The Nation Newspaper

Tag: export

  • NACCIMA boss suggests export reforms

    NACCIMA boss suggests export reforms

    The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, has impressed on the federal government the need to revamp the nation’s export sector by formulating policies geared towards driving development in the sector.

    Isemede, who made this appeal while speaking in an interview with The Nation recently, deplored the current dysfunctional attitude of the people and the government in the dwindling fortunes of the export market, adding that the sector holds a lot of promise as far as economic growth is concerned.

    To address some of the challenges besetting the sector, the NACCIMA boss called for the development of a strong value chain as well as an efficient commodity board, stressing that it is impossible to run a successful export market without a commodity board.

  • How product counterfeiters ruin export market

    For local manufacturers, business has been anything but good, no thanks to the nefarious activities of product fakers, who in recent times have proliferated the export market, thereby ruining the chances of genuine manufacturers as well as loss of billions of naira, in terms of revenue earnings, to the country. Making this disclosure recently in Lagos was the Chairman, Manufacturers Association of Nigeria (MAN) Export Promotion Group, Mr. Tunde Oyelola. The event was at the interactive session between the management of MAN and the Nigerian Export Promotion Council (NEPC). According to Oyelola, although made-in-Nigeria products have competitive advantage in the export market, fake products being exported from the country remains the greatest source of nightmare to genuine manufacturers, who have been at the receiving of this bludgeoning trade in fake products. Speaking further, he said the major challenge faced by exporters in Africa was the high cost of logistics in the region. He, however, called on all concerned stakeholders to come together to ensure that they remain focused and unrelenting in order to achieve the export trademark which is transnational; while also delivering quality services across all the sectors in order to achieve socio- economic development in the country. Echoing similar sentiments, the Director-General, MAN, Mr. Rasheed Adegbenro, observed that internal markets are shrinking every day, urging the stakeholders to endeavour in bringing new challenges to the business environment. He said although Nigeria is not alien to the export environment, a lot still needs to be done in terms of value addition, adding that lack of proper implementation of the right policy was the bane of export market. The influx of substandard products, he stressed, “has contaminated the system because of corrupt practices.” In his remarks, Mr. Aliu Mohammed Lawal, Acting Executive Director, NEPC, while acknowledging the challenges being faced by exporters, however, assured that his agency was desirous of encouraging stakeholders in the non-oil export market.

  • ‘Export market remains a goldmine for SMEs’

    ‘Export market remains a goldmine for SMEs’

    Dr. John Isemede, Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), is very optimistic about the potentials of the export market as far as the development of the small and medium scale enterprises is concerned. In this interview with Adejoke Famudele, he gives useful suggestions on how SMEs can expand their businesses across other frontiers.

    It is widely acclaimed that the export market is one of many avenues through which SMEs can expand their businesses across other frontiers. But more often than not, exporters face stiff challenges in different quarters. Can you speak to some of these issues? Yes. But I want to shed more light. Some of us have been involved in the export business for more than 30 years now. I recall while in the university, my head of department (HOD), Professor Anaho, encouraged some of us then. I can give you 30 ways that banks are supposed to support these products, what is called pre and post, before the main export and after the export because you can get order and you don’t have the money and you will have to run to the banks to give you support. Because if the export offer comes before money is available, it could be by date of collection basis and you cannot close your factory and all that, you still need support from the banks. So these are the intricacies involved. But talking of export, without having commodity boards or commodity exchange, we cannot have a successful export market. The question we must ask ourselves today is who is developing the value chain? Normally, when its maize season in Nigeria, it is so cheap and when it now becomes off season it becomes too expensive. But this is not so in other parts of the world where you have commodity exchange boards. What operates is the cobweb theory, which is supposed to help you maintain the equilibrium. How can you now run an economy without commodity boards? In other parts of the world, we have institutes of export and institutions developing the manager of tomorrow, but here we don’t have such. That is what we are saying. If you approach a bank for loan, you are producing and you don’t even know the raw materials required, you don’t know the equipment, you don’t even know the market, you are doomed to failure. But of what importance is the export market to national growth? It is trite to say that the export is paramount to the development of the economy. Nigeria is too big as a nation to stand on one leg, which is being a mono-economy relying just on oil. We are not even refining the quantity we require, the oil is killing the economy because other values are not being developed and all that. We export crude and bring back raw materials; we are not looking at solid minerals, which alone contribute over 30 percent to South Africa’s GDP. In Nigeria, it is less than 0.04percent. This is not good enough because the export market is one big goldmine we can tap from to grow the economy. There is a rising wave of fake export agents. What is NACCIMA doing to protect its members? First of all, let me stress that NACCIMA doesn’t have the power to arrest or prosecute offenders. That is the role of the government agencies and others. Let me ask you, have you travelled outside our borders? How many uniformed men do you see on the road? But to answer your question, we are compiling the lists of importers and exporters to enable us develop a register of those in the sector. That way, we can easily sieve the grain from the chaff. But in a society where things are not put in the right perspectives, there are bound to be problems. If you talk of fake, you talk of substandard products in Nigeria, do you know them? Are they registered? Are they members of the private sector? Can you open this door today and say you are a medical doctor without requisite professional certificates? Can you call yourself an accountant? It is impossible. But fake things and others will continue if things are not put in the right place.

