A recent study conducted by the African Export-Import Bank (Afreximbank) has underscored the critical role of intra-African trade in fostering economic growth across the continent.

Published in Afreximbank’s Policy Research Working Papers and released in March 2024, the study analyzed data from 54 African nations spanning the period from 2004 to 2022, employing a statistical method known as system generalized method.

The findings reveal that intra-African trade not only stimulates economic growth but also enhances the flow of Foreign Direct Investment (FDI) into African economies.

According to the study, there is a direct positive correlation between FDI inflows and intra-African trade, suggesting that increased trade among African countries contributes significantly to overall economic expansion.

Dr. Benedict Oramah, President of Afreximbank, emphasized the importance of integrating intra-African trade into broader economic strategies.

“The study reaffirms that enhancing intra-African trade is a pivotal strategy for achieving sustainable economic development in Africa,” Dr. Oramah stated. “It is clear that as African countries trade more among themselves, they create opportunities for increased investment and economic diversification.”

Africa has historically lagged behind other regions in intra-continental trade and exports. For instance, data from the UN Trade and Development (UNCTAD) shows that intra-African exports accounted for only 16.6% of total exports in 2017, significantly lower than Europe (68.1%), Asia (59.4%), and America (55%).

The low level of intra-African trade, around 2% during the period from 2015 to 2017, highlights the potential for growth through initiatives like the African Continental Free Trade Area (AfCFTA).

The AfCFTA, which aims to create a single market for goods and services across 54 African countries, has been touted as a game-changer for intra-African trade.

It seeks to eliminate tariffs on 90% of goods, foster a unified customs union, and facilitate the free movement of people and investments across the continent.

Projections suggest that by 2035, Africa’s exports to the rest of the world could increase by 32%, with intra-African exports potentially growing by 109%, driven primarily by manufactured goods.

The Afreximbank study further argues that removing barriers to FDI and trade within Africa will accelerate economic integration and enhance the continent’s global competitiveness.

“Countries that prioritize financial sector development and industrial employment are better positioned to harness the benefits of intra-African trade,” the study notes.

Nigeria’s arts and entertainment sector contributed N728.80 billion to the national economy in the first quarter (Q1) of 2024.

This represents an increase from the N576.67 billion recorded in Q1 of 2023 and the N382.37 billion reported in Q2 of 2023, according to data released by the National Bureau of Statistics (NBS).

The robust growth throws more light on the expansion of Nigeria’s movie, music, arts, and entertainment industries, which have collectively grown by 152.79% year-on-year over the past decade.

From a GDP contribution of N288.31 billion in the first quarter of 2014, these sectors have burgeoned into a major economic force, reaching N728.80 billion as of Q1 2024.

NBS aggregates figures from revenues generated by movie and sound recording productions, including earnings from TV rights, royalties, and fees.

This comprehensive data collection highlights the sector’s burgeoning impact on Nigeria’s broader services sector, which has become a pivotal contributor to the country’s overall GDP.

“The top five sectors driving Nigeria’s growth include arts, entertainment, and recreation, along with information and communication, construction, accommodation and food services, and water supply, sewerage, waste management, and remediation,” said Afolabi Olowoookere, Managing Director and Chief Economist at Analysts’ Data Services and Resources.

“The arts and entertainment sector, in particular, has been a cornerstone of the nation’s economic development during this period.”

The Nigerian entertainment scene has benefitted from a surge in new content driven by increased investments, a burgeoning cinema culture, and the rise of streaming services.

The global popularity of music genres like Afrobeats has also significantly contributed to the sector’s growth.

Google’s Communication and Public Relations Manager in West Africa, Taiwo Kola-Ogunlade, emphasized the global appeal of Nigerian content. “Africa’s biggest export is content,” Kola-Ogunlade stated. “We just need to ensure that our creatives and storytellers are telling amazing stories.”

The sector’s success has been further bolstered by substantial investments from major players.

Netflix, for instance, disclosed that it had invested over $23 million in the Nigerian film industry over the past seven years, supporting 5,140 jobs and over 250 local licensed titles.

This investment contributed $39 million to Nigeria’s GDP, $34 million to household income, and $2.6 million to tax revenue.

Cinemas in Nigeria have also experienced significant growth, generating N18.92 billion in revenue over the past three years.

The box office hits between 2021 and 2023, such as ‘A Tribe of Judah’ and ‘King of Boys,’ have grossed over N1 billion, showcasing the industry’s financial viability.

“The sky is the limit for Nollywood as long as investors continue to support our stories,” said Kelvin Obasuyi, Managing Partner at 56 Capital and an Oxford alumnus.

Despite the economic challenges facing Nigeria, the outlook for the entertainment sector remains positive.

PricewaterhouseCoopers (PwC) identified Nigeria’s media and entertainment industry as one of the fastest-growing creative industries globally in its Global Entertainment and Media Outlook for 2022-2026.

PwC projected an annual consumer growth rate of 8.8% for the sector and highlighted its potential to significantly increase export earnings, which it estimates will soon reach $1 billion.

“The Afrobeat genre of Nigerian music has created a global fear of missing out (FOMO),” said Bemigho Awala, a documentary filmmaker. “Even as our artists sell out venues abroad, Nollywood films are achieving impressive numbers locally and on streaming platforms.”

With continued investment and support, the Nigerian arts and entertainment industry is poised to maintain its upward trajectory, further solidifying its position as a major economic driver in the nation.

A fire outbreak occurred on Wednesday at the Dangote Petroleum Refinery in the Lekki Free Zone, Lagos.

The incident, which took place at the refinery’s effluent treatment plant (ETP), was quickly contained without causing any injuries or significant damage.

In an official statement sent to the media, Anthony Chiejina, Chief Corporate Communications Officer of Dangote Group, assured the public that the situation is under control and there is no cause for alarm.

“We have swiftly contained a minor fire incident at our effluent treatment plant (ETP) today, Wednesday, 26th of June,” the statement read.

“There is no cause for alarm as the refinery is operating normally, and there are no recorded injuries or bodily harm to any of our staff on duty.”

The rapid response by the refinery’s emergency team ensured that the fire did not spread, and operations at the refinery were not disrupted.

The Dangote Petroleum Refinery, a major project of the Dangote Group, is crucial for Nigeria’s oil industry, aiming to reduce the country’s dependence on imported fuel and enhance its refining capacity.

The swift containment of the fire reassures stakeholders and the public of the refinery’s commitment to safety and operational excellence.