The Nation Newspaper

Tag: export

  • ‘Export vital to economy’

    The Executive Director, Nigerian Export Promotion Council (NEPC), Mr David Adulugba, has said export business is critical to the country’s survival.

    He said Nigeria should encourage the exportation to other commodities aside from oil.

    He warned that no nation can survive on consumption, stressing that export business can impact positively on the Gross Domestic Product (GDP) of the country.

    He said most developing countries have repositioned their export sectors for prosperity.

    “It is a proven fact that export business is critical to a nation’s health as it impacts positively on the GDP. This is because it catalyses economic growth; creates a strong base for technological development; encourages economic specialisation; and ultimately high rate of investment.

    “Yet, their products still appear in Nigeria through the ECOWAS Trade Liberation Scheme,’’ he said.

    He said most of the foreign companies used Nigerians for temporary jobs without equipping them with the technical know-how.

    Adulugba noted that Nigeria had relied too much on oil as the main revenue earner, which might not guarantee a prosperous future for the nation’s youths.

    He said the agency had a number of incentives to encourage export business.

    He recalled that in the last 15 years, export products had been getting the necessary support, urging operators to learn to operate, according to international standards.

  • NACCIMA frets over drop in oil export

    NACCIMA frets over drop in oil export

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has said the drop in the oil export to the United States may affect this year’s budget.

    Its Director-General, Joseph Isemede, said the cut in oil export to the US would affect the economic projections which were based on the budget.

    The US, which is Nigeria’s highest importer of the product, reduced its purchases from Nigeria due to its shale gas discovery.

    According to Isemede,the dependence in the oil sector is creating distortion in the manufacturing and agricultural sectors, which are the main engines of an economy.

    “US, which is our main importer is set to cut back; so what do you think will happen to the 2013 Budget, which depends heavily on the oil. Definitely, the budget will be hindered and it may not work.

    “Nigeria is struggling to get buyers for its petroleum product, following sharp drop in interest in the country’s crude oil by refinery operators in Europe.

    “From our findings, traders operating in the oil markets that deal with Nigerian crude recently revealed that about 21 Nigerian crude cargoes (31 per cent of output) were unsold in February. This is alarming and, of course, it is dangerous for the economy,” Isemede added.

    He also said the oil sector has caused substantial decline in agricultural exports, which began in the mid-1960s and continued till date.

    “It was observed that the advent of the oil sector (petrol dollars) assuming a prominent place in contributing to the Gross Domestic Product (GDP) had created a distortion in the manufacturing and agricultural sectors of the economy,” he said.

    He said there is the need to focus more on non-oil exports, adding that a situation where the GDP earnings from manufacturing had stagnated at four per cent was not satisfactory.

    “We need to develop manufacturing non-export. It is the only way to confront unemployment. This can also be done by reviewing the laws against counterfeiting and faking,” he said.

    Isemede emphasised the need for Nigeria to align with the global trend by refocusing and re-strategising through diversification of its economic base away from oil to non-oil products.

     

  • Conoil’s drive to export lubricants gets boost

    Conoil’s drive to export its lubricant brands to the West African countries got a boost with the company’s admission into the Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS).

    Its admission into the scheme, a source from the company said, would afford it the opportunity to export its high grade, made in Nigeria motor engine oils to established markets in the sub-region duty free.

    The scheme was adopted by ECOWAS member states to eliminate trade barriers and facilitate trade integration, improve the foreign exchange earnings of companies of member states and create more jobs in their respective countries.

    The Nigeria Export Promotion Council (NEPC) had earlier certified the quality of Conoil lubricants as export compliant.

    A statement by the company proffered that the ETLS admission qualified Conoil to participate in ECOWAS Export Expansion Grant Scheme (EEG) and enjoy at least 30 per cent rebate on its yearly export earnings.

    Conoil’s foray into the export market came from an exhaustive business research, which revealed a viable market for the company’s brand of engine oils in the sub-region, the statement added.

    Its flagship lubricant brands, Quatro and Golden Super Motor Oil, hold top positions in the Nigerian market and are adjudged the brand of choice. Quatro, the company’s premium grade, which has the American Petroleum Institute’s (API) seal of excellence, has clinched the “Lubricant of the Year” award for several years in Nigeria, the statement said.

    Quatro contains highly refined paraffin base oils and hi-tech additives that ensure minimal fuel consumption and protect car engine from rust while the Golden Super Motor oil on the other hand, has anti-wear/high detergency and oxidation resistance additives that ensure a longer engine lifespan.

    Also available are wide range of industrial lubricants for applications in manufacturing, textile, cement, breweries, oil exploration and producing companies, and transmission oils for the gear system of vehicles.

    The company controls about 30 percent of the nation’s lubricant market and has also committed substantial investments to upgrade and expand its lubricant blending plants at its depots at Apapa, Lagos, Port Harcourt and Kano with a view to meeting and surpassing customers’ ever increasing demand for its quality engine oil.

     

  • NEXIM boosts export with N85b

    The  Export-Import Bank (NEXIM Bank) gave over N85 billion in support of 900 export projects last year, its Managing Director, Roberts Orya, has said.

    In a statement, Orya said, the bank created over 300,000 direct and indirect jobs and would help in generating over $1.2 billion in foreign exchange earnings for the country, substantial part of the money, he added was spent on Small and Medium Scale Enterprises (SMEs).

    Orya said, as an export credit bank of the Federal Government, NEXIM is working hard to rationalise its authorisation of diversification of the  economy through the provision of finance, risk bearing, and policy support to the non-oil export sector.

    He said:  ”Given our efforts to develop the high growth sectors and increase employment generation in the country, we have also developed a funding programme for the creative and entertainment industry in addition to a special scheme for SME exporters in the ECOWAS region.”

    Orya said the bank has also issued guarantees worth $27.3milion to some manufacturers some of whom are engaged in greenfield projects.

    The interventions, Orya added, were in its target sectors with high growth potential of manufacturing, agro-processing, solid minerals and services.

    The NEXIM Bank’s chief said as a result of these operational interventions, the bank was able to generate and sustain direct jobs of over 14,358 last year.

    He commended the shareholders for fresh capital injection as well as other institutional support through supervisory and regulatory over- sight and guidance from the CBN and the Federal Ministry of Finance.

    He urged the government and other  stakeholders to make use of small manufacturing industries to boost exports.