$2bn Nigerian/Russian trade at risk as Russian/Ukraine war lingers

Trade between Nigeria and Russia valued at over $2 billion is at risk as the war between Russia and Ukraine intensifies. Nigeria also stands the risk of suffering from significant food shortages and uptick food inflationary pressure, following the war, which broke out last Thursday.

The war started after the President of Russia, Vladimir Putin ordered the invasion of his troops into Ukrainian territories, thereby causing several casualties in the area having camped at Ukrainian borders for weeks.

Russia happens to be a powerhouse in the global economy, being one of the largest exporters of crude products, coupled with its impact in the energy sector, representing one of the biggest producers of natural gas in the world. Russia is also big on commodity exports.

The recent invasion by Russia has led to various sanctions by the western economies, with trade and other agreements put on hold.

For example, the president of France, Emmanuel Macron, and European Commission president, Ursula von der Leyen have both issued sanctions on the Russian economy, aiming at the financial, energy, and transport sectors of the contribution, without exempting its export controls and trade financing bans.

However, Russian president, Putin warned business leaders in the country to work in solidarity with the government, knowing fully well that further restrictions would be placed on the economy.

The recent sanctions are expected to affect Nigeria’s import capacity as Russia also plays an important role in our international trade.

Russia is one of Nigeria’s top sources for its imported items, especially food items.

Nigeria imported goods valued at N813.19 billion (over $2 billion annualised) between January and September 2021, representing 3.7 per cent of Nigeria’s total import in the same period.

Nigeria and Russia, including Ukraine are involved in size able number of trade.

According to the Central Bank of Nigeria (CBN), wheat is the third most widely consumed grain in the country, and Nigeria imported durum wheat worth over N128.1 billion in the 9-month period of 2021, while it recorded a N144.14 billion durum wheat import in the previous year.