Category Archives: Export

NEPC Harmonises Trade, Information on Goods

The Nigerian Export Promotion Council (NEPC) said it is simplifying trade procedures by harmonising the electronic business standards and  the automation of information flow of goods and services along the supply chain.

‘How improved regulations can aid non-oil export growth’

Identifying non-oil export as a leading priority for sustainable economic development, the Lagos Chamber of Commerce and Industry (LCCI) has urged managers of the Nigerian economy to streamline the fragmented regulatory environment and enforcement framework inhibiting the growth of the non-oil export sector.

The president, LCCI, Babatunde Ruwase, explained that there are still incidences of multiple regulations and guidelines set by various ministries, departments and agencies resulting in too many approvals and signatories before export-related transactions are consummated.

The LCCI boss at the chamber’s 2019 export group’s symposium tagged “Synergy between Regulations and Trade in Nigeria: Driving Exports”, said in the process of getting approvals and required signatories, exporters sometimes suffer huge financial losses arising from mortalities of perishable produce/products.

“This, in effect, creates an environment of distrust and makes it difficult to grow the sector. Our position at the LCCI is that regulations must be simplified, effective, modernised and responsive, thereby making compliance less cumbersome and burdensome on the operators,” he added.

He maintained that it was imperative to create an effective collaboration between the Government and the Private Sector to address and resolve challenges hindering export expansion.

“There must be regular engagement of all stakeholders to develop the right ecosystem for an export-led economy. This symposium, therefore, aims at creating the needed platform for supporting the creation of the right ecosystem that is much desired,” he stressed.

He said the theme of the symposium is very strategic and timely due to the fact that export, particularly non-oil export, is the backbone of sustainable economic growth and development.

He added that the forum was also timely to fortify the diversification agenda of the current administration as enc
encapsulated in the Economic Recovery and Group Plan (ERGP).

“With the appointment of new ministers and the formation of the federal cabinet, this symposium provides another opportunity to set agenda for the new ministers to deliver promptly of the promises of the government,” he said.

According to him, over the years, oil has dominated Nigeria’s export trade and recent statistics from the National Bureau of Statistics (NBS) showed that Crude oil contribution to total export was 82 per cent in Q1 2019, stating that in contrast, the percentage of non-oil export was 4 percent, 5 per cent, 6 per cent and 13 per cent in 2016, 2017, 2018 and Q1 2019, respectively.

However, the non-oil export recorded a growth of 83 per cent in 2017 and 89 per cent in 2018. This trend indicates that the government’s effort on export diversification appears to be yielding positive results in recent times, though the performance of the sector is still largely below potentials.

The Chairman Export Group, LCCI, Ademola Agboola, said businesses in Nigeria are having challenging times even as the government is working hard to get the economy back into good times.

He added that exports from Nigeria dropped 0.2 per cent year on year to N1.452 trillion in March 2019, amid declines in sales of raw material (-20.5 per cent); solid mineral (-43.1 per cent) and energy goods (-4.8 per cent).

In contrast, exports grew for agricultural goods (74.5 per cent); crude oil (0.7 per cent) and manufactured goods (353.6 per cent). These significant increases do not really translate to better times for wider demography of the private sector. Our revenue is still much dependent on oil. We have the capacity to do much better,” he said.

He said most rejects are caused by delays, wrong documentation, multiple approval of different agencies with perceived overlapping responsibilities, calling on the need to close gaps in export processes and procedures in order to be more efficient and save cost.

In his remarks, the Chairman and Chief Executive Officer, Olu Olu Foods, Olumuyiwa Aiyegbusi, said the institutional framework is still weak, which he said was responsible for the rejection of some of the nation’s goods at the global markets.

“Only strong institutions would make our goods competitive at the international stage and until we address this, our goods will continue facing the high level of reject in Europe and other parts of the world,” he said.

He called for an increased working relationship between exporters, local traders, and the regulatory agencies.

Guardian

‘Nigeria’s Non-oil Export at stake over continued Border closure’

Members of the Organised Private Sector (OPS), including manufacturers and the Lagos Chamber of Commerce and Industry (LCCI), have decried continued closure of the nation’s border for a drill, citing that goods meant for export to other regional markets were trapped on the corridor.

For instance, some members of the food, beverage and tobacco sub-sector of the Manufacturers Association of Nigeria, who are involved in export, decried the continued stance of the Federal Government of Nigeria on border closure.

Trade malpractices, low export variety drag intra-African trade

With intra-African trade at low levels of 15 per cent despite different schemes to boost activities in the continent, the Economic Community of West African States (ECOWAS) has said the inability of African countries to produce exportable goods and the trade bottlenecks across borders, were responsible for the poor records.The ECOWAS-USAID Senior Trade Facilitation Advisor, Moustapha Gnankambary, has urged enterprises to produce exportable goods in large quantities, maintaining that the continent has a large market with lots of demands yet to be met. Gnankambary stated this on the sidelines of a sensitisation workshop on the ECOWAS Trade Liberalisation Scheme (ETLS), organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos.He said member States are lamenting over the high level of trade malpractices being encountered across different borders in the continent, stressing the need for African countries to combat the menace for goods to move freely across borders.

