Market News

By Arinze Nwafor

The Manufacturers Association of Nigeria Export Promotion Group has raised concerns over the challenges plaguing exporters, with key economic indicators continuing to stifle competitiveness.

The Chairman of MANEG, Odiri Erewa-Meggison, told The PUNCH about the export sector’s frustration over inflation, high energy costs, and unfavourable exchange rates, describing them as critical hurdles for manufacturers.

“In recent times, the situation with our members has not experienced any positive changes as it were,” Erewa-Meggison stated. “The key indicators such as inflation rate, exchange rate, monetary policy rate, and energy cost are still unfriendly to business, making it hard for our members to compete globally.”

She highlighted the Central Bank of Nigeria’s recent hike in the Monetary Policy Rate to 26.25 per cent as an additional challenge that limits market competitiveness.

Erewa-Meggison appreciated the government’s introduction of the Guided Trade Initiative under the African Continental Free Trade Area in July 2024 but noted that few manufacturers fully understand the details required for successful exportation under the GTI framework.

“Most manufacturers are yet to be fully abreast with details on how to export under the GTI,” the MANEG chairman remarked, calling for increased training and sensitisation to enable Nigerian exporters to harness the benefits of the AfCFTA.

Erewa-Meggison also addressed the impact of border policies, stating that the recent reopening of the Nigeria-Niger border has offered significant relief for manufacturers who trade across the axis.

However, she flagged logistical obstacles, including multiple checkpoints and high transport costs, which continue to hamper operations.

“The closure of the Nigeria-Niger border impaired our members’ export business to a large extent. The reopening is beneficial, but exporters still face challenges,” she added.

The National Bureau of Statistics’ recent report on Foreign Trade in Goods (Q2 2024) paints a similar picture.

Although Nigeria’s total trade increased by 150.39 per cent year-on-year in the second quarter of 2024 to N31.89tn, non-oil exports contributed a modest N1.94tn or just 10 per cent of total exports.

These figures point to the need for increased government intervention and incentives for non-oil exporters.

The PUNCH reached out to the Nigerian Export Promotion Council, which plays a role in creating an enabling environment for exporters.

The Head of Corporate Communications at NEPC, Ndubueze Okeke, highlighted the council’s efforts in providing export incentives and training initiatives.

“Our mandate is to promote non-oil exports… we have continued to do that by providing export intervention programs and projects,” Okeke stated.

He acknowledged exporters’ concerns and urged business operators to be proactive in seizing available opportunities, pointing to recent developments like the Export Skill Acquisition Centre in Apapa, Lagos State, which the NEPC launched to support manufacturers and individuals with special needs.

He maintained that the NEPC actively advocates for exporters but does not control issues within the port authority or electricity tariffs, saying “Even what goes on inside the ports, it is not our purview… but we can only do advocacy,” Okeke clarified.

Meanwhile, Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office, Olusegun Olutayo, disputed assertions that the GTI has seen minimal utilisation, attributing this to a lack of awareness rather than procedural barriers.

“The assertion that business operators have not fully utilised the Guided Trade Initiative is manifestly not the true position,” Olutayo argued.

He highlighted his office’s ongoing efforts to educate stakeholders on AfCFTA benefits and urged the media and private sector to complement these efforts.

Olutayo cited the AfCFTA Coordination Office’s recent participation in the Manufacturers Association of Nigeria’s annual conference in Ibadan as evidence of its commitment to fostering trade.

He stressed the importance of collaborative support from the Organized Private Sector of Nigeria to realise AfCFTA’s full potential, adding that implementation requires “a meticulous approach.”