Oil crash exposes Nigeria’s marginal global trade influence

Crash in oil price has exposed Nigeria’s little influence in the international trade circle as non-oil exports fail to make significant impact to shore up foreign exchange, experts have said.

The crude oil price has fallen by over 50 percent since 2014. This has reduced Nigeria’s international bargaining and bragging powers as major trading partners such as USA have withdrawn oil patronage. China and India have both been revising Nigeria’s trading options in light of downturn in their economic forecasts.

Incidentally, non-oil exports, which could have helped retain the country’s earlier position, have declined from $2.97 billion recorded by the end of 2013 to $2.43 billion in 2014, according to data compiled by Cobalt International Services and released by the Nigerian Export Promotion Council (NEPC).

“The truth of the matter is that Nigeria exercises marginal influence on global trade and the drastic reduction in the country’s oil sales abroad as a result of the collapse of the international oil market in the recent past has rendered the country’s interests expendable,” said Akin Oyebode, professor of international law and jurisprudence, in a paper presented at a foreign policy dialogue organised by the Lagos Chamber of Commerce and Industry, last week.

According to Oyebode, Nigeria’s only option now is individual self-reliance and cooperation and collaboration with new trade and financial arrangements being proffered by China in contradistinction with those of the Bretton Woods institutions.

Remi Bello, president, LCCI, said economic interest of any country should be a principal factor in shaping its foreign policy, saying that the increasing globalisation of economies around the world had led to high interdependence among countries.

“In all these, our domestic policies must be right to strengthen the capacity of the domestic private sector to take advantage of the foreign expolicy benefits,” said Bello.

Akinwunmi Ambode, Lagos State governor, represented by Tunji Bello, secretary to the government, said to promote investment in the economy, the state had established Office of Overseas and Investment (Lagos Global), targeted as making the largest Nigerian economy a ‘one-stop shop’ through which investors and business owners can relate with the government.

“The goal of providing job opportunities for our teeming unemployed youths is hinged on a strong and vibrant economy driven by the private sector. I wish to assure you of our commitment to walk our talk and make life more comfortable and safe for everyone in the state,” Tunji Bello said.