South Africa positioned Nigeria as its main supply of imports amid escalating geopolitical tensions within the Center East. Director, Africa Bilateral {Economic} Relations, Division of Commerce, Trade and Competitors, South Africa, Mr. Calvin Phume, disclosed this at South Africa Power Week 2026 in Lagos, with the theme, “Repositioning and Selling Power Investments Between South Africa and Nigeria.”
Phume stated the shift was already underway for refined merchandise, pushed by the Dangote refinery.
He stated, “As a result of US Israel-Iran battle, there are discussions that almost all of our oil will come from right here (Nigeria). However the discussions are on the highest stage. We get an enormous quantity of refined petroleum oil. So, it’s due to the Dangote Refinery. It has been serving to us quite a bit in South Africa and the continent as a complete.”
Phume stated bilateral commerce between Africa’s two largest economies had surged since Nigeria gazetted its provisional schedule of tariff concessions below the African Continental Free Commerce Space (AfCFTA) on April 15, 2025.
He acknowledged, “You’ll recall that I did point out Nigeria gazetted its provisional schedule of terminal concession of the AfCFTA on fifteenth April, 2025, final 12 months. So, we have been ready so as to add Nigeria into the checklist of the international locations that can profit below the AfCFTA in August final 12 months.
“So, since then, up till now, we now have seen that there’s an enormous enhance of commerce between South Africa and Nigeria, nevertheless it’s closely skewed to South Africa now.”
He stated between 2023 and 2025, South Africa’s exports to Nigeria rose 24 per cent, from $355 million to $442 million. Final 12 months alone, Phume stated exports jumped 16 per cent, from $380 million in 2024, “which could be attributed to an increase in exports of products, autos and contemporary apples.”
In keeping with him, in 2025, South Africa’s prime exports to Nigeria included items, autos, contemporary apples, polypropylene, mixtures of odoriferous substances, and meals preparations.
Phume stated, “Iron and metal, due to our industrialised financial system, we’re capable of manufacture the pipes which are required for the oil in Nigeria. So, it’s quantity three. And we additionally do some miscellaneous chemical merchandise which are crucial within the Nigerian market.”
Conversely, South Africa’s imports from Nigeria fell 33 per cent, from $2.3 billion to $1.5 billion between 2023 and 2025. “This might be attributed to the drop in Nigeria’s general crude oil exports in 2025,” he acknowledged.
Regardless of the decline, he stated crude remained dominant, explaining that in 2025, South Africa’s prime imported merchandise from Nigeria have been petroleum crude oil, urea, refined petroleum oil, pure rubber, aluminium containers, and aeroplanes.
He identified that AfCFTA had reshaped the steadiness of commerce between the 2 nations, thwarting the historic benefit Nigeria used to have on account of crude oil shipments.
Phume acknowledged, “Earlier than, it was very skewed to Nigeria due to the crude oil. However since we now have began buying and selling below the AfCFTA, primary is oil and seeds, and the oligosaccharides, fruits, malaise, grains, seeds, fruit, industrial and medicinal crops, straw and fodder.”
He added, “Whereas Nigeria enjoys a commerce surplus generally, its commerce with South Africa below the AfCFTA desire is closely skewed in South Africa’s favour.
“Each international locations would want to extend efforts to encourage and assist valued-added exports below the AfCFTA and maximise the brand new market.”
In her keynote handle, Deputy Minister of Worldwide Relations and Cooperation, South Africa, Ms. Thandi Moraka, emphasised the significance of strategic collaboration between Nigeria and South Africa to advertise funding in power infrastructure to catalyse production and assure power safety for his or her residents.
Moraka identified {that a} noteworthy instance of Africa’s potential lay within the power and industrial growth showcased within the Dangote Refinery. In keeping with her, as one of many largest oil refineries on the planet, Dangote Refinery is a pivotal participant within the Nigerian oil and gasoline trade.
She stated the refinery was not solely a undertaking that benefited Nigeria by lowering dependence on imported petroleum merchandise nevertheless it additionally continued to place Africa as a major position participant within the world power market.
Moraka acknowledged, “Within the context of our present geopolitical pressure, the ever-changing power insecurity that we proceed to search out ourselves in, resembling the continuing battle within the Center East and its hostile impression on world oil and gasoline safety, the Dangote refinery affords a strategic benefit for the continent of Africa and Nigeria as a rustic.
“It, subsequently, enhances Africa’s power safety and in addition offers a buffer towards world provide disruptions and helps us to create alternatives for regional integration at an {economic} stage.
“We have to begin working in direction of scaling up these sorts of initiatives throughout the African continent.”
Festus Akanbi, Emmanuel Addeh and Peter Uzoho
Times Nigeria