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CBN: Non-oil Exports Generated $1.07BN in Two Months - NEW TELEGRAPH

DECEMBER 07, 2023

Earnings from non-oil exports between June and July amounted to $1.07 billion latest data obtained from the Central Bank of Nigeria (CBN) shows. According to the monthly economic report for July 2023 released by the apex bank last week, the country generated $0.55 billion and $0.52 billion from non-oil exports in June and July respectively. This means that earnings from non-oil exports amounted to $1.07 billion in the two-month period.

The report stated: “Lower export of urea, and some agricultural produce dampened non-oil export receipt. Non-oil export earnings decreased by 5.3 per cent to $0.52 billion, from $0.55 billion in June 2023, driven by the decline in the export of urea, cocoa beans, cashew nuts and sesame seeds in the review period. “Analysis of non-oil export by destination revealed that the United States was the major recipient, with a share of 10.4 per cent, followed by China (8.8%), Brazil (7.2%), Japan (6.1%), and India (4.7%).

The major commodities of export were urea, which accounted for 20.1 per cent, followed by cocoa beans with 9.5 per cent; and cashew nuts, 5.3 per cent. Receipt from the top five (5) exporters of non- oil products was $0.11 billion, compared with $0.09 billion in June 2023.” It further said: “Analysis by share revealed that Indorama Eleme Fertilizer and Outspan Nigeria Ltd. were the top two (2) exporters with shares of 18.2 and 5.4 per cent of the total, from the export of urea and dairy products, respectively.

Metal Recycling Industries Ltd (export of aluminum and copper ingots) and the West African Soy Industries Limited (soya bean seed and oil), were ranked third with 3.4 per cent, apiece. Segilola Resources Operating Limited was fifth, with a share of 3.0 per cent from the export of gold.” On crude oil exports, the report stated that crude oil and gas export receipts fell by 8.9 per cent, to $4.07 billion in July, from $4.47 billion in June 2023, adding that: “This was due to the fall in crude oil production to 1.08mbpd, from 1.25mbpd in June 2023.”

It further said that crude oil and gas accounted for 88.7 per cent of total export in July, while non-oil exports accounted for the balance of 11.3 per cent. In recent years, Nigeria’s fiscal and monetary authorities have intensified efforts to diversify the country’s exports and end its oil dependency. Recently, the former Executive Director/Chief Executive, Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak, disclosed that the country generated $2.54 billion from non-oil exports in the first half of this year, compared to the $2.59 billion recorded in H1’22.

He attributed the marginal decline to the February/March 2023 general election and subsequent transition in government which possibly affected economic activities. The NEPC boss also stated that changes in global economic conditions, including a slowdown in demand or decline in commodity prices impacted negatively on non- oil export performance. He, however, said that he remained optimistic that the Council would still “reach the $5 billion mark we had earlier projected at the beginning of the year.”

He stressed that the non-oil export sector remained the only credible alternative to increasing foreign exchange earnings for the country. New Telegraph reports that following the continuous depreciation of the naira, occasioned by new foreign exchange measures introduced by the CBN in June, a former Minister of Finance, Mr Olusegun Aganga, said at an event, in October, that the only way Nigeria can strengthen the naira is to increase productivity and capacity, and become export-oriented.

Aganga, who was also a former Minister of Industry, Trade and Investment, stated that for Nigeria to achieve 15 percent export to Gross Domestic Product (GDP) ratio, it needs to earn about $72 billion from non-oil exports. As he put it, “Nigeria’s export to GDP ratio is also very low when compared to Malay- sia 76 percent, South Africa 31 percent, China 24 percent and Brazil 12 percent. Nigeria will need to earn about $72 billion from non-oil exports to achieve 15 per cent.” According to him, there is a need to update the Nigeria Industrial Revolution Plan (NIRP), noting that almost all the global exporters, especially Nigeria’s competitors for the African market, now have a new plan.

“China, the largest supplier of imported goods into Nigeria and Africa has already commenced Made in China 2025 plan. South Africa, Morocco and Egypt have been promoting manufacturing and adding value to their exports, particularly in sectors like automotive, agribusiness and chemicals,” he noted.


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