  • US says German export dependence hurts global economy

    US says German export dependence hurts global economy

    The United States reprimanded Germany on Wednesday, saying its exporting prowess was hampering economic stability in Europe and hurting the global economy.

    The Obama administration has long called for countries with trade surpluses, such as Germany and China, to do more to spur domestic demand. But in a semiannual report to Congress on international economic policies, the criticism of Germany stood out for its stark language and prominent placement.

    “Germany’s anemic pace of domestic demand growth and dependence on exports have hampered” efforts to make the euro zone economy more stable, the Treasury said in the report.

    “The net result has been a deflationary bias for the euro area, as well as for the world economy.”

    Petr Zemcik, director of European economics at Moody’s Analytics, says the German economy is doing really well despite a dip in exports and the strong euro.

    Deflation is a persistent drop in wages and prices that can create a self-feeding cycle of economic weakness.

    The criticism comes at tricky juncture in relations between Washington and Berlin. German envoys met the White House national security adviser in Washington on Wednesday following reports the United States monitored German Chancellor Angela Merkel’s cellphone.

    Economists say stronger domestic demand in Germany would suck in more goods from countries on the southern rim of the euro zone, which continue to suffer from an economic crisis.

    However, the Treasury also noted that the recent appreciation of the yuan was “good for the U.S. economy” and called on China to allow the currency to rise more quickly.

    The Treasury also said it was closely following Japanese economic policies to determine whether they are geared toward boosting domestic demand.

    Culled from New York Times

  • Experts task local producers on export

    Experts task local producers on export

    There is a huge potential for local manufacturers in the export market within the West African sub-region, experts have said.

    This was the submission of a cross-section of experts who spoke at a one-day workshop organised by the Nigerian Export Promotion Council (NEPC) in Lagos recently.

    Tagged: ‘NEPC-USAID/NEXTT Trade Show Preparation Workshop’, it drew participants from local produce merchants, fast moving consumer goods producers and allied businesses, public functionaries among other stakeholders.

    In his remarks, the Acting Executive Director/Chief Executive, NEPC, Mr. A.M. Lawal said in line with the mandate setting up the NEPC, the agency remains committed to growing the export market for existing and prospective local players.

    The NEPC boss who was represented by Mr. Iranloye Matthew, Deputy Director, Market Development Department, noted that as a government parastatal, the NEPC has been spearheading the creation of appropriate export incentives to promote the implementation of export policies and programmes of the Federal Government.

    Expatiating, he said, for companies who desire to create awareness about their products, trade fairs and exhibitions provide ample opportunity to do so at relatively less cost.

    Speaking earlier, Mrs. Evelyn Obidike, Acting Zonal Controller Coordinator, NEPC, Lagos, in her welcome address, said the workshop was designed to build the skills set of existing and prospective exporters desirous of getting into the export market.

    Besides, she said the interface and discussion session was geared towards showcasing Nigerian products in a positive light preparatory to the forthcoming 7th ECOWAS trade fair scheduled to take place in Accra, Ghana.

    The keynote speaker, Mr. Akin Aluko, who gave fresh insight on the potential of the export market, especially within the West African sub-region, urged prospective exporters to set their priorities right in order to maximise the benefits export sub-sector of the economy.

