Post by Trade facilitator on Mar 7, 2023 20:52:56 GMT 1
Nigeria’s annual Gross Domestic Product (GDP) growth rate slowed to 3.10 per cent in 2022, compared to 3.40 per cent in 2021, the National Bureau of Statistics (NBS) disclosed recently.
However, the economy grew by 3.52 per cent (year-on-year) in real terms in the fourth quarter of 2022 (Q4 2022), compared to 2.25 per cent in the preceding quarter.
According to the GDP Report for Q4 2022, aggregate GDP stood at N56.76 trillion compared to N49.28 trillion in Q4 2021, indicating a year-on-year nominal growth of 15.18 per cent.
Interestingly, the economy was largely driven by the non-oil sector which accounted for 95.66 per cent of growth while the oil sector contributed 4.34 per cent.
This underscores the importance of the non-oil sector to Nigeria’s economic growth.
That was why in line with its drive to further boost Nigeria’s non-oil exports, a delegation from the Nigerian Export-Import Bank (NEXIM) led by the Managing Director/Chief Executive, Mr. Abba Bello; Executive Director Corporate Services, Bala Bello, and other staff recently undertook a working visit/strategic engagement with some International Development Finance Institutions, which included the Islamic Development Bank (ISDB) and the Saudi Export-Import Bank. The purpose of the visit which took place last month, was to engage in various bilateral meetings and other activities towards attracting development funds into the Nigerian non-oil export sector, promote capacity building and information exchange, as well as engage in necessary partnerships towards developing new products, particularly non-interest banking products to fill the yearning gap in the Nigerian financial system.
Significant milestones during the visit included signing a Memorandum of Partnership (MoP) with the Saudi Export–Import Bank. Key aspects of the MoP was to collaborate in co-financing, club deals, syndication projects, and provision of Buyer’s Credit facilities to Nigerian institutions to purchase the goods and services and financing for project development tied to Saudi Exports.
With the MOP, the two institutions seek to cooperate in providing financing, investment and other services to promote trade between the two countries. The institutions also seek to explore the possibility of knowledge sharing, staff training and capacity building initiatives.
The MOP was executed by the CEO of Saudi EXIM, Saad Alkhalib and Abba Bello, who signed on behalf of their respective institutions.
Specifically, the parties agreed to collaborate in the areas of co-financing, club deals and syndication projects. The Saudi Exim also agreed to provide Buyer’s Credit facilities to Nigerian institutions for the purchases of Saudi goods and services and or financing for project development tied to Saudi Exports.
The NEXIM team also paid working visit to the Vice President of the ISDB, Dr. Mansur Muhtar, who was represented by Anasse Alsami, the Acting Vice President and Director General, Vice President’s Office.
Discussions during the meeting focused on promoting African Arab Trade, mutual sharing of information, capacity building, and the ISDB Reverse Linkage Policy. The parties also discussed how Nigeria could benefit from ISDB’s programs, such as the “She Trade” and “Women Tech Stars” programs.
The Bank also held technical meetings with various institutions under the ISDB Group. This included the Islamic Solidarity Fund (ISFD) to discuss modalities on how the Bank and Nigeria can benefit from the ISDB Guarantee Facility Fund and Capacity Building Programmes. The Senior Advisor to the Director General of ISFD, Khamais EL Gazzah, and his team represented the institution.
The Bank also met with the Chief Operating Officer of the International Trade Finance Corporation (ITFC), who also doubles as the Acting MD of International Cooperation for The Development of The Private Sector (ICD) Nazeem Nordali, and other officials from both the ITFC and ICD.
During the meeting, the Bank discussed progress on the $200 million ISDB line of financing for Nigeria through NEXIM. Other discussion areas included opportunities for collaboration towards securing funding for port infrastructure in furtherance of the NEXIM Sealink project.
NEXIM also had an engagement with Global Partnership & Practices (GPP) officials, represented by the Director of Resilience & Climate Action, Syed Hussain Quadri, and Nabil Ghalleb, Director, Economic Empowerment.
