Foreign trade enlarges the market for a country’s output. Exports may lead to increase in national output and may become an engine of growth. Expansion of a country’s foreign trade may energize an otherwise stagnant economy and may lead it on to the path of economic growth and prosperity. The relationship between trade and growth is envisaged through an export led growth strategy. The study focuses on the impact of trade on Nigeria economic growth. In carrying out this project, linear multiple regression analysis techniques was used in assessing various components of foreign trade. Data used in this study were extracted from CBN statistical bulletin, 2011 edition. The regression analysis was carried out using E-views statistical tool. From the analysis the results shows that export, exchange rate, and per capital income are positively related while economic openness, import are negatively related to output (proxy by GDP) of Nigeria with 60%, 0.4%, 101%, 41%, 1.2% respectively and the Adjusted R2 is 0.99 for the period of 1980-2010. This study has examined the performance of foreign trade in relations to economic growth. It is therefore concluded that, conscious efforts should be made by government to fine-tune the various macroeconomic variables in order to provide an enabling environment to stimulate foreign trade by engaging in more of export trade and in effect curtail on import trade which has a negative effect or strain the economy.

Foreign trade enlarges the market for a country’s output. Exports may lead to increase in national output and may become an engine of growth. Expansion of a country’s foreign trade may energize an otherwise stagnant economy and may lead it on to the path of economic growth and prosperity. The rel...