    While giving suggestions on how to operate in the sector, Aluko, who is a Business Development Specialist, said each trade fair has its own peculiarities, as such, potential exporters should be readily guided.

    There is need for a prospective exporter to have a market information checklist, he said.

    “The importance of the awareness of the market access – the tariffs and quotas, internal taxes, health and safety regulations, the market potentials; the consumption, the imports, identification of market segment and market outlook for products are germane,” he stressed.

    Echoing similar sentiments, Mr. Kola Awe, Managing Director, XPT Logistics, Lagos, said there is need for prospective exporters to understand the logistics involved in the export market, as this can mar or make the business on the long run.

     

  • Shell lifts force majeure on Bonny Light exports

    Shell lifts force majeure on Bonny Light exports

    Shell Petroleum Development Company of Nigeria has lifted the force majeure, or suspension on Bonny Light exports, following the repair of recent spill points on the Trans Niger Pipeline (TNP), its spokesman, Precious Okolobo has said.

    Okolobo, in a statement, said the company declared force majeure on October 10 as a result of production deferment from the spills that were recorded on the 24-inch line of the Trans Niger Pipeline at B-Dere and Nonwa-Tai.

    The statement said: ‘’Production was switched to the 28-inch line of the TNP, which was also briefly shut for repair following a fire at Patrick Waterside, Bodo and reopened on October 16. Repair of the 24-inch line is progressing and it remains shut in,

    “Joint investigation of the spills has now been completed, coupled with reports from stakeholders including representatives of the Ministry of Finance, Shell Petroleum Development Company, security agencies and communities. While the spill at B-Dere came from a hole drilled by unknown persons,it was confirmed that pipeline failure was responsible for the incident at Nonwa-Tai. About 2,200 barrels of oil were spilled, of which more than 1,500 barrels have since been recovered.”

  • Agric products, others top half year containerised export

    Agricultural produce,such as cocoa, sesame, cashew nuts, cotton and charcoal took a chunk of containerised commodities exported from Nigeria in the first half of this year.

    According to a trade report by Maersk Nigeria Limited, the volume of charcoal export rose by 76 per cent as of May, this year compared to the same period last year because of the longer winter in Europe.

    The report said finished produce export in May recorded 39 per cent year-on-year growth because of the streamlining of production activities by major manufacturing firms that made Nigeria their main production hub for the region.

    However, the finished produce export share still remains low from Nigeria, said the Managing Director of Maersk Nigeria Limited and Head, Central West Africa Cluster, Mr. Jan Thorhauge.

    He said as of May, this year, the containerised import market to Nigeria was estimated to have ended 159,000 FFE (40-foot equivalent units) compared with the same period last year, which produced an estimated volume of 155,000 FFE representing a relatively marginal year on year growth of about two percent.

    Thorhauge noted that the East Nigerian market maintained its superior performance over the West in terms of growth in volume ratio with a yearly growth ratio of 10 per cent on import and one percent on export.

    He said: “Not much has changed as the containerised market in Nigeria continues to be strongly dominated by imports, and for the last six years, the import/export ratio has remained at around 92 per cent import as against eight percent export.”

    Thorhauge said most of the country’s containerised cargoe came from the Far East, mostly China, while most of its export commodities went to Europe.

    He said: “The sourcing patterns have not changed fundamentally in the last six years, though imports from Europe and Middle East have experienced significant increase in the last two years.

    “Major products coming from the Middle East are industrial raw materials, chemicals, electronics, iron and steel and tyres while from Europe, major products include industrial raw materials, frozen fish and cars.”

     

     

     

     

     

     

     

    The increased sourcing pattern can be attributed to better pricing from these regions, increase in the age limits of imported automobiles from five years to 10 years, increased construction as well as growing demands for finished products by the Nigerian populace, he said.

    He went on further to say that Nigeria’s export ratio can be improved upon if the government would be able to improve on infrastructure such as power supply, road network and rail services.

    The dominant items imported into the country, according to the report, have remained the same over the past six years and are made up of traditional commodities including cars, electronics, construction materials, food items, chemicals, electrical fittings, machinery and paper, among other goods covering industrial as well as private needs.

    He said: “We are quite optimistic that the import market in Nigeria will grow by about 6-8 percent for the second half of 2013. The export market is subject to harvest conditions and global market prices, but we foresee an increase of about eight percent for the rest of the year.

