MBABANE – Following Eswatini’s recent announcement that Nigeria has become its fifth-largest export market, ANNIES/NIDO President Hon. Christopher Osawunyi Imasuen the president of the Nigerian community in the Kingdom, discussed the opportunities, challenges, and potential for local manufacturing linked to this growing trade relationship.
The initial report from the Eswatini Revenue Service revealed that exports to Nigeria reached E1.5 billion ($85.7 million) in 2024/25, driven by high-value chemical and manufacturing products. Key exports include scented mixtures valued at over E880 million ($48.2 million), industrial binders for foundries worth nearly E520 million ($28.3 million), and oxygen heterocyclic chemical compounds.
Commissioner General Brightwell Nkambule said regional and continental trade agreements, including the African Continental Free Trade Area (AfCFTA), are helping facilitate cross-border trade, while automation through ASYCUDA World has reduced collection costs and simplified documentation for exports to Lagos and Abuja.
Trade is reciprocal, with Nigeria exporting gold and cocoa beans to Eswatini, gold imports alone reaching over E150 million ($8.67 million).
The Nigerian community is closely monitoring this growth and shared insights on trade between the two nations in a follow-up interview.
On the Export Boom
Q: Essential oils and beverage concentrates are currently Eswatini’s biggest exports to Nigeria. From your vantage point, what makes Eswatini’s oils and flavors so competitive in the Nigerian market compared to global giants like France or China?
A: Eswatini’s essential oils and beverage concentrates are competitive in the Nigerian market due to several factors. The country’s strategic location and favorable climate allow for the production of high-quality essential oils, such as citrus and aromatic oils, which are in high demand in Nigeria.
Additionally, Eswatini’s relatively low production costs, compared to global giants like France and China, make its products more competitive in terms of pricing. The country’s focus on sustainable harvesting practices and eco-friendly production methods also appeals to Nigerian consumers who are increasingly seeking natural and organic products.
Nigeria’s growing demand for essential oils, driven by the expanding food and beverage, cosmetics, and pharmaceutical industries, also creates opportunities for Eswatini’s exporters. Eswatini’s ability to meet this demand, combined with its existing trade relationships, Nigeria’s huge population, and the Kingdom’s geographic proximity to Nigeria, positions it as a key player in the region.
Q: Are Nigerian businessmen in Eswatini actively investing in the local agriculture or manufacturing sectors that produce these essential oils (such as eucalyptus or citrus) to meet the demand back home?
A: As the president of Nigerian Nationals in Eswatini, I am yet to do an extensive foot research on if Nigerian businessmen in Eswatini are actively investing in the local agriculture or manufacturing sectors that produce these essential oils (such as eucalyptus or citrus) to meet the demand back home.
On the ERS Digital Shift
Q: The ERS has recently upgraded to ASYCUDA World version 4.4.0. For Nigerian exporters handling perishable or sensitive liquids like essential oils, have you noticed a tangible reduction in the time it takes to clear these goods for export?
A: Eswatini Revenue Service upgrade to ASYCUDA World version 4.4.0 is expected to streamline customs clearance processes, potentially reducing clearance time for all, including Nigerian exporters handling essential oils and other sensitive liquids.
I am also rightly informed that the Nigeria Customs Service has launched a digital One-Stop-Shop (OSS) platform, aiming to cut cargo clearance time to 48 hours, down from 21 days. This reform is part of efforts to modernize border operations and strengthen Nigeria’s trade competitiveness.
On Market Logistics
Q: Exporting liquids and oils across thousands of kilometers involves complex logistics. What are the specific challenges your members face at the borders when moving these specific Eswatini-made products to West Africa?
A: Export challenges are relatively the same all over the continent of Africa. Exporting liquids and oils from Eswatini to West Africa comes with its fair share of challenges. One major issue is the premature removal of tamper-proof seals on shipments at borders, particularly in South Africa or Mozambique depending on the transit point, which can lead to product spoilage and financial losses. For example, customs officials might remove about 10% or less of the stock for phytosanitary testing, only to repeat the process upon arrival in the destination country, resulting in up to 30% or less in losses of the original shipment without compensation.
Q: Is there a need for a more direct “trade corridor” or specific bilateral agreements to protect these high-value exports from Eswatini to Nigeria?
A: A more direct “trade corridor” or specific bilateral agreements could definitely help protect Eswatini’s high-value exports to Nigeria. Given the complexities of international trade, having a dedicated framework can reduce risks and increase efficiency.
Setting up a Nigerian representation or consulate in Eswatini (or vice versa) would:
- Facilitate smoother trade negotiations
- Enhance communication between governments
- Provide support for businesses when navigating regulations
- Help resolve trade disputes more efficiently and swiftly
I would also like to point out the published total export decrease by 10.87% from 2023/2024, which still places Nigeria in 5th place with E1.51 billion. This can be built upon with the help of setting up a Nigerian representation or consulate in Eswatini (or vice versa).
On the Future of the Diaspora
Q: As Nigeria remains a top-five partner, do you see the Nigerian community in Eswatini growing from being “traders” to being “industrialists” who help manufacture these beverages and oils right here in the Kingdom?
A: That’s a great point. With Nigeria being a key partner, it’s possible we could see a shift from just trading to actual manufacturing in Eswatini. The Nigerian community’s entrepreneurial spirit could lead to investments in local production facilities, direct access, creating jobs, and boosting the economy.
Eswatini’s government has been doing great in promoting investment and industrial growth. As a Nigerian resident here in the Kingdom, I say this: it’s a decent spot for manufacturing and investors. If Nigerians bring their expertise and capital, we could see more value-added products staying in the region, rather than just exporting raw materials.
Q: How does the Nigerian community view the ERS’s goal of 100% voluntary compliance? Are there specific education programs the ERS could offer in partnership with your office to help Nigerian entrepreneurs understand local tax laws better?
A: The ERS’s goal of 100% voluntary compliance is a great initiative and very possible with its continued support.
- Tax workshops: Tailored sessions explaining Eswatini’s tax requirements and compliance both offline and online
- Compliance guides
- Online resources: tax calculators on the ERS website
These are great tools provided by Eswatini Revenue Service, but more can be done through partnerships, for example with a Nigerian-Eswatini Chamber of Commerce.
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