Nigeria's trade deficit has ballooned to N14 trillion in the first half of 2025, driven by a sharp rise in manufactured goods imports valued at N15.39 trillion. Exports, however, lagged far behind, deepening the nation's trade gap.
Economic analysts warn the widening deficit could deplete foreign reserves and exert fresh pressure on the naira. They stress that reducing dependence on imported goods demands deliberate policies to strengthen domestic manufacturing.
Despite government efforts to boost local production, Nigeria remains heavily reliant on foreign-made products. Experts recommend incentives for local manufacturers, improved infrastructure, and the removal of regulatory bottlenecks to revive the sector.
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"Encouraging domestic production is not optional; it is critical for economic stability," an analyst said, urging limits on non-essential imports. Stakeholders also call for stronger collaboration between government, manufacturers, and investors to enhance competitiveness and create jobs.
Analysts believe that prioritizing local content, value addition, and manufacturing innovation is key to narrowing the deficit and stabilizing the economy in the long term.
