'Products mapping' and trade in agri-food products between Nigeria and the EU28

Abstract

This paper investigates the dynamics of comparative advantage in agri-food products between Nigeria and the European Union (EU28). Using ‘products mapping’ approach based on trade balance index (TBI), Balassa index (BI), Lafay index (LFI) and other descriptive approaches, the findings show that Nigeria substantially recorded adverse TBI in trading both with the world and the EU28. The share of total Nigerian food exports and imports which the EU28 accounted for, declined from 72% and 40% to 37% and 27% between 1995 and 2017, respectively. The findings of both BI and LFI reveals that between 1995 and 2017, Nigeria’s comparative advantages in trading in the world market declined from 12/46 to 8/46 food products. Similarly, Nigeria’s trade with the EU28 comparative advantages reduced from 12/46 to 9/46 food products. Inversely, the food products that Nigeria has comparative disadvantages and negative TBI in trading with the EU28 rose from 31/46 to 35/46. For Nigeria, to boost its exports and competitiveness, especially in products that the country has natural advantages in producing, there is an urgent need for increasing investment and implementing policies on domestic agricultural and food value chains.