Nigeria’s Export Supply versus Brazil’s Import Demand: 2000-2016

Abstract

This study examined the comparative advantage of twenty major product categories exported between Nigeria and Brazil using Revealed Comparative Advantage (RCA) index, and measures the extent to which Nigeria's export supply match with Brazil's import demand using trade complementarity index (TCI) over the period 2000-2016. The result from the analysis shows that Nigeria can only competitively export mineral fuels to Brazil, while Brazil can export competitively to Nigeria products like tobacco, aluminum and articles thereof, miscellaneous edible preparations, cereals, salt, Sulphur, earth and stone, iron and steel, ores slag and ash, sugar and sugar confectionary. Neither do Nigeria nor Brazil has comparative advantage in products like plastics, paper, nuclear reactors and boilers, soap/washing preparations, fish crustacean, vehicles, railway, dairy products, articles of iron or steel, coffer, furniture, bedding, mattress, cushion etc. which implied that there is little scope for increasing their trade in these products. Evidence from the trade complementarity index reveals the existence of partial match between Nigeria’s exports supply and the Brazil’s imports demand, and that Brazil’s exports to Nigeria are more capable of meeting Nigeria’s imports demand toward Brazilian goods than that of Nigeria. The trends in Nigeria’s trade complementarity index has been increasing over the study period. This an indication of compatibility of Nigeria’s exports supply with Brazil’s imports demand. While the trends in Brazil trade complementarity index has been fluctuating and has declined over period implying that Brazil’s exports is becoming less compatible with Nigeria’s imports. The study further shows that Mineral fuels has remained Nigeria’s major export to Brazil and recommends that Nigerian economy should be geared toward resolving problems of low productivity in various sectors. The study also called for the need to embark on research toward identifying realistic export opportunities for Nigeria in Brazilian markets in order to boost their bilateral relations