Core Insights - Nigeria's new De Minimis policy, effective September 2025, raises the tax-free import threshold from 50,000 Naira (approximately $120) to $300 (about 450,000 Naira), marking a significant milestone in African trade history and presenting unprecedented opportunities for Chinese foreign trade and cross-border e-commerce [2][6]. Trade Data Summary - In the first four months of 2025, bilateral trade between China and Nigeria reached $8.008 billion, a year-on-year increase of 20.40%, with Chinese exports to Nigeria amounting to $7.331 billion, up 28.30% [4]. - China's exports to Nigeria primarily consist of industrial products, such as synthetic fiber woven fabrics and communication equipment, while imports from Nigeria focus on energy and mineral products, reflecting Nigeria's role as a resource-exporting country [7]. Policy Changes - The new De Minimis policy significantly increases the tax-free import threshold by 150%, making Nigeria one of the countries with the highest tax-free standards in Africa [8]. - The policy includes usage frequency limits, allowing individuals to benefit from the tax exemption once per quarter, with a maximum of four times per year, aimed at preventing abuse of the system [9]. Impact on Trade - The policy is expected to lower the comprehensive costs for Chinese goods entering the Nigerian market, enhancing price competitiveness. For instance, the reduction in tariffs and operational costs could lead to a price competitiveness increase of approximately 15% for low-value goods [12]. - The Nigerian e-commerce market is projected to grow at a CAGR of 10.81%, reaching $10.03 billion by 2027, with the policy stimulating consumer behavior to make multiple purchases to utilize the tax exemption [13]. Export Opportunities - The policy is favorable for key export categories from China to Nigeria, including textiles, new energy products, and automotive parts, with a notable increase in small orders for furniture and steel products [14]. - The combination of tax exemptions, free trade zones, and digital payment advancements is expected to activate Nigeria's consumer potential, particularly among its 210 million population and growing middle class [14].