Non-oil exports generated $2.7 billion in revenue during the first half of 2024.
Nonye Ayeni, the Executive Director/Chief Executive of the
Nigerian Export Promotion Council (NEPC), announced yesterday that non-oil
exports generated $2.7 billion in the first half of 2024.
This announcement coincided with the release of the latest
Inflation Expectations Survey (IES) by the Central Bank of Nigeria (CBN) for
July 2024, which indicated that businesses in Nigeria are slightly more
optimistic about current inflation trends than households.
Ayeni noted that this figure represents a 6.26 percent
increase from the $2.5 billion recorded in the same period in 2023. The total
export volume during this timeframe reached 3.834 million metric tonnes.
During a press briefing in Abuja, where she presented the
progress report on non-oil export performance for the first half of 2024, Ayeni
highlighted that 211 different products were exported, spanning agricultural
goods to extractive industries.
She emphasized that this performance reflects a shift in
Nigerian exports from traditional raw agricultural products to more
semi-processed and manufactured goods.
Ayeni credited the rise in export value to the successful
government transition in May 2023 and the policy initiatives under President
Bola Tinubu’s Renewed Hope Agenda.
Additionally, she pointed out that the NEPC's
"Operation Double Your Exports" initiative has positively influenced
these results.
Through strategic partnerships, advocacy, capacity building,
and export intervention programs, the council has achieved significant
milestones that contributed to the growth in both the volume and value of
Nigeria’s non-oil exports.
She reaffirmed the council's commitment to collaborating
with key stakeholders to further enhance export growth.
Ayeni expressed optimism that the various export
intervention programs and projects initiated by the organization, coupled with
the flagship campaign program, “Operation Double Your Exports,” will
significantly contribute to the nation’s Gross Domestic Product (GDP), boost
foreign exchange earnings, and ensure sustainable economic growth. These
efforts align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which
prioritizes job creation and poverty alleviation.
Upon assuming office in October 2023, Ayeni and his
management team committed to repositioning the non-oil export sector to enhance
global competitiveness.
A management retreat was subsequently held in January 2024
to reassess the council’s export promotional programs, develop new strategic
plans to strengthen operational efficiency, and consolidate previous
achievements.
According to her, many exportable products and their
derivatives are progressively gaining prominence due to increasing global
demand. Fresh vegetables, citrus peel, and sorghum are among these products.
While their contributions are still developing, their regular inclusion in
exports suggests a growing presence in the export market.
The services sector, particularly logistics and ICT, holds
significant untapped potential. Financial institutions should seize
opportunities in the non-oil export sector by supporting exporters to enhance
production capacity and access international markets, especially with the
advent of the African Continental Free Trade Area (AfCFTA).
This support is crucial for expanding the range of
exportable products, stimulating value-addition, and increasing Nigeria’s
foreign exchange earnings. Access to affordable finance will enable exporting
companies to scale up production and capitalize on global market opportunities,
thereby boosting export volumes.
She went on to say that a primary goal of the council is to
reduce the amount of Nigerian products that are rejected.
She stated, the council is working with relevant agencies
and parastatals to raise awareness, develop capacity for sound agricultural
practices, labeling, and packaging, and guarantee adherence to the quality and
standards of exports in the global market.
Meanwhile, The CBN's IES for July 2024 indicated that
businesses in the country exhibited a slightly less negative view of current
inflationary trends compared to households.
The survey, which included responses from 1,600 businesses
and 1,650 households nationwide, found that while both groups acknowledged high
inflation, businesses maintained a marginally more favorable perspective.
Specifically, 83.7 percent of respondents recognized the
current inflation level as elevated, resulting in an overall index of -61.1
points.
However, businesses reported a less severe outlook with an
index of -58.7 points, in contrast to households, which had an index of -63.3
points. This disparity suggests that businesses are more optimistic regarding
the inflationary climate than households.
Conversely, larger businesses expressed heightened concern,
reflected in an index of -70.8 points, indicating a strong perception of high
inflation. Nonetheless, businesses generally expect a lower inflation rate in
the near term compared to households.
Additionally, a separate survey released yesterday, titled
“Household Expectations Survey for July,” highlighted that consumers' overall
outlook for July 2024 was pessimistic, with many anticipating a need to deplete
savings or incur debt.
The report indicated that the projections for the upcoming
month, two months, and six months suggest that respondents foresee a further
increase in inflation during these periods, with indices of -37.4 for the next
month, -26.3 for the following two months, and -15.8 for the next six months.
Overall, there is an expectation among respondents that the inflation rate will
gradually decrease over the next half-year.
A more detailed analysis shows that businesses predict a
lower inflation rate compared to households, with indices of -34.4 for the next
month and -11.0 for the next six months. Interestingly, for the upcoming month,
households anticipate a lower inflation rate with an index of -26.1, while
businesses report an index of -26.5. In summary, both sectors expect inflation
to rise further during the review periods.
Looking ahead to the next six months, businesses believe
that their inflation outlook will be significantly influenced by fluctuations
in energy prices, which have an index of 92.8, followed by exchange rates at
89.8, and transportation costs at 88.6 index points.
Similarly, households expect their inflation outlook to be
largely affected by energy prices at 88.1, transportation costs at 85.0, and
exchange rates at 82.7 index points. These elements consistently rank as the
primary concerns shaping inflation expectations among households.
A further analysis by Income group revealed that respondents
earning between N150,001 and N200,000 perceived inflation as excessively high,
with an index of -66.4 points.
Those earning above N200,000 had a less negative index of
-58.3 points, indicating a lower level of pessimism regarding current inflation
expectations.
Furthermore, factors such as escalating energy costs, a
persistently high exchange rate, and transportation expenses were identified as
the primary drivers of inflation. Notably, energy costs rose from 90.6 points
in June to 91.8 points in July, making it the most significant contributor.
The survey indicated that in July 2024, 83.7 percent of
respondents perceived the current inflation level as high, reflected by an
index of -61.1 points. A detailed analysis of the responses showed that
businesses reported an index of -58.7 points, which is slightly more optimistic
than households, which had an index of -63.3 points. This suggests that
businesses are somewhat less negative in their inflation outlook compared to
households. Additionally, large businesses expressed a strong belief that inflation
is excessively high, with an index of -70.8 points.
When examining the data by income group, those earning
between N150,001 and N200,000 perceived inflation as too high, with an index of
-66.4 points. In contrast, the group earning above N200,000 had a less negative
index of -58.3 points, indicating a more favorable outlook on inflation
expectations for the current period.
Key factors influencing the inflation perception among
businesses included rising energy costs, which increased from 90.6 points in
June to 91.8 points in July, making it the primary driver.
The exchange rate remained high, with a slight rise from
88.3 in June to 88.8 in July. Transportation costs also contributed
significantly to inflation during this period, with an index of 88.5 points.