During the meeting, the Bank called for a partnership to promote SMEs in Nigeria. The GPP agreed to support Nigerian entrepreneurs through some of its initiatives such as “Business Resilience Assistance for Value-Adding Enterprises for Women (BRAVE),” “She Trade Programme,” which supports women in trade, “Women Tech Stars,” which supports women in technology.
In his remarks, the NEXIM MD/CE said that the working visit to Saudi Arabia promises to provide many benefits for the Nigerian economy and the non-oil export sector.
“Besides the $200 million Line of Credit, which is already being processed, the Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank. We also have the opportunity for capacity building, particularly in developing Islamic banking products, which will provide financial inclusion for some of our exporters, who hitherto, have not benefited from our regular banking products,” Abba Bello said.
Abba Bello had stressed the need to pay greater attention to the non-oil sector.
According to him, non-oil exports have the potential to drive the needed inclusive growth, hence the need to double efforts to grow the boost activities in the areas.
Bello, however, noted that the Nigerian economy was well diversified. What remained undiversified, he argued, was the external sector. He regretted that the country’s foreign exchange earnings still revolved on crude, which posed a concentration risk.
“About 90 per cent of our foreign earnings still come from oil. Non-oil used to contribute about five per cent. But the recent emphasis on non-oil in recent years has helped to raise its contribution. But what we have is still very poor,” he regretted.
According to Bello, the non-oil export growth agenda is constrained by issues ranging from production, quality standards to packaging challenges. He said Nigeria was losing so much to poor packaging, which should improve if the country must earn more from non-oil exports.
Also analysts as well as the Minister of Trade and Investment, Niyi Adebayo, had stressed the need for the country to support non-oil exports in order to boost the nation’s GDP in the light of present economic realities.
Adebayo had also underscored the need for Nigeria to move beyond oil and export of raw commodities and build a vibrant manufacturing sector capable of exporting finished goods that could boost the nation’s foreign exchange earnings.
He said, “As a nation, this is the time to build a competitive manufacturing sector to see us through the next 50 years, especially in the light of the African Continental Free Trade Area – one of the most important and strategic international economic agreements ever enacted.”
For the Chief Executive Officer of Zenith Bank Plc, Mr. Ebenezer Onyeagwu, expanding the country’s non-oil
export has remained a matter of strategic economic importance requiring continual intervention.
He pointed out that the impact of the pandemic on oil demand and, by extension, the price of crude oil in the international commodities market further exposed Nigeria’s over-dependency on crude oil earnings and its susceptibility to oil-related vagaries.
“The expectation is that export diversification programmes and initiatives will intensify as Nigeria continues to re-orient its export profile and boost foreign currency earnings. Reinvigorating the Nigerian economy calls for measures to reduce the country’s dependence on oil exports.
“It requires expanding the array of the country’s value-added products that are exported to foreign markets. When combined with the promise of the African Continental Free Trade Area (AfCFTA), more non-oil exports translate into enterprise and industry level competitiveness with positive implications for job creation and technological development while enabling the country to earn and save much-needed foreign currency,” Onyeagwu explained.
In order to avoid such disruptions and diversify the economy by promoting activities in the non-oil sector, in 2020, the federal government rolled out a N50 billion Export Expansion Facility Programme (EEFP) under the N2.3 trillion National Economic Sustainability Plan. The programme was designed to increase Nigeria’s export capacity in the near term and export volumes in the medium term by supporting exporters, especially micro, small and medium entrepreneurs (MSMEs).
The EEFP targets 16 programmes in five areas, including capacity building, financing, market development, infrastructure, and institutional strengthening.
Overall, the working visit to Saudi Arabia promises to provide a lot of benefits for the Nigerian economy and the non-oil export sector in particular.
Besides the $200 million Line of Credit, which is already being processed, the Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank.
One of the highpoints is the opportunity for capacity building, particularly in the area of developing Islamic banking products, which will provide financial inclusion for some of our exporters, who hitherto, have not benefited from our regular banking products.
