‘Products Mapping’ and Agri- Food Trade between Nigeria and ECOWAS Member Countries

Abstract

Intra-ECOWAS trade and food evxports have been debated and given attention in recent years. The paper uses an analytical tool, called ‘products mapping’ following some methods, such as trade balance index, Balassa index and Lafay index to analyse comparative advantages in all 46 food items (SITC 0 + 1 + 22 + 4) in trade between Nigeria and ECOWAS as well as the world. The findings suggest that Nigeria has performed better in trading with other ECOWAS countries than in trading with the overall world market. For Nigeria and the world, the findings reveal that the country’s comparative advantages reduced from 12 out of 46 (12/46) in 1995 to 8/46 food products in 2017. The notable products that reveal comparative advantages and positive TBI are cocoa (SITC 072), crustaceans (SITC 036), fruits and nuts (SITC 057); and oil seeds and oleaginous fruits (SITC 222). Contrary to Nigeria’s trade with the world, the results suggest that the country’s comparative advantages in trading with ECOWAS countries rose from 19/46 in 1995 to 26/46 food products in 2017. The notable products that show comparative advantages and positive TBI are tobacco, edible products, maize and wheat. Inversely, food products with comparative disadvantage and adverse TBI, slightly reduced from 18/46 in 1995 to 17/46 in 2017. The findings further suggest that the structure of Nigeria’s food trade with ECOWAS has started involving and improving, albeit at a slow pace. There is an urgent need to stimulate domestic food production and food processing industries for domestic consumption and exports. Regional and national agricultural policies should be dramatically implemented for self-sufficiency and more comparative advantages and the number of positive TBI to be ensured and sustained.

Keywords

• agri-food
• comparative advantage
• food products
• intra-ECOWAS
• Lafay index