Nigeria-China Trade: A Largely Undocumented Affair

The Nigerian envoy to China has revealed that a substantial amount of trade between Nigeria and China is not documented. This lack of documentation has significant implications for the economies of both countries. The envoy noted that the undocumented trade is a result of the informal nature of many business transactions between the two nations. Many Nigerian businesses, particularly small and medium-sized enterprises, prefer to conduct trade with Chinese companies without formal documentation. This is often due to the complexity and bureaucracy involved in formal trade agreements. As a result, the true value of trade between Nigeria and China is not accurately reflected in official statistics. The envoy emphasized the need for greater transparency and formalization of trade between the two countries. This would not only improve the accuracy of trade data but also increase revenue for both governments through taxes and duties. Furthermore, formalizing trade would also help to reduce the risk of illegal activities, such as money laundering and tax evasion. The Nigerian government has been working to improve trade relations with China, with a focus on increasing exports and reducing the trade deficit. However, the lack of documentation remains a significant challenge. The envoy called on Nigerian businesses to take advantage of the various trade agreements and initiatives between the two countries, such as the China-Africa Cooperation Forum. By formalizing trade, Nigerian businesses can access new markets and increase their competitiveness. The Chinese government has also been encouraging Nigerian businesses to participate in the Belt and Road Initiative, a massive infrastructure development project. Despite the challenges, trade between Nigeria and China has been growing steadily over the years. The envoy expressed optimism that with greater transparency and formalization, trade between the two countries can reach its full potential. The Nigerian government has also been working to improve the business environment, with a focus on reducing bureaucracy and increasing access to finance. This is expected to encourage more Nigerian businesses to engage in formal trade with Chinese companies. In addition, the government has been promoting the use of technology, such as e-commerce platforms, to facilitate trade between the two countries. Overall, the lack of documentation in trade between Nigeria and China is a significant issue that needs to be addressed. With greater transparency and formalization, both countries can benefit from increased trade and economic cooperation.

Source