Reacting to a recent report from the Nigerian Export Promotion Council (NEPC), which stated that non-oil exports increased by 6.26 per cent in the first half of 2024, bringing total revenue for the sector to $ 2.7 billion, stakeholders said the government should remove the many obstacles that hinder non-export trade if this number is to significantly increase next year.
During the period under review, total export volume stood at 3.834 million metric tonnes, spanning 211 different products. These products ranged from agricultural commodities to items in the extractive industries.
For many years, Nigeria’s economy has been closely tied to the fluctuations of global oil markets, with oil being the major source of revenue and dominating exports. However, with oil prices becoming increasingly volatile and shifting demands that have reduced earnings from it, industry stakeholders have pointed out that Nigeria must properly develop the non-oil sector for continued survival.
President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, said non-oil exports are primarily driven by agriculture, solid minerals and the real sector and these are where attention must be directed to.
Nigeria’s agricultural sector recorded growth in Q1 of 2024, with exports rising to N1.04 trillion, a 123 per cent increase from the previous quarter and a 270 per cent rise compared to Q1 of 2023, according to the National Bureau of Statistics (NBS). This surge was primarily driven by exports of sesame seeds and cocoa beans, with demand particularly strong in Asia and Europe. In Q2 of 2024, the sector grew by 1.41 per cent, while the oil sector’s contribution to the nation’s GDP dwindled to 5.7 per cent. Idahosa said judging by this, the agroeconomic sector is positioned to play a pivotal role in the country’s future growth.
The solid minerals sector, if well harnessed, he said, can bring in trillions of naira yearly. In Q1 2024, trade in solid minerals reached N134.79 billion, representing 0.42 per cent of total trade. Exports surged to N63.41 billion, a 76.77 per cent rise from Q4 2023 and a 143.69 per cent increase from Q1 2023. Key exports included tin ores and concentrates to China, valued at N17.09 billion and cement clinkers to Cameroon, worth N8.62 billion.
The real sector would have been a huge contributor to the country’s export proceeds but is still battling with inconsistent and expensive electricity supply as well as expensive alternative energy costs, high production costs, competition from cheaper imported goods, FX crisis, poor funding, multiple levies, taxes and so on.
Former MAN chairperson, Apapa Branch, Frank Ike Onyebu, said manufacturers in Nigeria have the capacity not only to serve the region but the whole of Africa if only they were blessed with an enabling environment. He added that they have been agitating to export more, beyond the shores of the country, but the above factors have hindered their capacity, leaving them underutilised and struggling for survival. He said almost everywhere in the world, the real sector is usually among the top two contributors to every nation’s GDP, and wondered why Nigeria is different.
Stressing that every manufacturer desires to remain in continuous production no matter how minimal the profit margins, he urged the government to lift the numerous barriers hindering production as well as export trade. “If these barriers are lifted and we can have a working environment, the volume of trade in just six months will shock everyone. There are too many hindrances currently, which are discouraging many people. These are what the AfCFTA was meant to address but we don’t even know what is happening with that now,” he said.
President, Organisation of Women in International Trade, Blessing Irabor, said the country must address infrastructural challenges, regulatory constraints and government policies as well as security concerns to improve the country’s export numbers.
She said the cumbersome processes of regulatory agencies and multiplicity of agencies also pose a hindrance to exports. “Despite the renewed campaign for non-oil exports, oil still constitutes a large part of our exports. This shows that a lot more still needs to be done to diversify our resources and promote non-oil exports.
Governments at all levels and the various regulatory institutions must minimise all bottlenecks and bureaucracy associated with the exportation of raw, semi-finished and finished goods by Nigerian firms. We must also address the production challenges in priority sectors such as agriculture and the real sectors.”
Stating that the government and concerned authorities know what needs to be done to improve the country’s export numbers, she urged them to go beyond paying lip service and completely implement recommendations proffered by the different trade bodies and stakeholders.
