Nigeria and other developing economies lagged behind in global trade growth and digital market participation during the first quarter of 2025.
This is according to the newly-released July 2025 Global Trade Update published by the United Nations Conference on Trade and Development (UNCTAD).
UNCTAD stated that merchandise trade growth in Q1 2025 was driven predominantly by developed economies.
Imports by developed countries surged by approximately 4% on a quarter-over-quarter basis, while imports by developing nations—including Nigeria—declined during the same period.
“Developed countries’ trade increased more than developing countries’ in Q1 2025, driven by strong United States import growth and European Union exports,” the report stated.
“This pattern contrasts sharply with the trend observed over the previous 12 months and the longer-term trajectory, during which export growth in developing countries significantly outpaced that of developed economies,” the report noted.
UNCTAD also reported that South–South trade, which is trade among developing countries, also fell below average in Q1 2025.
According to UNCTAD, “though it remained relatively strong when viewed over a 12-month period. However, excluding East Asian economies, South–South trade contracted during Q1 2025 and was comparatively weaker on an annual basis.”
According to UNCTAD, despite the slow pace in developing regions, global trade experienced modest growth overall.
The organisation estimates that global trade likely rose by as much as US$300 billion in the first half of 2025, driven largely by robust U.S. import growth and export strength from the European Union.
Too many developing countries are also left behind in digital market
The UNCTAD report further reveals that developing countries are also lagging behind in digital market participation.
“Digital platforms now dominate the global economy, reshaping commerce, communication, and consumers’ lives. Seven of the world’s ten most valuable companies are digital giants, including Microsoft, Apple, Amazon, Google, and Meta. These firms do not just lead in one area—they sprawl across the digital economy, from cloud computing and e-commerce to AI and advertising, entrenching their dominance.
“Limited internet access in low- and lower-middle-income countries keeps millions locked out of digital opportunities—unable to participate fully in online markets or benefit from the data-driven economy,” the report stated.
“Without fair competition, open markets, better connectivity and infrastructure, developing countries’ chances of creating and capturing value in the digital economy are reduced.”
The report cited recent sanctions imposed by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Data Protection Commission on social networking platforms as illustrative cases.
“Facebook was fined about $220 million for engaging in these discriminatory and exploitative practices, harming Nigerian consumers,” the report noted.
More insights
UNCTAD noted that continued policy uncertainty and persistent geopolitical tensions are set to pressure global trade in the months ahead.
Also, in the second half of 2025, UNCTAD projects that global economic growth may slow down in many regions, suggesting that international trade may face slower growth.