    “Forecasting in general in Nigeria remains a challenge and 2013 is no different. The market development will as always depend heavily on unpredictable macro-economic factors as well as stable oil prices and oil production, security issues in Northern Nigeria, relative peace in Eastern Nigeria, government policies, exchange rate fluctuations for the naira, among others.

    He said that most of the terminals in Nigeria have made major investments in the early parts of the year 2013 in terms of infrastructure, container handling equipment and terminal management software stating that these investments, along with the dampened market, have resulted in reduction in Port congestion.

    “APMT Apapa has in early 2013 initiated the final phase of their expansion plans, and both TICT and Ports and Cargo Handling Services are today operating almost entirely with RTG’s (rubber tired gantry cranes) which has dramatically increased the yard capacity. The average dwell time days (the time spent between a container being discharged and leaving the terminal) has also gone down by around 40 per cent.

    “Irrespective of these improvements, it is expected that the terminal capacity in Lagos ports will be fully utilized within the next 4-5 years, and it is essential that steps are taken to find new terminal capacity in order to keep up with Nigeria’s economic growth. Poor road infrastructure outside the terminals and lacking rail services also remain a concern,” he added.

     

  • Toxic export

    Toxic export

    •Nigerian judge fired in Gambia for alleged bribe taking 

    Nigerian, Justice Joseph Wowo, who was serving as the acting Chief Justice in the Republic of Gambia, has been sacked for allegedly asking for bribe from one Mr. Andre Klaarbergen, a litigant. According to reports, a video of the dishonourable conduct has been posted on the Youtube; and the sacked judge was reported to have fled from Gambia. Also sacked was the Gambian justice minister, Lamin Jobarteh, who allegedly helped to negotiate down the bribe, after the judge had initially asked for the equivalent of about N12million.

    The Nigerian judge joined the Gambian High Court in 2007 and rose to become President of the Court of Appeal, from where he was appointed acting Chief Justice of Gambia.

    Justice Wowo’s alleged condemnable conduct is in contradistinction from the stellar performances of other Nigerian justices who had served meritoriously in foreign jurisdictions over the years. We have Justice Emmanuel Ayoola, who was seconded from the Oyo State judiciary to serve at the Court of Appeal in Gambia, and later as the Chief Justice of Gambia before returning to serve later in the Nigerian Supreme Court; also, Justice Godwin Okechukwu Ihekire who was seconded from the Imo State judiciary and served in the Court of Appeal, Gambia and later the Supreme Court of Gambia. There was also Justice Akomaye Emmanuel Agim, the predecessor to the disgraced Justice Wowo.

    We had Justice Akinola Aguda who served as the Chief Justice of Botswana, and a host of other credible judges who have proved a veritable export from the Nigerian legal system. So, why Justice Wowo who was called to the Nigerian Bar in 1991, and who chose to start a career in the Gambia, will turn a black sheep, by his alleged conduct, is worrisome. Could it be that the cankerworm of corruption that has eaten deep into the present Nigerian judiciary has also been exported to their contemporaries serving abroad?

    Could it also be as a result of the breakdown in the moral fabrics of the younger generation, or that the parameters for determining success in the present times have negatively changed? Whatever was the motive or the drive for the embarrassing conduct, the consequences of Justice Wowo’s alleged misconduct will further affect the international perception of our country, which image is already viewed as steeped in corruption.

    Since Justice Wowo was not seconded to Gambia from the Nigerian judiciary like most of his eminent predecessors, it may be tricky for the National Judicial Council to rein in his judicial career, assuming he can still make something out of it, after his sack in Gambia. It may however be necessary for the Nigerian judiciary to watch out, to ensure that he does not move over to Nigeria to continue with his trade. Justice Wowo, as stated by the reports, had previously been sacked as President of the Court of Appeal, and earlier this year, was arrested and charged before a Magistrate’s Court in Gambia, for giving false information that led to the arrest of a lawyer, but was later discharged, and restored to his position.

    To counter the damage done to Nigeria’s image, it may also be necessary for us to engage in diplomacy to reassure that country of about 1.7million people, who have over the years relied on Nigeria and other neighbouring countries for manpower, especially in the judiciary. Such move may be necessary to avoid a backlash for our other distinguished compatriots who are still serving that country meritoriously; and even for those whose service may be in demand in the future.

