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China tariff waiver puts Nigerian exports to test

Nigeria’s higher trade figures with China under its zero tariff policy have made product quality and local processing a major test for the country’s exporters.

The Federal Government, business and trade representatives in Abuja on Friday said Nigerian firms must turn raw materials into goods that can meet Chinese market standards.

The policy, which began on May 1, 2026, covers goods from 53 African countries and has already cut trading costs, but the government says the gains will depend on production capacity, certification, storage, finance and logistics.

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The seminar in Abuja was organised by the Centre for China Studies with the Chinese Embassy in Nigeria to examine the policy and practical ways to gain from it.

China Africa trade reached $207 billion in the first half of 2026, with Chinese imports from Africa hitting $29 billion between May and June.

Export gains show room for bigger business

Chinese Ambassador to Nigeria Yu Dunhai said total bilateral trade between China and Nigeria reached $18 billion in the first half of 2026, up 35 per cent from the same period last year. Chinese imports from Nigeria rose 80 per cent to $2.3 billion, with monthly growth above 40 per cent in May and June.

Yu said the tariff policy had reduced costs for Nigerian exporters. Every 100 tonnes of sesame sent to China saved $11,000 in costs, he said. Nigeria’s annual export of 7,000 tonnes of cattle bone granules saved nearly $450,000.

A shipment of 23,000 tonnes of Nigerian liquefied propane also saved $300,000 in taxes on the first day of the policy.

He said Chinese imports from Africa rose by about six per cent under the policy, with Nigeria recording particularly strong growth. He said China was ready to provide technical support for standardised production.

He also proposed an Agreement on Economic Partnership for Shared Development with China to turn tariff preferences into institutional guarantees.

The figures show immediate financial gains, but government representatives said the market would have limited economic effect without processed, certified and reliable goods in sufficient quantities.

Processing is the test Nigeria must pass

Minister of State for Agriculture and Food Security Aliyu Abdullahi said Nigeria should focus on exporting better products, not simply larger volumes of raw commodities.

He listed processed cassava derivatives, premium rice, spices, hibiscus, cashew blends, soybean products, fruits and vegetables as possible exports.

“Zero tariffs alone do not guarantee success,” Abdullahi said, noting that productivity, processing industries, logistics, quality assurance, traceability, financing and modern storage were also needed.

He said export certification and sanitary and phytosanitary compliance would be necessary for Nigerian producers to fully use the Chinese market.

Abdullahi said the Federal Government was expanding processing capacity through the Special Agro-Processing Zones Project.

He also listed technology, skills, research, investment partnerships, digital agribusiness and logistics as requirements for competitive value chains.

Permanent Secretary in the Ministry of Foreign Affairs Dunoma Ahmed said Nigeria should use the policy to turn natural resources into finished goods. Crude oil, he said, should support petrochemical and downstream industries; farm produce should feed agro-processing and manufacturing; and solid minerals should support mineral processing.

House Committee on Nigeria-China Relations Chairman Ja’afaru Yakubu identified infrastructure, logistics, finance, skills, technology and regulatory standards as constraints.

He also asked the Chinese Embassy to address visa bottlenecks affecting Nigerian traders, especially those from Kano and northern Nigeria.

Budget and Economic Planning representative Samson Ebimaro said Nigeria must improve domestic production capacity and competitiveness.

He listed agriculture, agro-processing, solid minerals, manufacturing, leather and creative industries as areas with export potential.

Centre for China Studies Director Charles Onunaiju said African countries should use the tariff policy as a starting point for structural economic transformation, improve internal production systems and use the African Continental Free Trade Area to build regional value chains and harmonise standards.

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