Historical background of commerce in Nigeria. - SS1 Commerce Lesson Note

Prior to the colonial era, Nigeria was home to several indigenous kingdoms and empires, such as the Benin Empire, the Oyo Empire, and the Sokoto Caliphate. These societies had well-developed systems of trade and commerce, with goods like textiles, agricultural products, and crafts being exchanged within and beyond their borders.

The arrival of European powers in the 15th century, starting with the Portuguese, brought significant changes to Nigerian commerce. The Europeans sought to exploit Nigeria's resources and establish trade networks for their benefit. They introduced new goods, such as firearms, textiles, and luxury items, which transformed local trade patterns.

During the 19th century, the transatlantic slave trade declined, and Nigeria became an important center for palm oil production. Palm oil, along with other agricultural products like groundnuts, cocoa, and rubber, became major export commodities, attracting further European involvement. The British, in particular, gained control over different regions in Nigeria and established colonial administration.

Under British colonial rule, Nigeria's commerce underwent further changes. The British aimed to extract resources and develop export-oriented agriculture for their own benefit. They constructed infrastructure such as railways, ports, and roads, which facilitated trade and transport of goods. However, these developments primarily served colonial interests and did not foster significant industrialization within Nigeria.

After gaining independence from Britain in 1960, Nigeria faced numerous economic challenges. The country relied heavily on revenue from oil exports, which led to a neglect of other sectors, such as agriculture and manufacturing. This heavy dependence on oil made Nigeria vulnerable to fluctuations in global oil prices and hindered diversification of the economy.

Despite these challenges, Nigeria has experienced periods of economic growth and has a thriving informal sector characterized by small-scale trade and entrepreneurship. The country is rich in natural resources, has a large population, and possesses a growing consumer market, which presents opportunities for commerce and investment.