deepens economic ties.”

Digital and Financial Integration
Strengthening financial systems is another priority. Limited correspondent banking relationships and heavy reliance on the US dollar complicate transactions between both countries.

To address this, analysts suggest exploring local currency trade arrangements, export credit guarantees, and fintech-driven payment solutions.
At the same time, digital trade platforms and e-commerce integration could open new channels for small and medium-sized enterprises (SMEs).

Unlocking New Frontiers
Emerging areas of cooperation—including agriculture, ICT services, contract farming, and infrastructure development—offer further opportunities to scale trade.
Bangladesh’s expertise in high-yield, climate-adaptive agriculture could complement Nigeria’s vast arable land, while its growing tech sector presents opportunities for outsourcing partnerships.
“Capacity building is key,” Leonard added. “Training Nigerian SMEs on export readiness and fostering ICT collaboration will create long-term value.”

The Bottom Line
While both nations share friendly diplomatic ties, expert warns that goodwill alone is insufficient to drive economic growth.

Without deliberate trade facilitation measures, bilateral trade will remain underwhelming, but with the right strategy, Nigeria–Bangladesh trade could expand significantly within just a few years.

For policymakers and business leaders, the message is clear: the future of this partnership depends not on words, but on action.

A delibrate swift shift from courtesy calls to Commerce can unlock great trade potential between Nigeria and Bangladesh.

Cover Photo Caption: H.E. Mr. Miah Md. Mainul Kabir, High Commissioner of Bangladesh to Nigeria, during a courtesy call on the Director-General of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha Audu, at her office, recently to discuss issues of importance and scopes to enhance trade and investment relationship between Bangladesh and Nigeria.