The Nigerian Export Promotion Council (NEPC) has recently unveiled concerning statistics indicating a decline in the nation’s non-oil exports. Despite the federal government’s dedicated efforts to diversify the economy away from oil dependence, the NEPC disclosed a reduction from $4.8 billion in 2022 to $4.5 billion in the previous year. This revelation was made by Nonye Ayeni, the Chief Executive Officer of NEPC, during the presentation of the council’s comprehensive progress report on the non-oil export performance in 2023, held in Abuja.
Ayeni elaborated on the multifaceted nature of the decline, attributing it to several factors. These included rejections, suboptimal product certification processes, political upheavals in neighboring African countries, challenges stemming from exchange rates, and a surge in international trade, among other influential elements. The complex interplay of these variables has evidently impacted the export landscape, posing challenges to the envisioned economic diversification, non-oil exports.
Despite the overall downturn, there were notable positive aspects highlighted in the report. Ayeni shed light on the fact that the period under review saw a significant increase in the export of various products, totaling 273 distinct items. These ranged from manufactured goods and semi-processed materials to solid minerals and agricultural commodities. The observed uptick amounted to an impressive 28.04% compared to the preceding year, signaling resilience and diversity within the export sector.
Ayeni detailed the top 20 products exported in 2023. Notable mentions included urea, cocoa, beans, sesame seeds, soya-beans/meal, cashew nuts/kernels, aluminum ingots, and hibiscus flower. These commodities collectively represented a crucial segment of the export portfolio and reflected the diverse nature of Nigeria’s non-oil export activities, non-oil exports.
The report also shed light on the leading companies contributing to this export dynamic. Indorama, Eleme Fertilizer and Chemical Limited, and Dangote Fertilizer Limited emerged as front-runners, with Indorama securing the lead with a substantial value of $524.33 million. Dangote Fertilizer Limited closely followed with a commendable value of $383.07 million, underscoring the significant role played by these enterprises in the non-oil export landscape, non-oil exports.
In terms of financial institutions, Ayeni emphasized the active participation of 32 banks in the establishment of NXP (Non-oil Export) forms for export during the year. A total of 21,390 NXP forms were processed, with Zenith Bank Plc leading the way by handling 39.09% of these forms. United Bank of Africa (UBA) Plc and First Bank of Nigeria Plc also contributed significantly, recording percentages of 10.55% and 9.88%, respectively.
Non-oil exports
As part of her concluding remarks, Ayeni urged financial institutions to capitalize on the opportunities within the non-oil export sector. She stressed the importance of their support in enhancing exporters’ capacity to scale up productivity and access international markets, especially in light of the ongoing implementation of the Africa Continental Free Trade Area (AfCFTA). This call for collaboration and strategic involvement underscores the broader significance of the non-oil export sector in Nigeria’s economic landscape.
Source: guardian.ng
