Unlocking Nigeria’s economic potentials through non-oil export

Nigeria’s economy, heavily reliant on oil, faces constant fluctuations due to volatile global oil prices. The country must diversify its exports beyond oil to achieve stability and prosperity. Expanding non-oil exports will create jobs, generate additional revenue, and strengthen the economy, reducing its vulnerability to external shocks. This strategic shift is critical to unlocking Nigeria’s full potential and building a more resilient and diversified economy.

Successive governments have tried to diversify the economy from oil by supporting agriculture, mining, manufacturing, technology, and infrastructure. They have also made it easier to do business in Nigeria. While progress has been made, infrastructure deficit and policy inconsistencies still need to be improved, hindering significant diversification.

To surmount these challenges, among others, hindering the diversification of the Nigerian economy, First City Monument Bank (FCMB) hosted a Non-Oil Export Seminar on Thursday, August 22nd 2024. This session brought together industry experts, policymakers, and business leaders to discuss strategies for harnessing the untapped potential within Nigeria’s non-oil sectors. In its sixth edition, titled ‘Refocusing Nigeria’s Economic Development through Non-Oil Export,’ the seminar sought to reshape Nigeria’s economic narrative.

One of the key takeaways from the seminar, and a matter of urgent concern, was the need to diversify Nigeria’s revenue base. The keynote speaker, Nonye Ayeni, MD/CEO of the Nigeria Export Promotion Council (NEPC), further reiterated this. She emphasized the importance of leveraging the country’s vast agricultural resources, solid minerals, and creative industries to reduce dependency on oil exports. By investing in and promoting these sectors, Nigeria can build a more resilient economy capable of withstanding global economic shifts.

In her welcome address, Yemisi Edun, Managing Director of FCMB, said, “By working together to create a stable operating environment, develop essential export infrastructure, champion international trade diplomacy, and secure sustainable funding, we can pave the way for the enduring success of Nigeria’s export sector. As of June 2024, FCMB facilitated over $900 million in export flows and $140 million in remittances.”

The bank’s chief executive also commended the Central Bank of Nigeria, the Nigerian Export Promotion Council (NEPC), the Nigeria Customs Service (NCS), Nigeria Export-Import Bank (NEXIM), the Nigeria Port Authority (NPA), and other stakeholders for their initiatives to boost non-oil exports, ensure forex stability, and support export-oriented companies.

Adewale Adeniyi, Comptroller General of the Nigeria Customs Service, noted that the NCS has implemented several initiatives to enhance export trade. Represented by Assistant Comptroller Olusola Salako, Adeniyi mentioned the creation of the Lilypond Export Command as a one-stop shop for facilitating export cargo, capacity building, system automation, process improvements, and partnerships with international trade stakeholders.

“These initiatives, including the digitization of customs clearance processes, align the NCS with global best practices in customs administration,” he said, adding that non-oil exports are duty- and tax-free in Nigeria, with no associated charges for customs export procedures.

Speaking on “Bridging the Non-Oil Export Financing Gap,” NEXIM Managing Director Abubakar Bello highlighted the Bank’s efforts to promote the Regional Sealink Project. This initiative aims to enhance trade connectivity by improving maritime logistics using inland waterways for coastal and hinterland trade.
“We welcome collaborations with business promoters and financiers to identify and fund viable non-oil projects, particularly in manufacturing, agro-processing, solid minerals, and services,” Bello said. “Nigeria has vast potential to grow non-oil exports and diversify its export revenues.”

In conclusion, Nigeria can break free from its dependence on volatile oil revenues by actively pursuing non-oil exports, creating a diversified and resilient economy. This strategic shift has the potential to unlock numerous benefits, including job creation, increased foreign exchange earnings, rural development, and sustainable growth. By tapping into its vast resources and fostering innovation, Nigeria can pave the way for a more prosperous and secure future for all its citizens.