Source: www.thisdaylive.com/index.php/2023/03/06/nexims-push-to-boost-nigerias-non-oil-exports/
However, the economy grew by 3.52 per cent (year-on-year) in real terms in the fourth quarter of 2022 (Q4 2022), compared to 2.25 per cent in the preceding quarter.
According to the GDP Report for Q4 2022, aggregate GDP stood at N56.76 trillion compared to N49.28 trillion in Q4 2021, indicating a year-on-year nominal growth of 15.18 per cent.
Interestingly, the economy was largely driven by the non-oil sector which accounted for 95.66 per cent of growth while the oil sector contributed 4.34 per cent.
This underscores the importance of the non-oil sector to Nigeria’s economic growth.
That was why in line with its drive to further boost Nigeria’s non-oil exports, a delegation from the Nigerian Export-Import Bank (NEXIM) led by the Managing Director/Chief Executive, Mr. Abba Bello; Executive Director Corporate Services, Bala Bello, and other staff recently undertook a working visit/strategic engagement with some International Development Finance Institutions, which included the Islamic Development Bank (ISDB) and the Saudi Export-Import Bank. The purpose of the visit which took place last month, was to engage in various bilateral meetings and other activities towards attracting development funds into the Nigerian non-oil export sector, promote capacity building and information exchange, as well as engage in necessary partnerships towards developing new products, particularly non-interest banking products to fill the yearning gap in the Nigerian financial system.
Significant milestones during the visit included signing a Memorandum of Partnership (MoP) with the Saudi Export–Import Bank. Key aspects of the MoP was to collaborate in co-financing, club deals, syndication projects, and provision of Buyer’s Credit facilities to Nigerian institutions to purchase the goods and services and financing for project development tied to Saudi Exports.
With the MOP, the two institutions seek to cooperate in providing financing, investment and other services to promote trade between the two countries. The institutions also seek to explore the possibility of knowledge sharing, staff training and capacity building initiatives.
The MOP was executed by the CEO of Saudi EXIM, Saad Alkhalib and Abba Bello, who signed on behalf of their respective institutions.
Specifically, the parties agreed to collaborate in the areas of co-financing, club deals and syndication projects. The Saudi Exim also agreed to provide Buyer’s Credit facilities to Nigerian institutions for the purchases of Saudi goods and services and or financing for project development tied to Saudi Exports.
The NEXIM team also paid working visit to the Vice President of the ISDB, Dr. Mansur Muhtar, who was represented by Anasse Alsami, the Acting Vice President and Director General, Vice President’s Office.
Discussions during the meeting focused on promoting African Arab Trade, mutual sharing of information, capacity building, and the ISDB Reverse Linkage Policy. The parties also discussed how Nigeria could benefit from ISDB’s programs, such as the “She Trade” and “Women Tech Stars” programs.
The Bank also held technical meetings with various institutions under the ISDB Group. This included the Islamic Solidarity Fund (ISFD) to discuss modalities on how the Bank and Nigeria can benefit from the ISDB Guarantee Facility Fund and Capacity Building Programmes. The Senior Advisor to the Director General of ISFD, Khamais EL Gazzah, and his team represented the institution.
The Bank also met with the Chief Operating Officer of the International Trade Finance Corporation (ITFC), who also doubles as the Acting MD of International Cooperation for The Development of The Private Sector (ICD) Nazeem Nordali, and other officials from both the ITFC and ICD.
During the meeting, the Bank discussed progress on the $200 million ISDB line of financing for Nigeria through NEXIM. Other discussion areas included opportunities for collaboration towards securing funding for port infrastructure in furtherance of the NEXIM Sealink project.
NEXIM also had an engagement with Global Partnership & Practices (GPP) officials, represented by the Director of Resilience & Climate Action, Syed Hussain Quadri, and Nabil Ghalleb, Director, Economic Empowerment.
