As a mark of the growing influence of the non-oil
sector in the country’s export business, more
products are leaving the shores of Nigeria to
destinations abroad, MAUREEN AZUH writes
In line with the Federal Government’s efforts at
diversifying the economy, the Nigerian Export
Promotion Council said 11 more products had been
added to the non-oil products that the country
exported to the global market between 2013 and
now.
The new products, according to the NEPC, are
educational books, robusta coffee, double folded
dust sheets, ice making machine, mica muscovite
and leather furniture.
Others are high density polyethylene, aluminium
ingots, reduced iron and iron pellets, garments and
yam.
The primary markets and destinations for the
products are Sierra Leone, Spain, the United
Kingdom, Ghana, India, Republic of Benin, Japan,
Bulgaria and the United States, while high density
polyethylene is exported to the Economic
Community of West African States member
countries.
The NEPC said there was a steady growth in the
non-oil exports, with a value of $2.97bn in 2013,
accounting for 15.9 per cent increase over 2012,
with a value of $2.56bn .
“We have about 11 new products, which we
introduced from 2013 to various new markets in
Africa and the world; these are products that give
Nigeria competitive advantage; it is a very
interesting development for the country,” the
Executive Director, NEPC, Mr. Olusegun
Awolowo, told our correspondent.
He added that the country’s exports were no
longer limited to the traditional markets of
Europe, especially the United Kingdom.
According to statistics by Cobalt International,
other non-oil products that were exported from
the country to other parts of the world in 2013
comprised cocoa and cocoa preparations, sheep
and goat skins, sesame seeds, aluminium articles,
rubber, tobacco products, cotton, yarns and woven
fabrics, copper, cashew nuts, prawns, shrimp as
well as fish.
The NEPC said at a recent workshop that the
country’s participation in international trade fairs
and exhibitions every year had contributed largely
in exposing local companies to the international
market and opened up new opportunities for
foreign exchange.
It stated, “In the year 2013, 13 of such outings were
spearheaded by the council. A total number of 126
companies, mainly Small and Medium Enterprises,
benefited. On-the-spot sales and orders generated
by these companies amounted to $627,108.23 and
$3,716,920.51, respectively.
“Executed order as of the end of February 2014
that was reported to NEPC was $763,247.85. It is
also on recorded that made-in-Nigeria products,
especially in the West African sub-region market,
elicited great demand.”
Awolowo said despite challenges in agricultural
yield and the security issues in the northern part of
the country, there were strong indications that the
value of non-oil exports at the end of 2014 would
be higher than the previous year’s.
“This is the second quarter, the year can be better
and we feel we can do better with a little above the
result we have in 2013,” he added.
Awolowo noted that the rebased Gross Domestic
Product of the country had increased the
confidence of other countries in the Nigerian
economy.
“On the industry, there is an effect of the rebased
GDP and we are using that as a wake-up call that
we must export more. We must keep up with the
Nigerian Industrial Revolution Policy by showing
that we export processed goods so that we can add
value and create jobs. It is a positive thing for
Nigeria and we have the population to back it up,”
he added.
Awolowo, however, expressed fears that the
Export Expansion Grant might affect the
performance of local manufacturers and
consequently the export figure.
The Director-General, Lagos Chamber of
Commerce and Industry, Mr. Muda Yusuf, also
said that with the productivity challenges plaguing
the country, it would be difficult for the non-oil
sector to make significant impact on the economy
despite its growth rate.
He said, “The economy has very serious
productivity challenges and as long as we have
these problems, especially by enterprises and those
that are in the real sector of the economy, it is
difficult to make any significant impact in the
non-oil sector.
“Currently, the bulk of what we export is primary
products and that cannot give us much value as an
economy. When you export something on which
you have added value but because of productivity
challenges, it is difficult to produce anything
competitively; therefore, we are not making the
kind of mark we should make in the non-oil
export sector.
“Even within the oil sector, we are not supposed to
be exporting just crude oil; that is a problem for
Nigeria as an oil producing country.”
According to Yusuf, as long as the productivity
level remains low, the country cannot be
competitive. He added that lack of basic
infrastructure, high production costs, bureaucracy
and high cost of funds remained major problems
for the non-oil export.
He said, “How can we produce for export with
those conditions, or with a manufacturer using
diesel in his factory? We need to address
productivity issues in the real sector, and then, the
government should be more serious in creating
value addition even in the oil sector.
“It is bad that we are still exporting crude and
importing refined products when we should be
exporting refined and petrochemical products
from our plants where we will make more money
than crude oil itself.”
The President, Nigerian Association of Chambers
of Commerce, Industry, Mines and Agriculture,
Alhaji Mohammed Abubakar, also said there was a
need for the country to align with global trend to
enhance its competitiveness by re-focusing and re-
strategising on productivity.
“To achieve this feat of boosting non-oil exports
in the country, with a view to making the sector
vibrant and competitive in terms of exportable
products and revenue generation, the government
must be ready to demonstrate the political will by
ensuring the provision of the desired enabling
environment, including, of course, adequate
infrastructure and incentives to encourage the
production of quality goods and services in
Nigeria,” he said. http://www.punchng.com/business/financial-punch/nigeria-adds-11-non-oil-products-to-export-list/