Trade and development for natural resources in Nigeria and prospects of cooperation under AFCFTA

Abstract

Intrinsically, the natural resources of a country are the primary source of its economic development. Leveraging on comparative advantage, a country can extend the frontiers of its economic wealth through the dispensation of its natural resources in the appropriate channels. It will be a swim within a deep puddle to over emphasize the natural endowments of Nigeria and the impact this ought to contribute to its economic development. However, maintaining a spot on the list of developing nations, Nigeria’s economic development remains a form of arbitrariness when compared to the magnitude of its economic wealth. Using a desk-based methodology, this paper examines the interconnection between trade in natural resources and the economic development in Nigeria, and how the status quo may be advanced through the promises of the African Continental Free Trade Area Agreement (AFCFTA). The paper finds that there are benefits which may be derived through AFCFTA, however, the promise of economic development through trading in natural resources and building a market through AFCFTA is potentially a mirage when adequate internal measures and administrative controls are not established within the country. The paper is concluded with recommendations proffered.