Exporters under the aegis of Manufacturers Association of Nigeria Export Group (MANEG) have called on the government to reform the country’s export policies to address the numerous trade barriers hindering competitiveness and Nigeria from fully harnessing the benefits of the Africa Continental Free Trade Agreement (AfCFTA).
They also called for urgent reforms of the Export Expansion Grant (EEG) scheme and the promotion of non-oil trade to increase the country’s economic growth and development.
Speaking at MANEG’s yearly general meeting (AGM) and public discourse in Lagos, the Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, said the government is determined to resolve the long-standing challenges affecting exporters, particularly those related to the EEG scheme.
Themed: ‘Difficulties in Export Trading under Multilateral Trade Agreements: A Threat to AfCFTA Implementation’, it drew participants from the public and private sectors, academia, government and development agencies.
Stakeholders agreed that collaborative reforms, particularly on the EEG, infrastructure development, and trade facilitation, would be critical to positioning Nigeria as a regional export leader under the AfCFTA framework.
Chair, MANEG, Odiri Erewa-Meggison, commended the Federal Government for efforts in clearing EEG backlogs but urged a comprehensive policy review to revamp the process. She said they have been assured by the Ministry of Trade that the outstanding backlog of about N60 billion owed to exporters would be cleared.
“We must change the framework for export grants. We must move away from promissory notes and start using export credit certificates so we can repatriate and re-invest export proceeds into the country. Manufacturing exporters have faced declining competitiveness in the global market due to high exchange rates, energy costs, multiple levies, port congestion and infrastructure shortages. There is so much potential in Nigeria and we can only tap into it if we are competitive on the global stage,” she said.
She thanked the Nigerian Export Promotion Council (NEPC) for funding the submission of baseline export data for 2023 and 2024, describing it as a step toward improving sectoral transparency and planning. She said MANEG remained committed to supporting AfCFTA’s objectives but warned that unresolved domestic barriers could hinder Nigeria’s ability to maximise its benefits.
Oduwole, who was represented by the Assistant Chief Commercial Officer in the federal trade ministry, Hajara Usman, said the ministry is aware of the difficulties in exporting under multi-lateral trade agreements in respect to AfCFTA implementation and is working with the private sector to find lasting solutions.
She said the challenges exporters face, ranging from non-tariff barriers, infrastructural bottlenecks, weak institutional frameworks and limited industrial capacity, pose a huge threat to Nigeria’s ability to fully harness AfCFTA’s benefits.
She further noted that excessive documentation and regulatory fragmentation, unnecessary bottlenecks, as well as inconsistent standards, amongst other problems, continue to discourage Nigerian exporters.
She said they are working to streamline documentation processes, digitise customs operations, harmonise standards across borders and are committed to addressing all the numerous issues. She added that in partnership with the ministries of power, transportation and finance, they are working together to revamp infrastructure, reduce logistics costs and boost export competitiveness. Oduwole revealed that the ministry has set up a technical working group to address concerns surrounding the EEG and to clear outstanding claims.
“We are working closely with the Ministry of Finance to ensure that these problems are resolved,” she added.
The minister noted that Nigeria’s participation in AfCFTA requires decisive action to overcome non-tariff barriers, weak industrial capacity and poor infrastructure; and reaffirmed the government’s pledge to deepen partnerships with manufacturers.
“The challenges before us cannot be addressed by the government alone. We require a strong partnership between the public and private sectors. Together, we can transform Nigeria from a commodity-dependent economy into a diversified, export-driven powerhouse,” she said.
Delivering his keynote presentation, Professor of Economics at the University of Ibadan, Olawale Ogunkola, urged stakeholders to focus on adding value to local products and diversifying export destinations.
“We must move from exporting raw materials to processed goods; that is where stability and higher earnings lie. The cocoa value chain, for example, already shows some value addition, but we can do far more,” he stated. He noted that Nigeria’s over-reliance on oil made the economy vulnerable to global shocks. “If anything happens to the oil sector, the whole country feels the impact. Export promotion and structural transformation are the only ways out,” he stated.
The professor cautioned against depending on limited export markets, saying, “We shouldn’t concentrate on just one or two markets. We must diversify both products and destinations to safeguard our economy from global uncertainties.”
Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said export growth was crucial to sustaining ongoing economic reforms and restoring industrial competitiveness. Noting that manufacturing has taken a back seat in government policy for too long, he said exports appear to be the only way to accelerate needed reforms.
Stressing that encouraging local investors remains essential to industrial recovery, he said, “When you benefit a producer and an exporter, you benefit the country. If we support our investors, Nigeria will reap the full rewards of its economic potential,” he said.
