Cameroon and Nigeria are neighbouring countries that share a long land and sea border of around 1,500 kilometres, and enjoy cordial trade relations. The first cooperation and trade agreement between the two countries was signed in February 1963.
By way of illustration: Nigeria’s Economic and Trade Days are held regularly in Cameroon and vice-versa; a Business Forum between the two countries is in the pipeline; the DANGOTE cement plant produces cement in Douala; a second DANGOTE plant is to be built in Yaoundé; trade between the two countries is diversified, although for the moment it is conducted more informally and on cross-border markets. Cameroon imports over 400 billion CFA francs worth of spare parts, electronic and household appliances, textiles and other goods every year. This makes Nigeria Cameroon’s leading economic and trading partner in Central and West Africa, accounting for almost 43% of imports. The West African giant mainly imports food products from Cameroon, which is one of its biggest suppliers. However, with just over 100 billion CFA francs in exports, Cameroon has a trade deficit of over 385 billion CFA francs, or around 693 million dollars. The implementation of the electricity interconnection project, which would enable Cameroon to supply its neighbour, Africa’s largest economy and second largest trading partner behind China, with a population of 205 million, could improve the balance of trade, as Nigeria is a particularly large consumer of electricity.
A new Trade Agreement, concluded on 11 April 2014, should enable trade to expand. It provides for payment of transactions in freely convertible currencies. In addition, the National Agency for Food and Drug Administration and Control (NAFDAC) and the Agency for Standards and Quality (ANOR) have begun negotiations on the establishment of a Partnership with a view to further facilitating trade and combating the movement of contraband products between the two countries. Furthermore, the recent opening of the Bamenda-Enugu corridor, 196 km long on the Cameroonian side, is seen as an important factor of integration which should also open up West African markets to Cameroonian products.
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