(Ecofin Agency) - In the first quarter of 2024, France emerged as Nigeria's largest trade partner, surpassing Spain and the United States for the first time in recent years. French imports from Nigeria totaled 2,125 billion naira ($1.4 billion), accounting for 11.05% of Nigeria’s total exports. This figure positions France ahead of Spain, which had led for the past five years, and the United States.

If this trend continues, French imports from Nigeria could exceed the $4.7 billion recorded in 2023, according to the International Trade Center. This volume not only solidifies France's position as Nigeria’s top trade partner but also results in a trade surplus of $1.2 billion for France. European countries have traditionally been major clients of Nigeria due to their purchases of oil, predominantly from European companies. Hydrocarbons make up 88% of French imports from Nigeria and are a major component in the trade of other top 10 partners, including neighboring Côte d'Ivoire within the ECOWAS bloc. The depreciation of the naira has inflated these numbers when expressed in local currency.

The stronger euro compared to the dollar has bolstered the position of Eurozone countries during currency conversion. Despite being Nigeria's top client, France does not hold the top supplier position, which is currently occupied by China, a competitor that has gained ground.

Historically, France has been a major buyer of Nigerian raw materials, while countries like the UK have been suppliers. However, China and India have become more competitive, offering lower prices and easier travel options compared to Europe, which has become more restrictive with visa policies.

Today, this dynamic allows Nigeria to gain in naira while the cost of its imports remains stable, aligned with the currencies of China and India, its two largest suppliers. France’s current position highlights its broader economic interests in Africa, countering perceptions that it only focuses on its former colonies. France’s primary African partners are Morocco, Algeria, South Africa, and Tunisia.