  • Export Promotion Council for solo exhibition in Togo

    Nigerian manufacturers have been invited by the Republic of Togo for a solo exhibition of Nigeria’s manufactured goods.
    Speaking during a press briefing in Lagos, the Director Trade Information Department of the Nigerian Export Promotion Council  (NEPC), who represented Mr. Aliyu Lawal, the Executive Director/ CEO of NEPC, David Adulugba, said the exhibition would come up in Lome, Togo’s capital city, between July 27 and August 10, 2013.
    According to him,  the invitation of Nigeria for the solo trade exhibition in Lome was facilitated by the splendid performance of the manufactured goods from Nigeria during the 10th Lome International Trade fair in December 2012 in Lome.
    “NEPC took the decision to organise the exhibition to boost the penetration and acceptance of Nigerian products in the entire ECOWAS, after her participation in the 10th Lome International Trade fair, December 2012, where the Nigerian Ambassador to Togo, Amabassador Sunday Adoli, reasoned that the Republic of Togo would make a perfect trade hub for the distribution of Nigerian manufactured goods with ECOWAS countries,” Lawal said.
    The director Trade Information revealed that despite the ECOWAS Trade Liberalisation Scheme and the principle of free trade movement of persons among member-states,  the level of trade among member-states within the region is insignificant.
    He said that despite Nigeria’s presence in many West African countries, “It has not been able to penetrate Francophone countries because they mostly import from France. He therefore said that “the timely decision to stage the exhibition became more imperative considering the strategic location to Togo. More so, the event would assist to curb the large spate of informal trade between the two countries.”
    Lawal said the planned solo exhibition is an important window towards making non- oil a significant contributor to the Nigerian GDP.
    Speaking at the occasion, the Director-General of NACCIMA,  Dr. John Isemede, took time to explain to the would-be participants what would be required of them during the exhibition. He reiterated that the best of the Nigerian  goods would be taken to the event.
    The National Vice President, Nigerian Association of Chambers of Commerce,  Mines and Agriculture, Iyalode Alaba Lawson, took time to mobilise women for the solo exhibition, urging them to be part of the event in Lome, Togo.

  • Nigeria seeks $40million loan for cassava chips export

    Nigeria seeks $40million loan for cassava chips export

    The Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina, has disclosed plans to secure $40million loan from the African Export and Import Bank in Egypt.

    The Minister said that the facility is to meet 3million metric tons export demand of cassava chips to China.

    Adesina disclosed this at the weekend in Abuja.

    He added that the Chinese government had requested for an export order of 3million metric tons of cassava chips.

    He stated that the cassava available in the country cannot meet the demand, which necessitates government to seek external credit facility for the production of the commodity.

    According to the Minister: “Gone are the days when cassava are allowed to lie fallow under the ground without it being harvested.

    “We are making sure we create market for our cassava to the extent that the produce would not be enough to meet the demand”.

    The Bank of Agriculture (BOA) has also provided N4.1billion credit facility for the Nigerian Cassava Growers Association (NCGA).

    The loan will enable 20,000 member farmers to cultivate 60,000 hectares of farmland during the 2013 planting season.

    At the signing of the Memorandum of Understanding (MoU) between the board members of BOA and the members of the NCGA witnessed by Adesina and the Minister of State, Bukar Tijani, the Minister stated that the grant could not have come at a better time when the country is in dire need of cassava to meet export demand.

    Lamenting that Nigeria is not adding enough value to what is being produced, the Minister maintained that the current administration is determined to make the nation not only the largest producer of cassava but also the largest cassava processor in the world.

    After the delivery of 2million metric ton of cassava chip to China in 2012, Adesina revealed that the chips produced in Nigeria have been adjudged the best in the world.

    He disclosed plans to set up six cassava chip processing centres in Enugu, Ibadan, Nassarawa, Taraba, hinting that that the 18 cassava milling machines to mill high quality cassava flour would be available in the country before the end of the year.

    While commending BOA for the provision of the facility, he said it is the responsibility of the government to provide finance and create market for goods produced in the country.

    He further unfolded plans by the federal government to recapitalise the BOA to meet the status of RABO bank, the largest agricultural bank in Nigeria.