Post by Trade facilitator on Apr 30, 2023 11:14:42 GMT 1
Non-Oil Exports: Stakeholders Advise Incoming Government To Critically Look At Export Processing Zones And Export Of Services
What the incoming government is expected to do!
This is the current state of debt the Federal Government is faced with dwindling oil revenue:
- According to reports, Nigeria owes $6.29 billion to the International Development Association (IDA) and $3.57 billion to the International Bank for Reconstruction and Development (IBRD) as of 2016, but by 2022, IDA's debt to Nigeria would be $13.45 billion and IBRD's would be $487.03 million.
The World Bank has warned that Nigeria's debt, while perhaps manageable for the time being, is risky and expensive; especially due to large and growing financing from the Central Bank of Nigeria.
According to information obtained from reliable sources, Nigeria's overall debt to the World Bank Group increased by $7.64 billion (or N3.52 trillion, using the Central Bank of Nigeria's exchange rate, which was N460.53 per dollar as of April 23, 2023; over a period of seven years.
According to information from the Debt Management Office's external debt stock reports, the country's debt to the World Bank increased from $6.29 billion (N2.9 trillion) in December 2015 to $13.93 billion (N6.42 trillion) in December 2022.
Nigeria has received loans from the World Bank's International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) over the years.
Provision Of Export Processing Zones All Over The Country:
The Export Processing Terminals (EPTs) will seek to address quality concerns over Nigeria’s exports through the timely processing of export and onward delivery to the port. In the past, exports from Nigeria arriving at destination ports were rejected because they have either expired or halved their shelf-life because of longer waiting time to access the port and longer time spent on sea-going vessels. Exporters lose about N700m worth of exports annually due to rejection.
There is no state in Nigeria that does not have one or two commodities or solid minerals to export.
While advising the incoming government to address all the barriers identified that have been militating against the success of non-oil exports in Nigeria, the stakeholders however emphasized the need to focus more on exports of services as well as utilize the opportunities provided by AfCFTA and the introduction of export processing zones reforms.
“A lot more can be done to expand the scope of services export in Nigeria”, said Muda Yusuf, CPPE DG.
“The service sector accounts for over 50 per cent of our Gross Domestic Product, (GDP). There are enormous opportunities in services export. Already we have remarkable footprints in many African countries and even globally in Financial Services, ICT, Telecoms, Sports, Music, Spiritual Services, Transportation, Entertainment, Fashion, Hospitality etc.”, he added.
Tunde Abioye, FBNQuest also said: “The services account has historically run on a deficit. This has not received a lot of attention by the media. However, a lot is required to promote the export of services.
"Nigeria could come up with a plan to gain comparative advantage in services such as IT, education, health, tourism etc. Countries like India (IT), Mauritius (financial services), and Egypt (tourism) have succeeded in achieving this.”
Strategic Reforms Required For Non-Oil Exports In Nigeria
“The incoming government should make some strategic reforms for Non-Oil Exports development”, said Sylvester Anaba, Team Lead, and Research. Elaborating, he said: “The new government should develop agricultural various value chains, especially incorporating the agro-processing industry.
“The new government should utilize the opportunities provided by AfCFTA. Currently, Africa accounts for only 9.9% of Nigeria’s exports.
“The issue of infrastructure deficit should be addressed; good road networks, ports systems, storage facilities, and improved electricity supply will boost Non-Oil Exports. Export processing zone reforms will greatly improve non-oil exports.”
Addendum:
Our company is one of the best companies in the Agro-Export business in Nigeria today. We train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
What the incoming government is expected to do!
This is the current state of debt the Federal Government is faced with dwindling oil revenue:
- According to reports, Nigeria owes $6.29 billion to the International Development Association (IDA) and $3.57 billion to the International Bank for Reconstruction and Development (IBRD) as of 2016, but by 2022, IDA's debt to Nigeria would be $13.45 billion and IBRD's would be $487.03 million.
The World Bank has warned that Nigeria's debt, while perhaps manageable for the time being, is risky and expensive; especially due to large and growing financing from the Central Bank of Nigeria.
According to information obtained from reliable sources, Nigeria's overall debt to the World Bank Group increased by $7.64 billion (or N3.52 trillion, using the Central Bank of Nigeria's exchange rate, which was N460.53 per dollar as of April 23, 2023; over a period of seven years.
According to information from the Debt Management Office's external debt stock reports, the country's debt to the World Bank increased from $6.29 billion (N2.9 trillion) in December 2015 to $13.93 billion (N6.42 trillion) in December 2022.
Nigeria has received loans from the World Bank's International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) over the years.
Provision Of Export Processing Zones All Over The Country:
The Export Processing Terminals (EPTs) will seek to address quality concerns over Nigeria’s exports through the timely processing of export and onward delivery to the port. In the past, exports from Nigeria arriving at destination ports were rejected because they have either expired or halved their shelf-life because of longer waiting time to access the port and longer time spent on sea-going vessels. Exporters lose about N700m worth of exports annually due to rejection.
There is no state in Nigeria that does not have one or two commodities or solid minerals to export.
While advising the incoming government to address all the barriers identified that have been militating against the success of non-oil exports in Nigeria, the stakeholders however emphasized the need to focus more on exports of services as well as utilize the opportunities provided by AfCFTA and the introduction of export processing zones reforms.
“A lot more can be done to expand the scope of services export in Nigeria”, said Muda Yusuf, CPPE DG.
“The service sector accounts for over 50 per cent of our Gross Domestic Product, (GDP). There are enormous opportunities in services export. Already we have remarkable footprints in many African countries and even globally in Financial Services, ICT, Telecoms, Sports, Music, Spiritual Services, Transportation, Entertainment, Fashion, Hospitality etc.”, he added.
Tunde Abioye, FBNQuest also said: “The services account has historically run on a deficit. This has not received a lot of attention by the media. However, a lot is required to promote the export of services.
"Nigeria could come up with a plan to gain comparative advantage in services such as IT, education, health, tourism etc. Countries like India (IT), Mauritius (financial services), and Egypt (tourism) have succeeded in achieving this.”
Strategic Reforms Required For Non-Oil Exports In Nigeria
“The incoming government should make some strategic reforms for Non-Oil Exports development”, said Sylvester Anaba, Team Lead, and Research. Elaborating, he said: “The new government should develop agricultural various value chains, especially incorporating the agro-processing industry.
“The new government should utilize the opportunities provided by AfCFTA. Currently, Africa accounts for only 9.9% of Nigeria’s exports.
“The issue of infrastructure deficit should be addressed; good road networks, ports systems, storage facilities, and improved electricity supply will boost Non-Oil Exports. Export processing zone reforms will greatly improve non-oil exports.”
Addendum:
Our company is one of the best companies in the Agro-Export business in Nigeria today. We train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
