NEPC Completes Disbursement Of N308bn Promissory Notes To Companies As Non-Oil Exports Hit $2.539bn

…Says $5bn Non-Oil Export Target By December Achievable

Between January and June this year, Nigeria earned the sum of $2.539bn through the export of non-oil products, statistics issued by the Nigerian Export Promotion Council have revealed.

The NEPC Executive Director/Chief Executive Officer, Dr Ezra Yakusak revealed the figure during a media briefing on the performance of the non-oil sector in the first half of this year.

He said that 3,944,344.17 metric tonnes of products worth $2.539bn were exported in the first half of 2023, adding that this is against the sum of $2.593bn for the corresponding period of 2022.

From these figures, Yakusak said that the amount represents a slight decrease of 0.09 per cent.

He gave the reasons for this slight decrease to the general election that was held in February/March 2023 and subsequent transition in Government which might have likely affected economic activities.

The NEPC Boss also added that changes in global economic conditions, such as slowdown in global demand or a decline in commodity prices which may have negatively impacted non-oil export performance

According to him, a total of 224 different products were exported in the period under review ranging from manufactured, semi-processed, solid minerals to agricultural commodities.

A breakdown of the non-oil export performance showed that of the top-15 products exported in the first half-year of 2023, Urea, Cocoa Beans, Cashew Nut/kernels, Sesame Seed, and Soya Beans/meal were top on the list respectively.

A total of 1,058,791.27 metric tonnes of products worth $175.476m which amounts to 6.91 per cent of the total export value were exported to 13 ECOWAS Countries.

Similarly, 859 companies participated in the non-oil export trade in the period under review.

Yakusak said, “It is worthy to note that Indorama-Eleme Fertilizer and Chemical Limited took the lead with $282,553,286.15 million in value terms while Dangote Fertilizer Limited recorded the second-highest value of $199,871,962.29 respectively

“Thirty banks participated in the issuance of the Nigeria Export Proceed Forms (NXPs) for the first half-year of 2023 with Zenith Bank PLC processing the highest NXPs value at 38.11 per cent, while United Bank of Africa (UBA) Plc and First Bank of Nigeria had 10.50 per cent and 9.87 per cent respectively.

“Eighteen Exit Points were used in the period under review. These include seaports, international airports and land borders. The seaports however accounted for over 90 per cent of the total non-oil export in the period under review.

“May I reiterate at this juncture that the volume of inter-African trade is still very low. This is glaring considering the fact that no African country made it to the top 15 importers of Nigerian products.

“In summary, 164, 748.75 metric tonnes of products valued at $55.085 million were exported to various African countries. This amounts to 2.17 per cent of the total export value recorded between January to June 2023.

“You will agree with me that this is quite insignificant compared to products valued at $252,056,554.18 imported by Vietnam alone, which constitute 9.93 per cent of the total export value recorded within the same period.

“We strongly believe that the implementation of the Africa Continental Free Trade Area (AfCFTA) and it’s attendant benefits will greatly increase the volume and value of trade among African countries.”

He said with the $2.539bn earned during the period, the $5bn target of the NEPC by December this year would be achieved.

On the destination of exported products, he said 110 countries, spread among five continents of the world, imported Nigerian products during the period under review. The top five importing countries are Vietnam, China, Japan, Brazil, and India.

In line with the NEPC mandate and as part of a collaborative effort to strengthen the value-addition campaign of the Council, he said the NEPC, under its Export Development Programme for priority products, has concluded plans for the establishment of a Cashew Processing Plant in Ogbomosho, Oyo State on a Public Private Partnership arrangement.

This, he added, is predicated on the fact that Ogbomosho cashew is globally acknowledged as a brand for good quality and thereby highly sought after in the international market.

“We have since commenced processes towards setting up the processing plant,” he added.

On the inclusion of Export Promotion in Nigerian Universities Curriculum, he said a Memorandum of Understanding (MoU) will soon be signed between the NEPC and National Universities Commission.

With over 200 universities in the country, Yakusak said the course when introduced would go a long way in making undergraduates employers of labour and self-reliant even after graduation.

“This initiative will further complement the efforts of NEPC at promoting the Export4Survival Campaign which is targeted at increasing the export of Nigeria’s non-oil products,” he added.

In pursuant to the Council’s commitment to ensuring the visibility and easy access of Nigerian products in international markets via the Export Trade House (ETH) initiative, he said an Export Trade House was launched in Hunan Province, China in on 19th April 2023.

This is part of the NEPC effort to increase the export of Made-in-Nigerian products in China.

He added, “The establishment of the ETH is a collaborative effort between the NEPC and Zeenab Foods Limited under a Public-Private-Partnership arrangement.

“With the opening of the China ETH, the Council has now launched and operationalized a total number of four ETHS which are located in Cairo, Egypt, Lome in Togo, Nairobi in Kenya, and China. Plans are underway to establish another ETH in Dubai, United Arab Emirates (UAE).”

On the disbursement of N308.45bn Promissory Notes to Exporting Companies, he said following the approval of the Federal Government, the disbursement to 199 exporting companies under the Export Expansion Grant (EEG) Scheme has since been completed in the period under review.