South Africa positioned Nigeria as its primary source of imports amid escalating geopolitical tensions in the Middle East. Director, Africa Bilateral Economic Relations, Department of Trade, Industry and Competition, South Africa, Mr. Calvin Phume, disclosed this at South Africa Energy Week 2026 in Lagos, with the theme, “Repositioning and Promoting Energy Investments Between South Africa and Nigeria.”
Phume said the shift was already underway for refined products, driven by the Dangote refinery.
He said, “Due to the US Israel-Iran war, there are discussions that most of our oil will come from here (Nigeria). But the discussions are at the highest level. We get a huge amount of refined petroleum oil. So, it’s because of the Dangote Refinery. It has been helping us a lot in South Africa and the continent as a whole.”
Phume said bilateral trade between Africa’s two largest economies had surged since Nigeria gazetted its provisional schedule of tariff concessions under the African Continental Free Trade Area (AfCFTA) on April 15, 2025.
He stated, “You will recall that I did indicate Nigeria gazetted its provisional schedule of terminal concession of the AfCFTA on 15th April, 2025, last year. So, we were able to add Nigeria into the list of the countries that will benefit under the AfCFTA in August last year.
“So, since then, up until now, we have seen that there’s a huge increase of trade between South Africa and Nigeria, but it’s heavily skewed to South Africa now.”
He said between 2023 and 2025, South Africa’s exports to Nigeria rose 24 per cent, from $355 million to $442 million. Last year alone, Phume said exports jumped 16 per cent, from $380 million in 2024, “which can be attributed to a rise in exports of goods, vehicles and fresh apples.”
According to him, in 2025, South Africa’s top exports to Nigeria included goods, vehicles, fresh apples, polypropylene, mixtures of odoriferous substances, and food preparations.
Phume said, “Iron and steel, because of our industrialised economy, we are able to manufacture the pipes that are required for the oil in Nigeria. So, it’s number three. And we also do some miscellaneous chemical products that are very important in 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 could be attributed to the drop in Nigeria’s overall crude oil exports in 2025,” he stated.
Despite the decline, he said crude remained dominant, explaining that in 2025, South Africa’s top imported products from Nigeria were petroleum crude oil, urea, refined petroleum oil, natural rubber, aluminium containers, and aeroplanes.
He pointed out that AfCFTA had reshaped the balance of trade between the two nations, thwarting the historical advantage Nigeria used to have due to crude oil shipments.
Phume stated, “Before, it was very skewed to Nigeria because of the crude oil. But since we have started trading under the AfCFTA, number one is oil and seeds, and the oligosaccharides, fruits, malaise, grains, seeds, fruit, industrial and medicinal plants, straw and fodder.”
He added, “While Nigeria enjoys a trade surplus in general, its trade with South Africa under the AfCFTA preference is heavily skewed in South Africa’s favour.
“Both countries would need to increase efforts to encourage and support valued-added exports under the AfCFTA and maximise the new market.”
In her keynote address, Deputy Minister of International Relations and Cooperation, South Africa, Ms. Thandi Moraka, emphasised the importance of strategic collaboration between Nigeria and South Africa to promote investment in energy infrastructure to catalyse production and guarantee energy security for their citizens.
Moraka pointed out that a noteworthy example of Africa’s potential lay in the energy and industrial development showcased in the Dangote Refinery. According to her, as one of the largest oil refineries in the world, Dangote Refinery is a pivotal player in the Nigerian oil and gas industry.
She said the refinery was not only a project that benefited Nigeria by reducing dependence on imported petroleum products but it also continued to position Africa as a significant role player in the global energy market.
Moraka stated, “In the context of our current geopolitical tension, the ever-changing energy insecurity that we continue to find ourselves in, such as the ongoing war in the Middle East and its adverse impact on global oil and gas security, the Dangote refinery offers a strategic advantage for the continent of Africa and Nigeria as a country.
“It, therefore, enhances Africa’s energy security and also provides a buffer against global supply disruptions and helps us to create opportunities for regional integration at an economic level.
“We need to start working towards scaling up these kinds of initiatives within the African continent.”
Festus Akanbi, Emmanuel Addeh and Peter Uzoho
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