Experts Ask Govt To Explore Export Potential Of Services

Economic experts have urged the government to harness the potential of the Nigerian services sector for economic diversification, employment and foreign trade.

The PDF Bridge Programme, in a press statement on Tuesday, noted that less emphasis placed on the services sector in cross-border trade was fast changing across developing countries including Nigeria.

PDF Bridge Programme Manager, Titilola Akindeinde, said the services sector had emerged as the highest contributor to the national output in the last decade and offered great potential to drive the diversification agenda of the government.

She said the sector possessed immense capacity to absorb a large proportion of unemployed youths and help create gender parity in exploiting economic opportunities, adding that it had become imperative for Nigeria to explore and expand its export services.

According to her, developing countries are fast gaining better understanding of the crucial roles of services in economic diversification, growth of other sectors and efficient functioning of the overall economy.

Akindeinde said, “Stakeholders in the Nigerian services sector and non-oil exporters will converge on Thursday, December 3, 2020, for a roundtable.

 “This roundtable themed ‘Analysis of potential of Nigeria’s services sector for economic diversification, employment and foreign trade’ will critically dissect the issues highlighted in the study with a view to developing an action plan that will ensure adequate attention is given to the services export sector.”

PDF Bridge commissioned a study under its predecessor programme to analyse the potential of Nigeria’s Services Sector for Economic Diversification, Employment and Foreign Trade.

The study came up with actionable recommendations that if implemented will help to shape government policies to promote the sector, she added.

According to PDF Bridge Trade Policy Expert, Olumuyiwa Alaba, services now contribute the highest proportion of the overall domestic activities and economic growth moving from less than 30 per cent of Gross Domestic Product (GDP) in the 1990s to 50.79 per cent of the GDP in 2010.

He explained that despite the huge possibility in the sector, it contributes only a little to Nigeria’s basket of external trade.

Alaba said, “This shows that there is the need to translate the huge potential of the services sector to major foreign exchange earner by paying adequate attention to the sector.

“The largely ignored services sector possesses immense capacity to absorb a large proportion of unemployed youths and gender parity in exploiting economic opportunities.

“Both formal and informal trade in services create significant opportunity for inclusive growth and poverty reduction.”

He added that trade in services may also be a significant component of the African Continental Free Trade Area (AfCFTA) when implementation of the agreement commenced.