Nigeria received $2.7 billion in total revenue from non-oil exports in the first half of 2024, according to Nonye Ayeni, executive director and chief executive officer of the Nigerian Export Promotion Council (NEPC).
Ayeni disclosed this information to the media on Wednesday, August 28, 2024, in Abuja at the council’s progress report presentation on the performance of the non-oil sector for the first half of 2024.
She pointed out that the amount was 6.26 percent higher than the $2.53 billion made during the same period in 2023.
Ayeni gave credit for the expansion to: “The successful transition of government in May 2023 which brought about stability in the government, increase in demand for Made-in-Nigeria products and initiatives embarked on at the council…to reawaken the consciousness of Nigerians on the need to imbibe an export culture.”
According to her, the increase in non-oil export earnings highlights the continuous efforts to expand the non-oil sector and wean the nation off of its monocultural reliance on oil. These efforts are in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda and the Hon. Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite’s Industrial Revitalisation Plan (GCFR).
Speaking on some of the council’s initiatives, Ayeni mentioned that the group now has a catchphrase: “Operation Double Your Exports” with the core objective of “significantly increasing our non-oil exports to improve our foreign exchange earnings and for economic growth and job creation.”
She mentioned other programs as well, such as “Export 35 Redefined,” wherein the Council has chosen the top 20 agricultural products to concentrate on from the farm gate to market access, with NEPC CONNECT—the council’s result-driven customer service team—facilitating communication between exporters and the Council throughout the entire value chain.
Ayeni broke down the product profile and market reach, stating that 211 distinct products were exported during this time, with the top 3 products being cocoa beans, urea/fertilizer, and sesame seeds, which accounted for 23.18 percent, 13.786 percent, and 11.04 percent of all non-oil exports during this time.
She pointed out that this is a sign of: “A shift from traditional agricultural commodities to more semi-processed and manufactured goods.”
The total amount of goods exported was 3,834,333.83 metric tonnes, which confirmed, in her words: “The widely held assertion that the non-oil sector holds the key to the revitalization of the country’s economy.”
Nigeria exported goods other than oil to 122 nations in Africa, the Americas, Asia, Europe, and Oceania. Based on value, the top three destinations were the Netherlands, Malaysia, and Brazil; Ghana was the only African nation to rank in the top 15 global importers from Nigeria.
Nigerian exporters used 19 exit points, which included land borders, international airports, and seaports, to access markets throughout the world. Over 95% of all non-oil exports during the time under review came from the South-West and South-South, with seaports handling 95.08% of the overall exports.
In her speech available to BrandSpur business and economy news, Ayeni emphasised the role played by Nigerian manufacturing companies, pointing out that the top three are Outspan Nigeria Limited ($77.75 million), Starlink Global and Ideal Limited ($184.7 million), and Indorama-Eleme Fertiliser and Chemical Limited ($98.8 million).
She also named Metal Recycling Industries Limited and Dangote Fertiliser Limited as two other noteworthy contributors.
In H1 2024, thirty-two banks made contributions to non-oil export transactions. In terms of financial assistance to the non-oil export industry, Zenith Bank Plc held a dominant position.
43.09 percent of all Non-Oil Export Proceeds (NXPs) were handled by the bank. Following it were Fidelity Bank and First Bank Nigeria Plc, which handled 6.38 percent and 6.56% of Non-Oil Export Proceeds (NXPs), respectively.
In her closing remarks, she urged Nigerian banks to help exporters reach a global market by taking advantage of the non-oil export industry’s potential, especially in light of the African Continental Free Trade Area (AfCFTA).
