This document discusses drivers of global value chain (GVC) participation including factor endowments, market size, geography, and institutional quality. It provides context on Nigeria's lower trade as a percentage of GDP compared to other Sub-Saharan countries. Key factors determining Nigeria's trade movement are trade liberalization elsewhere in Africa, infrastructure challenges, and currency fluctuations. The document recommends that Nigeria improve power supply through sector reforms, implement policies promoting GVCs like the African Continental Free Trade Area, and reform ports to drive greater GVC participation.
7. GVC’S From a Nigeria Context
Nigeria's trade as percent of GDP
has been on average lower than the
Sub-Saharan average over the period
2000-2020
Trade as a Percentage of GDP
8. GVC’S From a Nigeria Context
Factors Determining Trade Movement
Trade
Liberalization in
other Sub –
Saharan African
Countries
Infrastructure
Challenges
Currency
Fluctuations
9. How to drive GVC participation in Nigeria.
• The issue of erratic power supply has always been
a stumbling block to Nigeria’s Industrialization.
• For Nigeria to actively participate in GVC’s, power
supply is very important as factories otherwise
wont function
• The Government of Nigeria has recognized this
and the power sector is undergoing some reforms
• The Government recently signed an Agreement
with Siemens AG for the transformation of the
power sector.
Power
10. How to drive GVC participation in Nigeria.
• The Federal Government of Nigeria must implement
policies that will promote GVC’s
• Geographical location is a crucial factor in the success
of GVC’s as such, to succeed, Nigeria must partner
with regional neighbors
• The AfCTA is one of such policy’s that can boost
GVC’s in Nigeria.
• After a protracted period, Nigeria is finally a signatory
to the AfCTA which will reduce unemployment,
increase FDI’s, increase GDP and open new markets.
Policy’s- AfCTA
11. How to drive GVC participation in Nigeria.
• Efficient National ports are important trade facilitators
and crucial elements in the process of economic
development.
• Export of transshipment services to neighboring
countries would enable ports to grow and achieve
significant economies of scale that would finally benefit
the country’s external trade itself.
• Multiple agencies examination and scanning procedures
delays; and intervention of cargoes in transit between the
ports and destination and a host of others has adverse
effects on external trade
• The Government must come up with port reforms that
will ameliorate the problems.
Policy’s- Port Reforms
