CEM REPORT, TRADE | The continued reliance on crude oil for revenue generation for Nigeria has had crippling effect on the nation’s economy following uncertainties that characterizes the crude oil market. Some of the challenges fluctuation in crude oil market has caused for the country has not been overcome. The previous and present administrations have talked about revenue source diversification which has remained a mere proposition with little or nothing done it.
Well, the President Bola Ahmed Tinubu led administration might be on the right path to change the narrative as it has beamed its development light on improving the quality of locally produced goods for export purposes.
According to the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, the goal is to increase the confidence of international buyers in Nigerian products while stemming the current shortage of foreign exchange in the country.
While speaking in Abuja, she noted that it is important to prioritise the production, processing and packaging of locally manufactured non-oil export goods for Nigeria’s economic growth and sustainable development.
“There is a need to initiate practicable economic programmes and implement trade policies that will help address issues like job and wealth creation, inclusiveness, and most importantly, policies that would stimulate the growth of Micro, Small and Medium Enterprises (MSMEs), as critical contributors to the national economy.
“This development will not only preserve Nigeria’s reputation as a reliable trading partner but also increase the confidence of international buyers in Nigerian products.”
The Federal Ministry of Industry, Trade and Investment has over the years worked closely with parastatals under its supervision to engender trade and facilitate industrialisation. Last year, under the Technical Committee on Export Rejects, the ministry working with the NEPC and other relevant Ministries, Departments, and Agencies (MDAs) of government, made valuable recommendations to the government on how to end the rejection of Nigeria’s products in the international market. This has led to a reasonable reduction in the amount of product rejected from our export baskets.
Speaking on the DEW project, Anita said the project is a one-stop facility for the storage of products, packaging, and labeling, pre-shipment inspection, and fumigation of goods in preparation for transportation to the Ports.
She added that the DEW project is designed to assist exporters in conducting their pre-export operations within a facility to ease logistics challenges associated with congestion in our various ports.
She said the DEW Project, “with its streamlined processes and efficient logistics solutions, exemplifies the innovative spirit of our government in improving our export sector and making Nigerian products more competitive in international markets.
Anite noted that the exportation of goods and services is paramount to helping Nigeria resolve its current forex challenges, stimulate the economy, boost entrepreneurship and create employment opportunities.
Nigeria has several failed to meet international standards of product quality but especially product packaging, this has led to several rejected of Nigerian products by the international market. However the last added created and implemented policies to drive the export of locally manufactured goods.
As of the close of the second quarter of 2023 (Q2’23), Nigeria’s total exports amounted to N5,726.25 billion. Total exports increased by 8.15 per cent when compared to the amount recorded in the first quarter of 2023 (N6,487.04 billion) but declined by 5.20% compared to the corresponding quarter in 2022 (N7,400.89 billion).