Despite Nigeria’s remarkable increase in export activity, stakeholders, including exporters in the nation’s maritime industry, have cautioned that the nation’s economic trajectory may face hurdles due to over-reliance on oil and limited manufacturing competitiveness.
Recall that data from the National Bureau of Statistics (NBS) revealed a significant increase in Nigeria’s total exports, reaching N12.69 billion in the fourth quarter of 2023. Total exports in the fourth quarter of 2023 increased by 22.68% when compared to the amount recorded in the third quarter of 2023 (N10,346.60 billion) as well as by 99.60% compared to the corresponding quarter in 2022 (N6,359.61 billion).
However, stakeholders who spoke to our correspondent regarding the increase in export, lamented that most of our exports are primary products, while also highlighting the lack of value-addition in Nigeria’s export portfolio. Some of the exporters who spoke to our correspondent expressed concerns about the sustainability of growth and the need for more value-added exports.
In a chat with our correspondent, the Chief Executive Officer of the Center for Promotion of Private Enterprises (CPPE), Dr. MudaYussuf, emphasized the necessity of enhancing manufacturing competitiveness to unlock the full potential of exports while also advocating for a strategic shift towards non-oil exports to alleviate pressure on foreign exchange reserves.
“Our manufacturing sector is not yet competitive in the area of exports. Most of our exports are primary products. This is not where we should be because if you look at countries that are doing well in the export markets, there’s a lot of value addition and there’s a lot of manufactured products that have been exported,” said Dr. Yussuf.
“The few manufactured exports that we take to our neighboring countries, especially in the sub-region, have been Mali, Cameroon, and the rest of them. So we need to also improve on that. And the way to improve on that is to ensure that our manufacturers are competitive. We create the environment for them to be able to produce. At the end of the day, we have to be competitive. We have to be competitive in terms of competitive price, so that we can see more manufactured exports. So that is the only way you can get the impact from exports. When you’re able to, even for your manufacturing sector, the way to get the best value from them is not just by selling them to domestic markets. It’s also by,” Dr. Yussuf added.
Speaking also to our correspondent, Elizabeth Olanrewaju Nwankwo, the CEO of OkLan Best Limited, acknowledged the positive strides made in export diversification and infrastructure development. However, Nwankwo underscored the importance of addressing infrastructure deficiencies and bureaucratic hurdles to fully harness Nigeria’s export potential, cautioning against over-reliance on oil amidst fluctuating global prices.
“Nigeria’s recent increase in exports is a positive sign for the country’s economic development. There are reasons to believe it could be on a path towards becoming more export-oriented, but there are also challenges to address,” said Nwankwo. “The rise in global oil prices and potentially higher production volumes could contribute to continued growth in export revenue. Also, initiatives to promote non-oil exports, such as manufactured goods and agricultural products, can help reduce reliance on oil and create a more resilient economy. However, oil still makes up a significant portion of Nigerian exports, making the economy vulnerable to price fluctuations.”
“Also, we have infrastructure challenges; deficient transportation infrastructure, like poor roads and inefficient ports, can hinder smooth export operations and raise costs,” Nwankwo continued. “A limited domestic manufacturing base can restrict the variety and competitiveness of exportable goods. Bureaucracy bottlenecks such as access to finance, and inadequate export promotion strategies can create hurdles for non-oil exporters.”
Meanwhile, at a recent press briefing in Abuja, the Nigeria Customs Service, led by Comptroller General Adewale Adeniyi, reaffirmed its commitment to boosting non-oil exports, aligning with President Bola Ahmed Tinubu’s agenda for economic diversification. Adeniyi emphasized collaboration with the Nigeria Export Promotion Council to facilitate export transactions and prepare for the African Continental Free Trade Area.
“We initiated discussions with the NEPC to sustain the positive growth in export transactions,” stated Adeniyi, highlighting the NCS’s efforts to enhance export facilitation and prepare for the African Continental Free Trade Area (AfCFTA).
He noted that achieving sustainable export growth requires concerted efforts to address systemic challenges
