Theory question 105
Transport, Trade and Tourism(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 volume of trade between Nigeria and the other African countries
Show the model answer
(a) Similar products (all export primary goods); poor transport links between countries; different currencies and lack of convertibility; language barriers; ties to former colonial powers; trade restrictions and border controls; preference for goods from industrialised countries; small markets.
(b) Build road and rail links across borders (Trans-African highways); remove tariffs and border restrictions (ECOWAS free trade); common or convertible currency; diversify and industrialise to produce different goods; trade fairs; encourage buying African-made goods; strengthen regional bodies such as ECOWAS/AU.
Each suggestion in (b) should answer a problem in (a).