be useful in the current reality of the world economy. However, the Nigerian economy has great potential for

import substitution in the current process of de-globalization. However, it is crucial to use the Russian experience.

The study revealed that the comparison of Nigerian and Russian Soft drink markets is an excellent example of the

drawbacks that can occur upon realizing protectionism governmental policies. Therefore, the paper recommends

for import substitution policy that will promote economic diversification that supports local production and

Received: August 5, 2023. Revised: March 6, 2024. Accepted: April 26, 2024. Published: May 17, 2024.

Today, experts have decided to single out several

interrelated phenomena as the basis of global

political, economic, and technological patterns: the

fading processes of globalization and the increasing

political regionalization, technological development,

economic integration, and the strengthening of

issues that have been causing concern for a long time

corporate and interstate ties. In recent years, there has

been an increase in the trend of "self-reliance" among

large countries, which was manifested in the

progressive growth of protectionism in the

development of world trade. Many countries are

implementing their programs to restore national

on this path to understand the potentially problematic

areas and incorporate measures that can prevent

Substitution emerged due to the criticism of the

international division of labor strategy, which states

that less-developed economies engaged in the export

of primary products, and imported highly costly

finished manufactured goods, which are produced in

developed countries such as America and Europe [2].

the primary producing economies had no option but

to export more to balance trade deficits, while there

was an increase in the prices paid for imported

manufactured goods [3], [4]. The success stories of

the Import-Substitution Strategy in Latin American

and Asian countries have contributed significantly to

its continued implementation in the global

community to support the sustained development of

weak economies, such as that of Africa and some

parts of Asia. The Import Substitution policies failed

culture, which is manifested in the form of high

dependence on the export of primary agricultural

products in the international division of the labor

market. Therefore, the way forward in narrowing the

development gap in Africa with that of its

counterpart in Asia partner is to implement a policy

that will favor the growth of Small and Medium-

considered one of the top ten import trade partners

with Nigeria, and the main items imported from the

country are herrings, blue whiting, durum wheat, and

mackerel [12]. There is a chance of shifting focus to

importing other goods if this is a viable commercial

proposal for the two countries. This means that the

in Nigeria are divided into three: Fizzy or Carbonated

drinks, Energy drinks, and Healthy drinks.

Carbonated drinks include Coke, Sprite, Pepsi, etc,

while Energy drinks contain caffeine such as Red

Bull, Amber, etc. Healthy drinks are predominantly

bottled water, yogurt, and fruit drinks. There are over

one hundred brands of soft drinks produced by

manufacturers, of which two-thirds are indigenous

Nigerian Firms [13]. In Russia, the main groups of

soft drinks include juices, bottled water, carbonated

The objective of this study is to show the great

potential, in terms of economic benefits, that will

accrue if Russia can enter into a soft drink trade

partnership with Nigeria due to its vast market and its

ranking as the fifth-largest soft drink market in the

world [15].

This cross-sectional study aims to explore the

challenges and opportunities that could arise from

implementing an import substitution policy in the

soft drinks trade between Nigeria and Russia. The

erased for a long time, and it is challenging to

percent may fall on raw materials, parts, and

components of foreign production. Still, at the same

time, it is counted as produced in Russia in the

individual parts and assemblies increases. This is

clearly shown in the Rosstat table of commodity

groupings of goods (consumer, production,

intermediate) (Table 1), based on the Harmonized

System (HS) and the International Standard Trade

Classification (ISTC).

goods in Russian imports for the period 2006-2020

soft drink markets in Russia and Nigeria [23].

Considering the current situation in the Russian

economy and the behavior of several foreign

companies, the projected dynamics of the cost and

volume of commodity flows will have a multi-vector

player was the Aqualife company. In contrast, the

rest of the players are retail chain brands that have

yet to gain a strong position or local, regional players

who tend to concentrate on a small assortment of

drinks with the best-selling flavors. For instance, the

current pattern of de-globalization brings both

challenges and opportunities to Nigeria [24]. While

the country's economic growth heavily depends on

global trade, it also exposes Nigeria to risks of supply

chain disruptions and fluctuations in international

Purchasing Power Parity (PPP) and has been a

lucrative market for thousands of international

companies. Nigeria represents a key gateway to the

West African and African market with already

existing free trade relations with 14 other West

African countries [25], [26] and the African

Continental Free Trade Agreement (AfCFTA). These

agreements represent the potential markets for

Nigeria's future developing domestic industries if it

would choose to continue on the path of import

Alcoholic Drinks is structured into retail sales for at-

home consumption and on-premises or food service

sales for out-of-home consumption. Furthermore, at

4.6 billion dollars, Nigeria’s soft drink consumption

is more significant than almost the rest of sub-

Saharan Africa combined.

current reality is close to impossible. This leads not

only to the rise in prices that can be seen in Figure 3

but also to a restructuring of logistics routes, leading

to the dampening of established business processes.

It is also worth noting that the imports in Russia of

such equipment are over 500 mln. USD, which is

Chips are used in almost every type of equipment

(packaging, filling, bottling) for production and

labeling. Currently, however, up to 80-90% of chips

used worldwide derive from Taiwan, which has been

struggling to cope with the demand since the 2020

pandemic lockdowns. Origin of industrial equipment

used in Russia’s soft drink industry.

Nigeria Africa’s largest economy and middle-income

country, started to incorporate protectionist measures

in its international trade over a decade ago [30] while

soft drink market in Nigeria. The table shows the

development of the main sub-categories of the

market: carbonated soft drinks, energy, and sports

drinks, and non-carbonated soft drinks. The table

shows a steady growth of the industry across all sub-

expenditures Sales of soft drinks have never declined

in the country; it has always continued an upward

trend. Therefore, significant firms in this industry

are almost always guaranteed to increase sales.

Furthermore, Nigerian soft drink provides a range of