In his words: “African countries are responsible for low level of intra-African trade, because we do not have goods to export. Enterprises must produce goods that are exportable, because if we do not have goods to export, we cannot increase the level of intra-African trade. We also have to reduce the hindrances on the road. There are cases of bribery, corruption and harassment across borders. We need to fight against these kinds of malpractices for goods to move freely and circulate across the continent.He said Nigeria is number one in terms of registered products and enterprises in the ECOWAS report, but stated that Nigeria with a population of over 200 million, the number of registered enterprises under the ETLS is not a good representation of the nation’s strength.

Earlier, the Special Adviser, Ministry of Commerce, Industry and Cooperatives, Oladele Ajayi, said the workshop tagged “Increasing intra-regional trade through the ETLS”, was designed to achieve integration through a common duty-free market among member States within the West African sub region.He pointed out that according to ECOWAS’ revised treaty, a common market should be established among others, through the liberalisation of trade by abolishing customs duties levied on imports and exports for ensuring a free trade area among member States.

He stated that the workshop could not have been more apt as it would open Lagos entrepreneurs to the opportunities inherent in free trade.He added that the ETLS does not only encourage entrepreneurial development in the ECOWAS region, but also increases intra-regional trade, boosts economic activities, increases West African competitiveness on the global market and GDP of member States for the better welfare of citizens.

“Undoubtedly, our dear Lagos State and Nigeria would benefit tremendously when all indigenous businesses thrive. I am therefore glad to assure all our resilient entrepreneurs of the State government’s support in ensuring that you continually receive necessary support towards maximizing the potential and benefits of ETLS,” he said.

The president, LCCI, Babatunde Ruwase said since the establishment of the Economic Community of West African States (ECOWAS) in 1975 with the purpose of promoting regional cooperation and economic integration, the commission has been making concerted efforts, aimed at enabling Free Trade Areas, a Common Market and a Customs Union among member states.

He added that the commencement of ETLS in 1979 and its subsequent expansion in 1990 to cover industrial products in addition to agricultural, artisanal handicrafts and unprocessed products which it initially covered, showed the desire of member states of ECOWAS to share a common market and remove barriers to trade within the region.

“The ETLS therefore remains the main operational tool for promoting Free Trade Area and ensuring the free movement of goods in the ECOWAS region without the payment of customs duties,” he said.

According to him, with the recent global developments around trade issues, as well as the recent developments regarding the African Continental Free Trade Agreement (AfCFTA) which Nigeria has already signed into, it has become necessary for all stakeholders to come together and discuss on the progress made so far on ETLS as well as the challenges facing its implementation within the region.

Ruwase added: “Lessons learned from our experience with the ETLS would be very useful as we progress with the AfCFTA. The Lagos Chamber of Commerce and Industry believes strongly that Nigeria stands to benefit from the ELTS if member states within the region work towards its successful implementation. It is therefore my hope that the outcome of our deliberations at this forum will help contribute towards the attainment of the goal of deepening intra-regional trade within ECOWAS and laying a solid foundation for the AfCFTA.”

How Nigeria can harvest $2bn from yearly spices export

Professor Haruna Dikko Ibrahim is the Director-General Raw Material Research and Development Council (RMRDC) Abuja. In this interview, he explains the huge potentials Nigeria can generate from the export of spices.

Nigeria’s Non-oil imports In Surpass Exports by 463%

The first quarter trade statistics have shown that Nigeria’s non-oil imports by sea surpassed exports by over 463 per cent.

This is despite government’s efforts in the last four years to diversify the economy from oil (Nigeria’s major revenue source) to non-oil revenue sources.

Also, Nigeria’s total merchandise trade by sea declined by N411.4bn in the first quarter against the value obtained in the fourth quarter of 2018.

Taking Nigeria Food Exports To Dubai

Small and medium enterprises (SMEs) in the country will soon export food to Dubai, United Arab Emirates (UAE), following an agreement with Crenov8, a consultancy firm with food importers in the UAE, writes DANIEL ESSIET.

Promoting and diversifying agricultural exports to the United Arab Emirates (UAE) is a priority for Nigeria.

For this reason, taking stock of the results achieved by institutions and programmes designed to diversify exports is vital.

How to Boost Earnings from Hibiscus Flower

AgroEknor International (AEI), an agricultural and commodity export trading business, is reducing poverty in rural areas, creating  jobs and boosting women’s income through hibiscus flower, DANIEL ESSIET writes.

Widely known for its lush red petals and a combination of sweet and tart taste, HibiscusSabdariffa, commonly known as the hibiscus flower, is used for tea, medicine and animal fodder, among others.

Firm invests N300 million in quality control for Nigeria Exports

LSScientific Limited, a quality control company based in Lagos, Abuja, and United Kingdom, has invested N300 million into building quality control laboratories in Nigeria, to ensure that the quality of goods produced in the country meets international standards.
 
The company, which disclosed this at the launch of its four laboratories in Lagos, said the laboratories would help its customers and the general public to be safer, healthier and scientifically advanced in terms of technology.

How Nigeria can grow cashew Kernel Export Earnings by $3.4m in 2yrs

Data from the Nigeria Export Promotion Council (NEPC) show that Vietnam is currently the largest export destination for Nigerian cashew kernels with average yearly export of N1.27 billion ($3.4 million).

Vietnam is also Nigeria’s largest competitor on a global scale according to the NEPC, but Nigeria stands the chance of earning extra $2.47m by exporting raw cashew kernels to Germany, Netherlands, United Kingdom, Poland and France in the next two years.