In a development that could significantly bolster Nigeria’s economy, the Nigerian Export Promotion Council (NEPC) announced a substantial surge in non-oil exports during the first half of 2024. The Council’s Executive Director/Chief Executive, Nonye Ayeni, revealed that non-oil exports generated a remarkable $2.7 billion in the period, representing a 6.26 percent increase compared to the previous year.
Ayeni, speaking at a press conference in Abuja, attributed this growth to a combination of factors, including the successful transition of government in May 2023 and the implementation of policy initiatives under the present administration. Additionally, the NEPC’s “Operation Double Your Exports” initiative has played a pivotal role in stimulating the sector’s performance.
Diversification and Value Addition
The increase in export value is not only a testament to the growing demand for Nigerian products in international markets but also a reflection of the country’s efforts to diversify its economy away from its traditional reliance on oil. Ayeni noted that the exported products ranged from agricultural commodities to products from extractive industries, indicating a broader range of offerings.
“This performance indicates that Nigerian products are gradually diversifying from traditional raw agriculture exports to semi-processed and manufactured goods,” Ayeni stated. “This is a positive development as it can lead to higher value-addition and increased foreign exchange earnings.”
NEPC’s Strategic Initiatives
The NEPC has been actively involved in promoting non-oil exports through various initiatives. One such initiative, “Operation Double Your Exports,” has been instrumental in driving growth. Ayeni emphasized the tangible results achieved in just six months of implementation, expressing optimism for the sector’s future contribution to Nigeria’s Gross Domestic Product (GDP).
“With the several export intervention programs and projects we have started and are ongoing, complemented by the NEPC flagship campaign program, ‘Operation Double Your Exports,’ the sector is positioned to contribute immensely to the country’s Gross Domestic Product, increase the country’s foreign exchange earnings and thereby ensure sustainable economic growth,” she stated.
Emerging Export Opportunities
Ayeni also highlighted the growing prominence of several exportable products, such as fresh vegetables, citrus peel, and sorghum, which are increasingly in demand in global markets. She emphasized the untapped potential in the services sector, particularly in logistics and ICT, and urged financial institutions to provide affordable financing to support exporters.
“This support is critical to increasing the basket of exportable products and stimulating value-addition, thereby increasing Nigeria’s foreign exchange earnings,” Ayeni added.
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Addressing Challenges and Ensuring Quality
While the outlook for non-oil exports appears promising, challenges remain. Ayeni acknowledged the importance of reducing product rejects to maintain Nigeria’s reputation in international markets. She emphasized the council’s efforts to collaborate with relevant agencies to ensure adherence to global quality and standards.
“The council is addressing the issues by collaborating with relevant agencies and parastatals to create awareness, build capacity for good agricultural practices, labeling and packaging and ensure adherence to the quality and standards of exports in the global market,” she said.
Inflationary Pressures
In the meantime, the Central Bank of Nigeria’s (CBN) Inflation Expectations Survey for July 2024 revealed that businesses in Nigeria are facing inflationary pressures, although their perception is slightly less pessimistic than that of households. The survey indicated that energy prices, exchange rates, and transportation costs are the primary drivers of inflation.
While the non-oil export sector has shown resilience in the face of these challenges, it is imperative for policymakers to address inflationary pressures to ensure a conducive environment for businesses and maintain competitiveness in global markets.
If You Ask Me
The surge in non-oil exports is a significant milestone for Nigeria’s economy. By diversifying its export base and promoting value-addition, the country can reduce its dependence on oil, create jobs, and improve its foreign exchange reserves. The NEPC’s efforts, coupled with government support and the growing demand for Nigerian products, are key factors driving this positive trajectory. As the sector continues to evolve, it is essential to address challenges such as inflationary pressures and quality control to ensure long-term sustainability and growth..
