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Poor policies, skyrocketing exchange rate undermine exports undertakings

By Sulaimon Salau
12 December 2021   |   4:29 am
Poor government policies, lack of incentives for non-oil export and high exchange rate, among others have been identified as factors currently affecting the production of locally manufactured.....

National Bureau of Statistics (NBS)

Poor government policies, lack of incentives for non-oil export and high exchange rate, among others have been identified as factors currently affecting the production of locally manufactured products for export sector in the country.

This is coming as the National Bureau of Statistics (NBS), revealed that the nation recorded a deficit trade balance of about N3,023.50 billion in the third quarter of 2021 as the value of imports continued to outweigh exports.

The Group Chairman, Manufacturers Association of Nigeria Export Promotion Group (MANEG), Ene Dafinone, who disclosed this while speaking on its activities in the country, said the goods firms are still groaning to survive under the harsh economic policies of government and the pandemic effects.

He said since the pandemic and aftermath of land border closure, exporters are practically struggling with reduced international demand coupled with domestic challenges such as high and increasing exchange rate; high cost of energy; multiple levies and taxes; port congestion; unending Apapa  gridlock; infrastructural deficiencies and smuggling among others.

According to him, Nigerian exporters are still groaning under these negative impacts of these export challenges on their export businesses since last year and yet to overcome them.

Dafinone said for instance, the outbreak of the global pandemic has been adjudged to be the major contributor to the fall in the value of manufactured goods exported globally, including that of Nigeria, in 2020.

The NBS in its latest report on foreign trade in goods, revealed that total exports was at N5,130.30 billion in third quarter 2021, which shows a one per cent growth compared to the second quarter of the same year and a 71.38 per cent growth compared to the third quarter in 2020.

“Export in the third quarter 2021 was still oil-dependent,” the NBS said.

“Crude oil exports recorded N4,026.18 billion and it remained the major product in total exports (78.48%), while non-crude oil was valued at N1,104.1 billion or 21.52 per cent of total exports of which non-oil products only contributed N546.27 billion representing 10.65 per cent of total exports during the quarter under review.”

Nigeria’s major export trading partners, according to the report were India (14.78%), Spain (12.22%), Italy (8.69%), France (7.08%), Netherlands (4.78%).

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