During the meeting, the Bank called for a partnership to promote SMEs in Nigeria. The GPP agreed to support Nigerian entrepreneurs through some of its initiatives such as “Business Resilience Assistance for Value-Adding Enterprises for Women (BRAVE),” “She Trade Programme,” which supports women in trade, “Women Tech Stars,” which supports women in technology.
In his remarks, the NEXIM MD/CE said that the working visit to Saudi Arabia promises to provide many benefits for the Nigerian economy and the non-oil export sector.
“Besides the $200 million Line of Credit, which is already being processed, the Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank. We also have the opportunity for capacity building, particularly in developing Islamic banking products, which will provide financial inclusion for some of our exporters, who hitherto, have not benefited from our regular banking products,” Abba Bello said.
Abba Bello had stressed the need to pay greater attention to the non-oil sector.
According to him, non-oil exports have the potential to drive the needed inclusive growth, hence the need to double efforts to grow the boost activities in the areas.
Bello, however, noted that the Nigerian economy was well diversified. What remained undiversified, he argued, was the external sector. He regretted that the country’s foreign exchange earnings still revolved on crude, which posed a concentration risk.
“About 90 per cent of our foreign earnings still come from oil. Non-oil used to contribute about five per cent. But the recent emphasis on non-oil in recent years has helped to raise its contribution. But what we have is still very poor,” he regretted.
According to Bello, the non-oil export growth agenda is constrained by issues ranging from production, quality standards to packaging challenges. He said Nigeria was losing so much to poor packaging, which should improve if the country must earn more from non-oil exports.
Also analysts as well as the Minister of Trade and Investment, Niyi Adebayo, had stressed the need for the country to support non-oil exports in order to boost the nation’s GDP in the light of present economic realities.
Adebayo had also underscored the need for Nigeria to move beyond oil and export of raw commodities and build a vibrant manufacturing sector capable of exporting finished goods that could boost the nation’s foreign exchange earnings.
He said, “As a nation, this is the time to build a competitive manufacturing sector to see us through the next 50 years, especially in the light of the African Continental Free Trade Area – one of the most important and strategic international economic agreements ever enacted.”
For the Chief Executive Officer of Zenith Bank Plc, Mr. Ebenezer Onyeagwu, expanding the country’s non-oil
export has remained a matter of strategic economic importance requiring continual intervention.
He pointed out that the impact of the pandemic on oil demand and, by extension, the price of crude oil in the international commodities market further exposed Nigeria’s over-dependency on crude oil earnings and its susceptibility to oil-related vagaries.
“The expectation is that export diversification programmes and initiatives will intensify as Nigeria continues to re-orient its export profile and boost foreign currency earnings. Reinvigorating the Nigerian economy calls for measures to reduce the country’s dependence on oil exports.
“It requires expanding the array of the country’s value-added products that are exported to foreign markets. When combined with the promise of the African Continental Free Trade Area (AfCFTA), more non-oil exports translate into enterprise and industry level competitiveness with positive implications for job creation and technological development while enabling the country to earn and save much-needed foreign currency,” Onyeagwu explained.
In order to avoid such disruptions and diversify the economy by promoting activities in the non-oil sector, in 2020, the federal government rolled out a N50 billion Export Expansion Facility Programme (EEFP) under the N2.3 trillion National Economic Sustainability Plan. The programme was designed to increase Nigeria’s export capacity in the near term and export volumes in the medium term by supporting exporters, especially micro, small and medium entrepreneurs (MSMEs).
The EEFP targets 16 programmes in five areas, including capacity building, financing, market development, infrastructure, and institutional strengthening.
Overall, the working visit to Saudi Arabia promises to provide a lot of benefits for the Nigerian economy and the non-oil export sector in particular.
Besides the $200 million Line of Credit, which is already being processed, the Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank.
One of the highpoints is the opportunity for capacity building, particularly in the area of developing Islamic banking products, which will provide financial inclusion for some of our exporters, who hitherto, have not benefited from our regular banking products.
Source: www.thisdaylive.com/index.php/2023/03/06/nexims-push-to-boost-nigerias-non-oil-exports/
