This week we look at Nigeria's diverse domestic trade.
Nigeria is a vast and diverse country with a wide range of natural resources and agricultural products. This diversity leads to various trade relationships between different regions, as some areas are better suited for certain types of production than others. For example, the northern regions might specialize in agricultural production, while the southern regions may have a more developed industrial base.
Nigeria has a total agricultural area of 70.8 million hectares, of which 34 million hectares are arable land, 6.5 million hectares are used for permanent crops, and 30.3 million hectares are meadows and pastures. The country produces a variety of crops, including cocoa, palm oil, rubber, cassava, and grains. These products are traded within the country to meet both food and industrial needs.
Nigeria has a growing manufacturing sector that produces goods such as textiles, cement, consumer electronics, and processed foods. These products are traded domestically to cater to the needs of the population and support economic growth.
Retail and wholesale businesses are widespread across Nigeria's cities and towns. They serve as intermediaries between producers and consumers, ensuring that products reach the end-users efficiently. Traditional markets, local shops, and modern retail outlets all contribute to domestic trade activities.
Effective transportation infrastructure is essential for facilitating domestic trade. Nigeria relies on road, rail, and maritime transport to move goods across its vast territory. Distribution networks ensure that products reach various regions in a timely manner.
Despite its potential, Nigeria's domestic trade faces challenges such as inadequate infrastructure, inconsistent power supply, bureaucratic hurdles, and security concerns. These challenges can affect the efficiency and cost-effectiveness of trade operations.
In recent years, there has been an increasing emphasis on leveraging technology for domestic trade. E-commerce platforms and digital payment systems have gained popularity, especially in urban areas, making it easier for businesses and consumers to engage in trade activities online.
Two of the main domestic trade aspects of Nigeria that we would like to focus in is Nollywood and the fact that Nigeria was the worlds largest importer of Equine and Bovine hides ins the world in 2021.
Nollywood:
Nollywood is the colloquial term used to refer to the Nigerian film industry, which is one of the largest and most prolific film industries in the world. The term "Nollywood" is a portmanteau of "Nigeria" and "Hollywood," and it reflects the industry's influence and impact on global cinema. Nollywood is known for producing a large number of films that cater to both local and international audiences.
Nollywood is renowned for its high production volume, releasing over 2500 film per year . These films span various genres, including drama, comedy, romance, action, and thriller, among others. The industry's rapid production pace is enabled by relatively low budgets and quick turnaround times.
Many Nollywood films are produced on relatively modest budgets compared to Hollywood standards. This has led to a creative and resourceful approach to filmmaking, with filmmakers finding innovative ways to tell compelling stories despite budgetary constraints.
Nollywood often focuses on storytelling that resonates with local audiences, addressing cultural, social, and economic issues faced by Nigerians. It reflects the country's diverse cultures, languages, and traditions, making it a powerful tool for cultural expression and representation.
Nollywood films are widely distributed and easily accessible across Nigeria and other parts of Africa. They are typically released directly to video or digital platforms, making them available to a wide range of viewers, even in remote areas.
Nollywood has played a significant role in shaping the trajectory of African cinema. It has inspired filmmakers in other African countries to develop their own vibrant film industries, contributing to the overall growth of African cinema.
Nollywood has produced a plethora of talented actors, directors, and producers who have gained recognition both locally and internationally. Nollywood stars are often celebrated across Africa and beyond, contributing to the industry's global reach.
Over the years, Nollywood has gained recognition on the global stage. It has been featured at international film festivals, and some Nollywood films have garnered awards and critical acclaim. Nollywood's influence extends beyond Africa, as it has garnered a substantial following in African diaspora communities and beyond.
Nollywood has embraced digital technology and online platforms, contributing to its accessibility and reach. Streaming services and online distribution have expanded the global audience for Nollywood films.
Equine and Bovine Hides:
Nigeria stood out as the leading importer of Equine and Bovine Hides, with a total value of $56.8 million in 2021. Following closely were China ($26.1 million), Germany ($19.7 million), Japan ($15.3 million), and Spain ($13.5 million). On the export side, in the same year, Italy took the lead with exports worth $49.4 million, trailed by Austria ($21.9 million), France ($17.7 million), the United States ($14.8 million), and China ($14.6 million).
Bovine and equine raw hides and skins play a pivotal role in the production of leather goods. Raw hides are utilized in crafting leather items like shoes, gloves, and belts, while raw skins are transformed into articles such as coats, saddles, harnesses, and car seats. Considering Nigeria's modest annual automotive production of 14,000 vehicles (in comparison to a burgeoning demand of 720,000), it's reasonable to assume that a significant portion of the acquired leather was allocated to producing footwear for the nation's vast population exceeding 224 million.
Fast-forward to 2023, the revenue generated from Nigeria's footwear market has ascended to an impressive US$2 billion. One of the keys to this markets surge can be attributed to a heightened interest in locally crafted shoes, showcasing traditional artisanal skills. The demand for these handcrafted shoes is on the rise, driven by a growing admiration for the intricate craftsmanship that defines them.
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