Post by Trade Coach on Sept 3, 2014 22:07:23 GMT 1
Angola and South Africa were the three leading exporters to the United States in 2013 within the provisions of the African Growth and Opportunity Act (AGOA), according to data from the Nigerian Export Promotion Council (NEPC).
The data showed that Nigeria's non-oil exports amounted to $3.0 billion (N486 billion) in 2013, representing a 15.9 per cent increase from the preceding year.
Also, non-oil exports from Nigeria to member countries of the Economic Community of West African States (ECOWAS) stood at $375 million (N60.7) in 2013, an increase of 20 per cent y/y.
According to the NEPC, cocoa emerged again as the leading non-oil export commodity, earning a total of $759 million during the period. Nigeria is ranked the fourth largest exporter of cocoa and its by-products globally.
The NEPC identified 14 key non-traditional products, which offer comparative advantage as cassava, shea products and potatoes. Meanwhile, analysts at FBN Capital argued that for Nigeria to tap effectively into this segment, it is imperative that export commodities meet high standards in order to compete in the global market.
The FBN Capital stated: "There are multiple challenges for non-oil exporters. These include infrastructure deficiencies, high costs of production and weak logistics. A disturbing obstacle is the bad reputation associated with the products, which has led manufacturers in some segments to brand their goods other than "'made in Nigeria".
It added: "Nigerian cuisine and the film industry (Nollywood) are areas the FGN intends to promote internationally. Taking a cue from China which has a strong presence globally in the export of its cuisine, the FGN will initially focus on cities such as London, Houston, Toronto and Johannesburg which have high diaspora populations."
However, the FBN Capital predicted that a sustained growth ahead in export diversification due to developments in agribusiness, the cement segment and mining. It said: "While substantial oil production losses may have raised the profile of non-oil exports, we should remember that Nigeria's economic model is based on import substitution rather than export diversification."
The FGN said its focus is the creation of employment through import substitution, preferably in the taxpaying formal economy, and the resulting foreign exchange savings from domestic production, for example, food crops, vehicles and petroleum products."
The Federal Government recently unfolded plans to increase the country's non-oil exports to the Economic Community of West African States from $276.5 million (N45.62 billion) in 2011 to $706.1million (N116.5 billion) by 2015.
Minister of Industry, Trade and Investment, Mr. Olusegun Aganga disclosed this during the 7th National Council on Industry, Trade and Investment in Markurdi, Benue State.
Source:THISDAYS
The data showed that Nigeria's non-oil exports amounted to $3.0 billion (N486 billion) in 2013, representing a 15.9 per cent increase from the preceding year.
Also, non-oil exports from Nigeria to member countries of the Economic Community of West African States (ECOWAS) stood at $375 million (N60.7) in 2013, an increase of 20 per cent y/y.
According to the NEPC, cocoa emerged again as the leading non-oil export commodity, earning a total of $759 million during the period. Nigeria is ranked the fourth largest exporter of cocoa and its by-products globally.
The NEPC identified 14 key non-traditional products, which offer comparative advantage as cassava, shea products and potatoes. Meanwhile, analysts at FBN Capital argued that for Nigeria to tap effectively into this segment, it is imperative that export commodities meet high standards in order to compete in the global market.
The FBN Capital stated: "There are multiple challenges for non-oil exporters. These include infrastructure deficiencies, high costs of production and weak logistics. A disturbing obstacle is the bad reputation associated with the products, which has led manufacturers in some segments to brand their goods other than "'made in Nigeria".
It added: "Nigerian cuisine and the film industry (Nollywood) are areas the FGN intends to promote internationally. Taking a cue from China which has a strong presence globally in the export of its cuisine, the FGN will initially focus on cities such as London, Houston, Toronto and Johannesburg which have high diaspora populations."
However, the FBN Capital predicted that a sustained growth ahead in export diversification due to developments in agribusiness, the cement segment and mining. It said: "While substantial oil production losses may have raised the profile of non-oil exports, we should remember that Nigeria's economic model is based on import substitution rather than export diversification."
The FGN said its focus is the creation of employment through import substitution, preferably in the taxpaying formal economy, and the resulting foreign exchange savings from domestic production, for example, food crops, vehicles and petroleum products."
The Federal Government recently unfolded plans to increase the country's non-oil exports to the Economic Community of West African States from $276.5 million (N45.62 billion) in 2011 to $706.1million (N116.5 billion) by 2015.
Minister of Industry, Trade and Investment, Mr. Olusegun Aganga disclosed this during the 7th National Council on Industry, Trade and Investment in Markurdi, Benue State.
Source:THISDAYS
