(a) Describe five factors responsible for the low volumes of trade between Nigeria and the other African countries (b) Suggest five ways of increasing the v...

(a) Factors responsible for low volume of trade between Nigeria and other African countries

1. Similarity of products: most African countries produce and export similar primary raw materials (cocoa, coffee, minerals, oil), so they compete rather than trade with one another.
2. Low level of industrialisation: few countries produce the manufactured goods others need, so demand is met from Europe, America and Asia instead.
3. Poor transport and communication links: road, rail and shipping connections between African states are weak, making inter-country movement of goods slow and costly.
4. Different currencies and trade barriers: varying currencies, high tariffs, import duties and border restrictions discourage cross-border trade.
5. Colonial trade orientation: economies were built to trade with former colonial powers rather than with neighbours, a pattern that still persists.

(b) Ways of increasing the volume of trade

1. Industrialisation and product diversification so countries produce different goods that others need.
2. Improving inter-state transport such as the Trans-African highways, rail links and shipping services.
3. Strengthening economic groupings like ECOWAS and the African Continental Free Trade Area to remove tariffs and barriers.
4. Introducing a common currency or convertible payment systems to ease transactions.
5. Establishing common markets and joint ventures, and improving communication and trade information among member states.