During the first half (H1) of 2024, Nigeria saw a significant increase in Revenue from its non-oil Export sector, amounting to $2.7 billion. This achievement underscores the country’s commitment to economic diversification, as revealed by the Nigerian Export Promotion Council (NEPC). Nonye Ayeni, the Executive Director of NEPC, highlighted these impressive results during a presentation on Nigeria’s non-oil export performance in Abuja. The revenue has surged by 6.26 percent from the $2.53 billion reported in 2023, indicating Nigeria’s gradual move away from oil dependence, as highlighted by Ayeni.
She emphasized the positive outcomes of their focused work to grow Nigeria’s non-oil exports within a short span of six months. The success of government strategies and programs in enhancing non-oil export capabilities was emphasized. The report noted a notable increase in the variety of goods being exported. A total of 211 distinct products were shipped out in the initial six months of 2024, indicating a wider range of exports from Nigeria. The move towards semi-processed and manufactured goods marks a significant departure from reliance on traditional agricultural commodities.
Nigeria has been working effectively to broaden its export range.
Cocoa beans spearheaded the movement, making up 23.18% of non-oil exports, with urea/fertilizer and Sesame seeds close behind at 13.78% and 11.04%. Ayeni highlighted the importance of these up-and-coming products in Nigeria’s efforts to broaden its export range despite their current market share being under development. She emphasized the increasing importance of emerging export items like fresh produce, citrus peel, and sorghum, which are becoming more popular in international markets. She mentioned that these goods reflect Nigeria’s ability to fulfil global needs, encourage Eco-friendly farming methods, and enhance product value.
Speaking further, Ayeni highlighted the standout performers in the export industry, with Indorama-Eleme Fertilizer and Chemical Limited taking the lead by exporting $198.8 million worth of goods. Starlink Global and Ideal Limited came in next with $184.7 million, while Outspan Nigeria Limited shipped out $177.75 million worth of cocoa. Dangote Fertilizer Limited and Metal Recycling Industries Limited also made notable contributions, showcasing the range of industries thriving in Nigeria’s non-oil export sector.
Several financial institutions support the sector’s growth.
Zenith Bank Plc was essential in providing financial backing, managing 43.09% of the overall Non-Oil Export Proceeds (NXPs). First Bank Nigeria Plc and Fidelity Bank together contribute significantly to the total transactions, with First Bank at 6.56% and Fidelity Bank at 6.38%. Ayeni emphasised the need for financial institutions to seize opportunities in the sector, especially with the potential benefits of the African Continental Free Trade Area (AfCFTA). Enhancing exporters’ capabilities and improving their access to global markets were highlighted as crucial factors for success.
According to the NEPC report, Nigerian non-oil products reached 122 countries across Africa, Asia, Europe, the Americas, and Oceania. Also, the Netherlands, Malaysia, and Brazil emerged as the leading importers of Nigerian goods. Ghana was the sole African nation to make it into the top 15 global importers of Nigerian products, coming in at 14th place. In Africa, Nigerian products worth $156.117 million were imported by 14 ECOWAS member countries, making up 5.79 percent of the overall export value. The vast majority of these exports, approximately 95.08 percent, passed through Nigeria’s seaports, while the remainder was split between international airports and land borders for distribution.
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Ayeni emphasised NEPC’s dedication to working closely with key partners to enhance the expansion of the industry. They aim to elevate the sector to play a substantial role in boosting Nigeria’s GDP, enhancing foreign exchange revenue, and promoting long-term economic development. The NEPC remains committed to backing projects that enhance Nigeria’s non-oil exports, acknowledging their importance in driving Economic Stability and development. With a focus on maximising the value of a variety of products and expanding into new global markets, Nigeria is harnessing the power of its non-oil exports.