Nigeria’s non-oil export trade suffers 60% decline

Despite promises by the Federal Government that there would be favourable competition between the non-oil and the oil and gas sectors, Nigeria has continued to record huge losses in the non-oil industry.

This has seen the country lose about $1.39billion yearly from non-oil exports between 2014 and 2016, compared with the $3.4 billion it made in 2013.

According to the National Bureau of Statistics (NBS) the worst loss from export trade on goods not related to oil and gas was in 2016, when compared with the records of 2011 and 2012, which recorded the peak with export trade from agro-based produce, including cocoa, hides and skin and charcoal returning over $3.8billion and $3.9billion, respectively.

It was in 2013 that the last impressive record on export trade from the non-oil of $3.4 billion, was made.

The subsequent years came with a decline that got to its worst in 2016, due to what NBS described as “down turn of the economy.”

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“The non-oil trade decline started in 2015 and was yet to recover when the following year, 2016, capped the reduction with over 60 per cent minus from the previous records”, the statistics office stated.

While NBS is not forthcoming with actual reasons and solutions to the decline, experts have come up with what they consider factors to be watched for better records in coming years.

They contend that for the organised sector, government must spend more time and resources in tinkering with existing policies to improve on export trade.

The Manufacturers Association of Nigeria(MAN), through its president, Dr, Frank Udemba Jacobs, said until a state of emergency is declared on all key sectors of the economy, especially manufacturing and agriculture, no change would come from the no-noil sector.

He said his association had been advising government on the way out, but expressed hope that with the belief that the recession is easing off, a change would be expected that could see noo-oil sector occupy an important position in the economy.

But Mr. Alex Nkemdi, a dealer in cassava export said, “The CBN’s promise to assist exporters of goods from other sectors but oil have easier access to loans is yet to come true.

“Unless you are determined to hold on for a brighter tomorrow, doing food export business in Nigeria is made difficult by government agencies, which turn around to complain of dominance of oil and gas in the economy”, he lamented.

 

 

 

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