NIGERIA AND THE DYNAMICS OF GLOBAL TRADE

Abstract

Nigeria, often described as “Africa‟s giant” due to its large population, vast landmass, and abundant natural resources including solid minerals, water, and crude oil, as well as its extensive human capital, is expected to exemplify socio-cultural, political, and economic prosperity. It should function as a major reservoir of wealth comparable to the world‟s most economically advanced nations. However, its historical and contemporary realities contrast sharply with this potential. Using historical and analytical approaches, this paper examines the gap between Nigeria‟s vast potential and its actual performance in trade with neighbouring countries and the wider international community. It also assesses Nigeria‟s participation in global trade from independence in 1960 to the present. This paper discovers that despite its significant economic endowments, Nigeria has struggled to effectively harness its resources to strengthen its position in the global economy. The emergence of the “Dutch Disease,” characterized by dependence on a mono-product oil economy, particularly following the oil boom of the 1970s and 1980s, alongside persistent failure to diversify the economy, recurring balance of payments deficits, global trade inequalities between the Global North and South, widespread corruption, and other structural challenges, contributed to an economic decline from the mid-1980s that continues today. Consequently, Nigeria remains heavily dependent on oil revenues and external borrowing to finance its annual budgets, raising serious concerns about long-term economic sustainability and the welfare of future generations.