Nigeria’s non-oil export sector recorded a remarkable achievement in the first half of 2024, generating an impressive $2.7 billion in revenue.
This figure, which marks a 6.26% increase compared to the $2.539 billion earned during the same period in 2023, underlines the country’s ongoing efforts to diversify its economy away from oil dependency. The progress was detailed by Nonye Ayeni, the Executive Director of the Nigerian Export Promotion Council (NEPC), during a progress report presentation on Nigeria’s non-oil export performance in Abuja.
Key Drivers of Growth
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Ayeni attributed this robust growth to several key factors, notably the smooth transition of government in May 2023 and the subsequent policy advancements under President Bola Tinubu’s Renewed Hope agenda. The President’s focus on revitalizing the non-oil sector has provided a stable environment for export activities to flourish.
Additionally, the NEPC’s “Operation Double Your Exports” initiative has played a crucial role in boosting export performance. This initiative has emphasized partnerships, advocacy, capacity building, and export intervention programs, all of which have contributed to the sector’s success.
“In just six months, we have seen tangible results from our concerted efforts to expand Nigeria’s non-oil export base,” Ayeni stated. “The increase in both the volume and value of exported products is a testament to the effectiveness of these policies and initiatives.”
Diversification and Market Expansion
A significant highlight of the report was the diversification of Nigeria’s export products and the broadening of its market reach. During the first half of 2024, a total of 211 different products were exported from Nigeria, reflecting a shift from traditional agricultural commodities to more semi-processed and manufactured goods. Cocoa beans remained the leading export product, accounting for 23.18% of the total non-oil exports. This was followed by urea/fertilizer and sesame seeds, which contributed 13.78% and 11.04%, respectively.
Notably, there has been a growing prominence of newer export products such as fresh vegetables, citrus peel, and sorghum. Although these emerging products still occupy a smaller market share, they represent the ongoing diversification and broadening of Nigeria’s export portfolio.
“These emerging products, though still developing in market share, reflect the diversification and broadening of Nigeria’s export portfolio,” Ayeni noted, emphasizing the importance of innovation and adaptation in the export sector.
Indorama-Eleme Fertilizer and Chemical Limited led the pack of the top 20 exporting companies, with $198.8 million. Starlink Global and Ideal Limited followed closely with $184.7 million, while Outspan Nigeria Limited exported $177.75 million worth of cocoa. Other significant contributors included Dangote Fertilizer Limited and Metal Recycling Industries Limited, showcasing the strong performance of both established and emerging players in the non-oil export sector.
On the financial front, Zenith Bank Plc emerged as the dominant player, handling 43.09% of the total Non-Oil Export Proceeds (NXPs). First Bank Nigeria Plc and Fidelity Bank followed with 6.56% and 6.38%, respectively.
Ayeni urged more financial institutions to capitalize on the opportunities within the non-oil export sector, especially in the context of the African Continental Free Trade Area (AfCFTA), which presents a significant opportunity to enhance exporters’ capacity and access to international markets.
Expanding Global Reach
Nigeria’s non-oil products are being exported to 122 countries across Africa, the Americas, Asia, Europe, and Oceania, highlighting the global demand for Nigerian goods. The top three importing countries were the Netherlands, Malaysia, and Brazil. Interestingly, Ghana was the only African country to feature in the top 15 global importers of Nigerian products, occupying the 14th position.
Within the African continent, 14 ECOWAS member countries imported Nigerian products worth $156.117 million, accounting for 5.79% of the total export value. The majority of these exports, 95.08%, were routed through Nigeria’s seaports, with the remainder distributed via international airports and land borders.
The non-oil export sector is expected to play an increasingly vital role in driving economic growth, amid Nigeria’s efforts to diversify its economy. Ayeni emphasized the NEPC’s commitment to working with critical stakeholders to address export challenges and stimulate further growth.
The NEPC is focusing on product diversification, capacity building, and market expansion, in addition to strong financial support from leading banks, to set the stage for sustained growth in the coming years.