The Oyo State Shippers Association has urged the government to create enabling business environment for exporters to boost economic growth and create jobs.
The Chairperson of the association, Mrs Elizabeth Nwankwo, stated this in Ibadan on Tuesday while speaking on government policies affecting exportation businesses.
According to her, government intervention would go a long way to address the challenges facing exporters.
“Yes, there are several government policies in Nigeria that affect the exportation of made-in-Nigeria goods and the overall business environment.
These policies can create both opportunities and challenges for exporters,” she said.
Nwankwo, the Chief Executive Officer (CEO), OKLAN Best Limited, identified the need for the Nigerian Export Promotion Council (NEPC) to continue its various programmes aimed at promoting non-oil exports.
“These include export training, market research, and trade fair participation.
“However, the effectiveness of these programs can be limited by funding, logistics/location and bureaucratic hurdles,” she said.
Nwankwo stated that Nigeria’s trade policies, including tariffs and import restrictions, can impact the competitiveness of Nigerian exports.
“The African Continental Free Trade Area (AfCFTA) presents both opportunities and challenges, requiring businesses to adapt to new trade regulations.
“Also, fluctuations in the foreign exchange rate can significantly impact the profitability of exports.
“Another is the restrictions on access to foreign exchange as it can hinder exporters’ ability to import necessary inputs and complete transactions,” she said.
According to her, poor infrastructure, including inadequate transportation, power supply, and port facilities, increases the cost of exporting and reduces competitiveness.
“Government efforts to improve infrastructure are ongoing, but progress is slow,” Nwankwo said.
The Oyo Shippers chairperson said that regulations related to product standards, quality control, and certification could create barriers to entry for exporters.
She stated that the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON) played crucial roles in ensuring product quality.
Nwankwo, however, called for one stop shop for the agency, adding that it would be necessary for effectiveness and efficiency.
On fiscal policies, she said the tax policies, including export incentives and tax exemptions, could impact the profitability of exporting.
“However, complex tax regulations and bureaucratic procedures can create challenges for businesses,” Nwankwo said.
She called for access to finance for those in the non-oil sector adding that limited access to affordable financing had been a significant challenge for exporters, particularly Small and Medium Enterprises (SMEs).
“Banks are unable to provide tailored interventions for SMEs. Commercial Banks are not suitable for us.
“Government interventions, such as the Export Expansion Grant (EEG), aim to address this issue, but more needs to be done,” Nwankwo said.
She, however, urged the government to address security challenges in certain regions of Nigeria which had been disrupting supply chains and hinder export activities.
