Nigeria: NEPC reports a drop in non-oil exports to $4.5

Despite the federal government’s push to diversify the economy through non-oil exports, the Nigerian Export Promotion Council (NEPC) reported a decline in non-oil exports from $4.8 billion in 2022 to $4.5 billion.

The Nigerian Export Promotion Council (NEPC) attributed the decline in non-oil exports to various factors, including rejections, inadequate product certification, political crises in neighboring African countries, exchange rate challenges, and a surge in international trade, among other issues.

The NEPC Chief Executive Officer, Nonye Ayeni, explained that a total of 273 different products were exported in the period under review ranging from manufactured, semi-processed, solid minerals to agricultural commodities, which had a notable increase of approximately 28.04 per cent compared to the preceding year.

“A breakdown of the result shows the following based on information received from pre-shipment inspection agents (PIAs), of the top 20 products exported in the year 2023, urea, cocoa, beans, sesame seed, soya-beans/meal, cashew nuts/kernels, aluminum ingots and hibiscus flower were top of the list,” she said.

The top commodities in terms of total exported products, according to the Nigerian Export Promotion Council (NEPC), were urea/fertilizer, constituting 20.1%, followed by cocoa beans at 13.19%, and sesame seeds at 9.03%.

 “Of the top 20 exporting companies in Nigeria, Indorama, Eleme Fertilizer and Chemical Limited took the lead with $524.33 million in value while Dangote Fertilizer Limited recorded the second-highest value of $383.07 million” she said.

She emphasized that a total of 32 banks were involved in the creation of NXP forms for exports during the year, processing a cumulative 21,390 NXP forms. Zenith Bank Plc led in processing NXP forms, accounting for 39.09%, followed by United Bank of Africa (UBA) Plc at 10.55%, and First Bank of Nigeria Plc at 9.88%.

The head of NEPC urged financial institutions to seize the opportunities in the non-oil export sector. She called on them to support exporters in enhancing their capacity for increased productivity and access to international markets, particularly in light of the implementation of the Africa Continental Free Trade Area (AfCFTA).