China Takes Nearly 40% of Nigeria’s Import Market as Trade Deficit Hits N9.92tn

By Opeyemi Adelakun

Nigeria’s trade relationship with China has widened considerably, with Chinese goods accounting for nearly 40 per cent of the country’s total imports in the first half of 2026.

Fresh data from the National Bureau of Statistics showed that Nigeria imported N11.01tn worth of goods from China between January and June, compared with total imports of N28.04tn.

The development means that nearly N4 out of every N10 spent by Nigeria on imported goods during the period went to China.

China’s position in Nigeria’s import market strengthened despite a contraction in the country’s overall import bill.

Nigeria’s total imports dropped from N33.14tn in the first half of 2025 to N28.04tn in the first half of 2026, a decline of 15.37 per cent.

Over the same period, imports from China rose from N9.62tn to N11.01tn, representing a 14.49 per cent increase.

As a result, China’s share of Nigeria’s import market rose from 29.03 per cent to 39.27 per cent.

The first-quarter figures showed the extent of China’s dominance.

Nigeria imported N13.62tn worth of goods in Q1, with China accounting for N5.10tn, or 37.42 per cent.

The United States supplied N2.81tn, while India accounted for N992.87bn.

The gap widened in the second quarter as China supplied N5.92tn of Nigeria’s N14.42tn imports, giving it a 41.02 per cent share.

The United States supplied N1.01tn, while India contributed N924.46bn.

The Netherlands and Germany supplied N409.81bn and N395.87bn respectively.

The second-quarter figures meant Nigeria imported almost six times more goods from China than from the United States.

Chinese imports also rose by N955.58bn, or 19.26 per cent, compared with the N4.96tn recorded in Q2 2025.

The growing dependence on Chinese supplies cuts across several areas of Nigeria’s economy.

Major imports from China included telecommunications equipment, agricultural machinery, herbicides, oil and gas pipeline materials, renewable-energy equipment and industrial machinery.

In Q1, machines used in the reception, conversion and transmission of voice, images or data accounted for N254.41bn.

Seeders, planters and transplanters were valued at N137.94bn, while parts of telecommunications equipment stood at N104.53bn.

Herbicides and related agricultural products accounted for N103.83bn, while line pipes for oil and gas pipelines were valued at N81.15bn.

In Q2, photovoltaic cells assembled into modules or panels accounted for N184.02bn.

Other major Chinese imports included telecommunications equipment worth N158.73bn, machinery with a 360-degree revolving superstructure valued at N152.56bn, herbicides worth N128.88bn and machinery for cleaning, sorting or grading seeds and grains worth N126.45bn.

China’s dominance was not limited to Nigeria’s overall import market.

Asian countries supplied N16.12tn worth of goods to Nigeria during the first half of 2026, with China accounting for N11.01tn, or 68.34 per cent.

The trade figures also exposed a substantial imbalance between Nigeria’s imports and exports with China.

Nigeria exported N582.20bn worth of goods to China in Q1 and N506.57bn in Q2, totalling N1.09tn.

With imports from China standing at N11.01tn, Nigeria recorded an estimated N9.92tn merchandise trade deficit with the country.

This translates to about N10.11 worth of Chinese goods imported for every N1 worth of Nigerian goods exported to China.

Nigeria’s exports to China accounted for just 2.26 per cent of the country’s N48.19tn total exports during the period.

The expansion of Chinese imports has coincided with heightened concern over counterfeit and substandard products in Nigeria.

NAFDAC’s Director of Investigation and Enforcement, Martins Iluyomade, said the agency had uncovered what it described as a new counterfeit operation model involving some Chinese-linked operators.

“Before, to fake a product, you needed to go to China to bring it. Now, you don’t need to go. They are here (in Nigeria) with us. They are the ones who will identify the product that will be moving, send it to their country (China), and then come here and distribute it to our people (Nigerians) without having to travel.

According to Iluyomade, some counterfeiters identify products that are popular among Nigerian consumers, arrange for replicas to be produced and subsequently distribute them through logistics networks.

He said NAFDAC had discovered cases where Chinese-linked counterfeiters allegedly owned logistics companies used to distribute the products.

The agency has consequently moved against logistics firms allegedly linked to such networks.

However, the allegations do not mean that Chinese imports generally are counterfeit or substandard. Rather, they highlight the regulatory challenge created by the sheer scale of the bilateral supply chain.

NAFDAC said it secured 64 convictions for counterfeiting offences between June 2025 and June 2026.

The agency also disclosed that more than N1.54tn worth of fake and substandard regulated products had been seized or destroyed nationwide since 2023.

Local manufacturers have meanwhile warned that counterfeit goods are putting legitimate businesses under increasing pressure.

Peter Popoola, Vice Chairman of the Lagos Chapter of the National Association of Small-Scale Industrialists, said counterfeiting was hurting sales, profits and brand reputation.

“Counterfeiting reduces our sales and profits. It also damages the reputation of legitimate brands because the consumer may not know the difference until he uses the product and it turns out bad,” he said.

Popoola said the financial burden of protecting products and pursuing counterfeiters through the courts was particularly difficult for small businesses.

“The cost of protecting our products and taking possible legal action is high. SMEs’ finances are generally limited; we cannot afford it. It slows down our growth and leads to job losses,” he stated.

He called for grants, low-interest credit facilities and consumer financing to support genuine manufacturers and reduce the attraction of cheaper counterfeit goods.

Spectra Industries Limited CEO, Duro Kuteyi, attributed part of the problem to declining household purchasing power.

“There is not much money in the pocket, so everybody is looking for cheap items, and that is where counterfeiters gain access to the market,” Kuteyi said.

Beyond the China trade imbalance, NBS data showed that manufactured goods accounted for N18tn, or 64.16 per cent, of Nigeria’s total imports in the first half of 2026.

Manufactured imports rose from N8.48tn in Q1 to N9.51tn in Q2, indicating the continued importance of imported manufactured products to the Nigerian economy.

The figures underline the growing importance of China to Nigeria’s supply chains while also highlighting the need for stronger oversight, greater domestic production and measures to improve the competitiveness of local manufacturers.


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