INTERNATIONAL TRADE AND POVERTY REDUCTION IN NIGERIA 1986- 2023

In a world increasingly interconnected by trade, millions in developing nations are discovering new avenues to escape poverty. International trade, the exchange of goods and services across borders, is fundamental to the global economy. It facilitates access to resources that countries lack domestically and allows them to capitalize on their comparative advantages. This specialization enhances efficiency and productivity, as countries focus on producing goods and services where they hold a competitive edge (Krugman, Obstfeld, & Melitz, 2018). In developing countries like Nigeria, international trade is particularly significant. Not only does it enhance the availability of goods and services, but it also provides avenues for employment and income generation. In addition, trade can lead to technology transfer and innovation, which are critical for economic development. Moreover, participation in global markets can attract foreign direct investment (FDI), which is essential for infrastructure development and industrialization (Todaro & Smith, 2020). For instance, Nigeria's participation in global oil markets has significantly influenced its economic trajectory, illustrating both the potential benefits and vulnerabilities of trade. International trade has remained a cornerstone of Nigeria's economic development strategy. Over the years, Nigeria's trade policies have evolved, reflecting changes in global economic trends and domestic priorities. Notably, the country's international trade has been characterized by a heavy reliance on oil exports, while non-oil exports, such as agricultural products and manufactured goods, have remained relatively low (Lawal & Ani, 2018). This overreliance on oil has led to a lack of diversification, exposing the economy to vulnerabilities associated with volatile oil markets. For instance, the decline in global oil prices in 2014 led to a severe economic recession in Nigeria, highlighting the need for economic diversification. Furthermore, Nigeria's main trading partners include the European Union, the United States, China, and India. Additionally, it has participated in regional trade agreements like the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA) (Abdulai, 2020). These agreements aim to enhance trade within the African continent and reduce dependence on external markets. By fostering regional integration, Nigeria has the opportunity to strengthen its economic ties with neighboring countries and build more resilient trade networks.