Post by Trade facilitator on Oct 20, 2013 20:59:01 GMT 1
Exports are mainly goods and services provided by nations that have natural comparative advantage (rich natural resources and skills) along the value chain of the specific item in question, over other nations/their contemporaries in the international market. There must of course, be an ample evidence of high competitiveness in pricing (competitive cost bases) of the given item within the said economy. In Nigeria for instance, the nation has untapped enormous potentials in Agro-business, solid minerals, real sector/manufacturing of diverse products and all kinds of services (i.e. the intangible goods).
Narrowing it down to specifics, examples could further be given in details. In agro-business; mechanized commercial rice farming in places like Adani in Anambra state and Abakaliki and Oso-edda (both in Ebonyi state) have not been tapped. In the case of cassava, cassava farming has not really improved or received an adequate and befitting boost or mechanized farming equipment support along its value chain in the country, though Nigeria is recognized as the largest producer of cassava in the world. This crop is grown in virtually all parts of Nigeria and the presidential initiative of July, 2003, to promote cassava as a foreign exchange earner brought to limelight its tremendous economic potentials as food and industrial raw material.
At this juncture, it shall be good and worthwhile to mention of the Staple Crop Processing Zones expected to be developed in 14 zones across the country, with the intention to attract the private sector in setting up food manufacturing plants in areas of high production, retail outlets for import substitution. These planned investments cover mechanized farming, production and processing of rice, cassava, palm-oil and many other crops.
On an item like palm-oil, it is a very important example to be mentioned under agro-business. Nigeria is still among the world’s top producers of palm-oil (after Malaysia and Indonesia). Historically, in the 1960s, this same Malaysia came and collected palm seedlings from Nigeria! In spite of the fact that this sector in Agro-business dropped over the last 50 years, the country could still bounce back as a net exporter because, it possesses large tracts of arable land for palm-oil production and processing, which the regional markets offer very attractive and significant room for growth.
For non-oil exports, palm-oil still has the potential to be a valuable and profitable contributor to Nigeria’s economy. The groundnuts pyramids of old in Kano (Northern Nigeria) must be mentioned for revitalization in the scheme of agro-business through mechanized commercial agriculture in this 21st century. Cocoa production in the Western part of Nigeria too, should not be left out in the diversified non-oil exports enhancement policy and initiative.
For the solid minerals; basic metals like the steel products are an integral part in the development of the construction sector of the economy and the local automotive assembly plants. The nation has not really tapped her iron ore reserves, which is globally rated as the best and the 12th largest world deposit. The situations at Itakpe, Ajaokuta and Aladja are not very clear in terms of production and processing. There is indeed, an urgent need for these operations to be fully revived because, apart from exports; an increasing local demand is imminent for local consumptions. Factories that are investing on local manufacture of machinery and equipment are currently springing up in some of our Export Processing Zones. They need to be encouraged by provision and availability of certain raw materials like the steel sheets and pellets. That would further enhance our diversified non-oil exports along the value chain of basic metals and automotive assembly (i.e. on locally produced machinery and equipment). On the other hand, the real sector would experience a boost, especially in the area of locally processed primary and intermediate petrochemicals raw materials from our oil & gas downstream sub-sector.
Source: businessdayonline.com/2013/08/diversifying-the-non-oil-exports-1/
Narrowing it down to specifics, examples could further be given in details. In agro-business; mechanized commercial rice farming in places like Adani in Anambra state and Abakaliki and Oso-edda (both in Ebonyi state) have not been tapped. In the case of cassava, cassava farming has not really improved or received an adequate and befitting boost or mechanized farming equipment support along its value chain in the country, though Nigeria is recognized as the largest producer of cassava in the world. This crop is grown in virtually all parts of Nigeria and the presidential initiative of July, 2003, to promote cassava as a foreign exchange earner brought to limelight its tremendous economic potentials as food and industrial raw material.
At this juncture, it shall be good and worthwhile to mention of the Staple Crop Processing Zones expected to be developed in 14 zones across the country, with the intention to attract the private sector in setting up food manufacturing plants in areas of high production, retail outlets for import substitution. These planned investments cover mechanized farming, production and processing of rice, cassava, palm-oil and many other crops.
On an item like palm-oil, it is a very important example to be mentioned under agro-business. Nigeria is still among the world’s top producers of palm-oil (after Malaysia and Indonesia). Historically, in the 1960s, this same Malaysia came and collected palm seedlings from Nigeria! In spite of the fact that this sector in Agro-business dropped over the last 50 years, the country could still bounce back as a net exporter because, it possesses large tracts of arable land for palm-oil production and processing, which the regional markets offer very attractive and significant room for growth.
For non-oil exports, palm-oil still has the potential to be a valuable and profitable contributor to Nigeria’s economy. The groundnuts pyramids of old in Kano (Northern Nigeria) must be mentioned for revitalization in the scheme of agro-business through mechanized commercial agriculture in this 21st century. Cocoa production in the Western part of Nigeria too, should not be left out in the diversified non-oil exports enhancement policy and initiative.
For the solid minerals; basic metals like the steel products are an integral part in the development of the construction sector of the economy and the local automotive assembly plants. The nation has not really tapped her iron ore reserves, which is globally rated as the best and the 12th largest world deposit. The situations at Itakpe, Ajaokuta and Aladja are not very clear in terms of production and processing. There is indeed, an urgent need for these operations to be fully revived because, apart from exports; an increasing local demand is imminent for local consumptions. Factories that are investing on local manufacture of machinery and equipment are currently springing up in some of our Export Processing Zones. They need to be encouraged by provision and availability of certain raw materials like the steel sheets and pellets. That would further enhance our diversified non-oil exports along the value chain of basic metals and automotive assembly (i.e. on locally produced machinery and equipment). On the other hand, the real sector would experience a boost, especially in the area of locally processed primary and intermediate petrochemicals raw materials from our oil & gas downstream sub-sector.
Source: businessdayonline.com/2013/08/diversifying-the-non-oil-exports-1/
