Beyond zero-tariffs, seek real gains

China’s decision to grant zero-tariff access to exports from Nigeria alongside other African countries has understandably generated excitement among exporters and policymakers. The policy, which took effect this month, is being projected as a major boost for African trade and economic cooperation with Beijing. Nigerian products such as sesame, ginger, cocoa, cashew and other agricultural commodities are expected to enjoy easier access into the vast Chinese market. This is a departure from many developed countries who currently introduce measures to further curtail imports. For Nigeria, this development comes at a time when the country is desperately searching for ways to expand non-oil exports, diversify foreign exchange earnings and reduce dependence on crude oil. It is, therefore, appropriate to welcome the initiative as an export-promoting opportunity capable of opening new economic windows for local producers and exporters. However, it is our considered position at Daily Trust that while the prospects appear attractive, Nigeria must approach the development with caution, clarity and strategic thinking. International trade is never built on charity or sentiment. Every country designs policies primarily to advance its national interest. China is no exception. While the policy may create opportunities for Africa, Beijing’s broader objective is also to secure reliable markets, raw materials and long-term economic influence. Nigeria must, therefore, engage this new arrangement from the standpoint of national benefit rather than excitement over preferential access alone. The first danger is that Nigeria may become trapped deeper in the role of a raw material supplier if deliberate measures are not put in place to encourage value addition before export. Africa’s trade relationship with China has historically been dominated by exports of crude oil, minerals and unprocessed agricultural commodities, while finished products flow in the opposite direction. That pattern has contributed little to industrialisation on the continent. If Nigeria simply exports ginger, sesame, cocoa and cashew in larger quantities in their raw forms without building local processing capacity, the country will merely deepen dependence on commodity exports while foreign economies reap the greater value from processing, packaging and manufacturing. This is why the government must urgently see the tariff window as an opportunity to industrialise agricultural exports rather than merely increase shipment volumes. There is also the serious risk of domestic shortages and price distortions if proper safeguards are not introduced. Several reports have highlighted how Nigeria is already witnessing the impact of aggressive export demand on the local availability and prices of commodities such as ginger, sesame and other agricultural produce. Without incentives for expanded cultivation and structured investments in agriculture, exporters may simply mop up available products for shipment abroad in pursuit of higher returns, leaving local consumers and industries struggling with scarcity and rising costs. Nigeria cannot afford export opportunities that undermine domestic food security or cripple industries dependent on agricultural inputs. The government must, therefore, improve agricultural productivity through farmer incentives, better storage and transportation systems, mechanised farming and, above all, improved security. Hundreds of thousands of hectares of arable land remain uncultivated because of insecurity and expanding ungoverned spaces. Farmers must be able to safely return to their farms if the country hopes to boost productivity for both local consumption and export. Beyond agriculture, Nigerian authorities must also strengthen standards, regulations and trade procedures to protect the local market and national economic interest. Trade liberalisation without safeguards can expose weak economies to exploitation. Proper standardisation, export monitoring and quality control systems must be institutionalised to ensure that Nigerian products meet international requirements while local producers are protected from unfair practices. Equally important is the nature of engagement with Chinese interests. While there is nothing inherently wrong with Chinese buyers dealing directly with Nigerian farmers and exporters, the process must be transparent, regulated and properly standardised. Trade relationships of this scale should not be left entirely at the mercy of unstructured business-to-business arrangements. Government-to-government frameworks are necessary to ensure fairness, accountability and protection for local stakeholders. Indeed, China itself has indicated interest in broader cooperation beyond tariffs, including technical training, customs facilitation and economic partnership arrangements. Nigeria should seize this opening to negotiate aggressively for what truly benefits the country. This should include technology transfer, investments in agro-processing, support for local manufacturing, improved logistics, agricultural mechanisation and industrial capacity development. What Nigeria negotiates now will determine whether this policy becomes a genuine economic breakthrough or merely another chapter in the long history of exporting cheap raw materials while importing expensive finished products. Countries only gain from international trade when they negotiate from a position of preparedness and strategic intent. China has opened a window. Nigeria must not approach it passively.