The push for diversification of the economy to widen the revenue basket in the last few years continues to gain traction for various sectors of the economy. To accomplish the objective, The Nigerian Export Promotion Council (NEPC) has unveiled many initiatives , including the ‘Export For Survival Vision’ to boost non-oil export proceeds into the country. Franca Ochigbo reports.
Nigeria is set to boost its revenue streams by improving on its non- oil exports as part of measures to diversify its fragile economy.
Part of the reasons for embarking on this drive to starve off dependence from receipts arising from crude oil exports, which has been the mainstay of the economy for many decades,
To reverse the trend, one of its agencies in the Ministry of Trade and Industries – the Nigerian Export Promotion Council (NEPC),is set to renewed its vigour in that direction.
The council has set a target to ensure exporters are empowered and encouraged to expand their markets through the Export for Survival vision.
This according to the council will ensure the flow of non-oil export proceeds into the country.
The export sector has in recent times faced so much challenges, including the effect of the covid-19 pandemic on export operations, distress calls of practitioners on regulatory constraints and restrictions on export business and the need to strengthen the diversification agenda of the federal government.
The Executive Director/ Chief Executive Officer of NEPC, Dr. Ezra Yakusak said the government is determined to pull through with the agenda.
He spoke during the National Conference on Non-oil Export, with the theme : “Export for Survival: Optimizing Nigeria’s Non-Oil Export Potential”.
He said a major concern of the government is the Nigerian non-oil export performance in recent times in comparison to imports.
He noted that a report from Pre-shipment Inspection Agencies (PIA) revealed a significant growth in export proceeds in the last five years 2017-2021 from $1.2 billion to $3.4 billion as against an annual average of $22 billion food importation into the country.
Yakusak said to close this gap, concerted efforts are required from all practitioners in the non-oil export value chain.
This mve, he said, fueled the convergence of stakeholders with varied experience in export and quasi-export businesses to participate in the national dialogue as a veritable way of resolving emerging issues.
Besides, he said the dialogue would also allay palpable fear of export practitioners on government decisions and actions perceived to be inimical to export operations.
According to the Executive Director : ” “The Export for Survival campaign which was launched by the Council February 17, 2022, is a clarion call to action. It is a deliberate effort to stimulate national consciousness to current realities in the non-oil export ecosystem. It is also a wakeup call for massive investment and a campaign to leverage our vast potentials and increased opportunities in the sector.
“This is a sure way to sustainable economic growth and prosperity. The Council firmly believes that our survival as a nation depends on non-oil exports. We have therefore scaled up efforts to mobilize citizens to engage meaningfully in the sector which is the nation’s next line of defence”.
Vice President, Prof. Yemi Osinbajo who spoke during the conference emphasized on the need for productivity.
He said local investment is more important than foreign investment,emphasizing the need to focus on productivity which will be a guiding focus for local regulatory agencies.
Osinbajo said : ‘What we are interested in is productivity which will bring jobs. We are determined to accelerate our efforts through holistic stakeholders input”.
According to him, “The theme export for survival carries the urgency of the challenge that the nation increasingly faces, if we do not accelerate the diversification of the Nigerian economy, we will not understand and appreciate the extensive impact that this will have on our people, so we are committed to moving quickly and assuredly.
“The second responsibility of government at all levels is leading that charge to unlocking this potential and this involves not just the government but the states also. We are on our way in respect to all our commitments. The challenge facing our non-export economy is huge especially in the light of what has transpired in the last eight years.
“In 2021 Nigerian non-oil revenue stood at about N1.15trillion which represented the growth in GDP of about 4.75 percent In the fourth quarters and about $92.51 to the nation’s overall GDP so in actual fact the non-oil economy has contributed significantly to the GDP. In 2019 the year preceding Covid-19 the normal oil revenue represented 92.68 percent of the total GDP so there again almost a one percent increase. The growth following the year indicates a growing resilience of the non-oil sector and it is very clear that we have also become even more susceptible to growth as opposed to shocks”.
Osinbajo said their jobs as government is to assiduously enable businesses especially with the regulatory policies with its procedures and processes progress.
He went on : ” This must be coupled urgently with the supporting infrastructure needed to aid production, distribution and networking. The core mandate of the Presidential enabling business environment council PEBEC has found expression in the master action plan of 7.0 on the ease of doing business and in the way to consolidate and ensure the removal of regulatory constraints especially around agro-export. This is also to drive the electronic filing of taxes and publication of insolvency regulation of companies and Allied matters Act 2020. “The 7.O.agro export plan prioritizes trade facilitation reforms to minimise cross border trade and transport logistics for Nigerian companies to do better and to be more compliant with the AFCTA export compliance regulations.”
In a presentation by Segun Ajayi-Kadir, Director General, Manufacturing Association of Nigeria, said this is a wake-up call to take non-oil export more seriously, noting that the discovery of crude oil brought a shift that made the country to majorly depend on the Oil sector to the neglect of other sectors.
He said: “This made the economy susceptible to fluctuations in revenue, occasioned by the usual instability associated with the prices of crude oil in the international market.”
Kadiri said the highest export volume done by Nigerian businesses in recent times was $62.5 billion and that was just before Covid-19, which declined principally due to the Covid-19 pandemic in the year 2020 which brought a slight improvement post-Covid in 2021. He again lamented that the fact that Nigeria is only able to take up less than one percent of the global market share of most products it exports is a sign that all is not well. Apart from the perennial macro-economic, infrastructure and policy environment challenges, there are emerging challenges that have compounded the situation and led to declining volume of the meagre exports from the country.
The MAN DG said: “It is imperative for Nigeria to address the perennial challenges confronting businesses in Nigeria. The manufacturing sector is particularly hit and deliberate action must be urgently taken to boost its competitiveness.”
Nigerians Amb. World Trade Organisation, Amb. Abdulhamid Adamu during his presentation noted that the negative impact on Nigeria’s external reserve and exerted unprecedented pressure on Naira, which includes the exceptional reversals in capital flows at the same time weakened Nigeria’s ability to finance its import while undermining its Balance of Payment position, stating that in order to build a resilient economy, Economic Diversification and digitization especially export diversification is key.
Adamu- noted that, the government should focus on addressing constraints that continue to undermine productivity and the competitiveness of the non-oil sector, they should also look at the difficulties in obtaining pre-export working capital and finance should be given attention. The government will also do well by looking at challenges of lack of resources and know-how to establish and support Nigeria product brands, the Nigeria tariffs and Non-Tariff Barriers on critical industrial inputs is needed to boost manufacturing and unpredictable interest rate and exchange rate.
The ED noted that part of the Council’s efforts in this regard, amongst others, is the Zero Oil Plan, which was designed at the heels of the economic recession to make the country less dependent on oil while leveraging on the abundant natural and agricultural resources for foreign exchange earnings, employment generation and overall socio-economic development of Nigeria.