Nigeria among world’s poorest in trade

Nigeria’s position in the global economic space has once again come under the spotlight as experts warn that the country continues to rank among the poorest in trade and economic freedom. This warning came at two major roundtable discussions organised in Abuja by Ominira Initiative, a free market think tank focused on promoting reforms that can unlock the country’s economic potential. The events, which held on September 23 and 25, 2025, brought together economists, legal scholars, government officials, civil society groups and business leaders who critically examined Nigeria’s weakest economic institutions. Their goal was to identify the barriers that keep the nation trapped in cycles of poverty and to recommend reforms that could change its course.

The Ominira Initiative based its assessment on the Fraser Institute’s global benchmarking framework which measures economic freedom across countries. According to the 2024 Economic Freedom of the World Index, Nigeria performed poorly in two very important areas. The country ranked 137th globally in legal systems and property rights and an even worse 159th in freedom to trade internationally. These figures highlight the institutional bottlenecks that have long strangled Nigeria’s progress, leaving businesses and ordinary citizens frustrated.

During the first session which focused on legal and property rights, participants examined how Nigeria’s judicial framework and land policies continue to hurt development. Professor Akintunde Otubu, a property law expert from the University of Lagos, criticised the centralised land regime created by the Land Use Act. According to him, this system has locked away billions in potential wealth because land ownership is often poorly documented and difficult to secure legally. He also highlighted the issue of weak contract enforcement which discourages investors from committing to projects in Nigeria. The Cybercrimes Act was also singled out for the way it has been applied arbitrarily, creating a chilling effect on press freedom and further eroding trust in the country’s legal system.

Participants at the meeting did not just point out these flaws but also stressed the heavy cost Nigerians are paying for them. They noted that weak institutions have stifled investments, discouraged innovation, and deepened poverty. Many Nigerians cannot access the capital tied up in land they occupy because they lack proper titles. Businesses suffer because contracts are often broken without consequence, while investors fear that their rights may not be protected in court. The roundtable concluded with clear reform demands which included ensuring true judicial independence, simplifying land administration to make ownership easier, and putting stronger safeguards in place for human rights.

The second roundtable shifted attention to Nigeria’s trade environment which has long been known for its inefficiencies and outdated policies. Professor Olawale Ogunkola, a trade economist, explained how Nigeria’s legacy of protectionist policies continues to weigh down the economy. He pointed to laws like the Customs and Excise Management Act and the Import Prohibition List which create barriers that push up consumer prices and weaken local competitiveness. He stressed that while other African countries are taking advantage of the African Continental Free Trade Area to expand their markets, Nigeria risks being left behind because of its restrictive trade environment.

High tariffs, customs delays and opaque rules are common features of Nigeria’s trade system. These issues make life difficult for local manufacturers who are unable to compete with cheaper imported goods. Exporters also suffer because of delays at the borders and excessive charges that eat into their profits. In the end, these policies punish businesses, inflate prices for consumers, and make Nigeria less attractive to global investors.

At the event, the Director of Research at Ominira Initiative, Bayonle Fesobi, emphasised that analysis alone will not solve these problems. According to him, the group is committed to engaging directly with decision-makers and practitioners in order to co-create practical reforms that can be implemented. He said the ultimate goal is to improve the daily lives of millions of Nigerians who bear the brunt of weak economic institutions.

For Ominira Initiative, the message is clear. Nigeria’s decline can be reversed if the country is willing to open up its economy to trade, strengthen its legal system, and remove systemic barriers that discourage investment. These are not just abstract policy issues but real challenges that affect how easily people can start businesses, buy land, enforce contracts, or even afford basic goods at the market.

The discussions held in Abuja will form part of the Economic Freedom Audit of Nigeria Report which is scheduled to be released at the Economic Freedom Summit in Lagos in February 2026. That report is expected to provide a more comprehensive picture of Nigeria’s current standing and concrete recommendations for reform.

The experts who participated in these roundtables were united in their concern that Nigeria is not living up to its potential. The country is richly endowed with natural and human resources but poor policies and weak institutions continue to limit growth. With millions unemployed, inflation eating into household incomes, and businesses struggling to survive, the urgency for change cannot be overstated.

For ordinary Nigerians, the outcomes of these discussions may seem far removed from their daily struggles, but they are not. A legal system that protects property rights means people can confidently invest in land and housing. A trade environment that encourages competition means cheaper goods, better jobs, and more opportunities for entrepreneurs. Judicial independence means citizens can trust that their rights will be defended. These are the very things that make a difference in people’s lives, and without them, the promise of prosperity will remain out of reach.

The roundtables in Abuja may have ended, but the questions raised will continue to echo. Will Nigeria find the political will to implement reforms, or will it remain trapped in cycles of poor rankings and economic stagnation? The answer lies not just with policymakers but also with the collective demand of citizens who deserve a better future.