In a ministerial consultation held on Tuesday in Lagos with the top 100 exporters, the Federal Government, through the Ministry of Industry, Trade, and Investment, has committed to addressing the issue of overlapping responsibilities among agencies that contribute to increased costs for exporters.
Dr. Jumoke Oduwole, the Minister for Industry, Trade, and Investment, made this assurance during the meeting, which brought together stakeholders from various sectors to discuss the challenges facing the export industry.
Dr. Oduwole emphasized the persistent bureaucratic inefficiencies, including conflicts between agencies such as the Standards Organisation of Nigeria and the National Agency for Food and Drug Administration and Control, which impose burdens on manufacturers. She noted, the difficulties, departmental barriers, miscommunication, and overlapping responsibilities that increase costs for the private sector are familiar to me.
“To not address these issues is to shoot ourselves in the foot and leave value on the table. Mr President (Bola Tinubu) has given me marching orders, and together with my colleagues, we will deliver this for the Nigerian economy.”
The minister underscored the government's dedication to improving both goods and services exports, with a specific emphasis on digital trade, which she identified as a substantial opportunity for Nigerian youth.
“We are also backing Nigerian service exporters, which represents a prime opportunity for young Nigerians to generate foreign exchange while remaining in the country through their service exports.
“They possess remarkable skills in digital trade. Nigeria is poised to become a leading player in this sector,” Oduwole stated.
Stakeholders were encouraged to remain committed by the speaker, who noted that while the reforms may be challenging, progress is being made. Collaboration was emphasized as essential for ensuring the economy's prosperity.
In related news, Nonye Ayeni, Director-General of the Nigerian Export Promotion Council, addressed exporter concerns by outlining initiatives aimed at streamlining export procedures.
The NEPC's approval from the Central Bank of Nigeria to accept the CFA Franc as part of export proceeds was announced by Ayeni.
However, she raised concerns about the current burden on exporters, who must complete up to 23 documents to establish a Non-Oil Export Support Programme account. She committed to reducing this number with the support of the Minister of Industry..
“We are collaborating with stakeholders, and with the Honourable Minister’s assistance, we anticipate significant improvements shortly,” Ayeni assured.
In addition, Mr. Abba Bello, the esteemed Managing Director of the Nigerian Export-Import Bank, astutely identified financing as a significant impediment to the expansion of export activities.
Bello emphasized the imperative for commercial banks to augment their participation in the provision of financial support for non-oil exports, articulating that numerous challenges encountered by exporters, encompassing infrastructure and logistics, are inextricably linked to financing.
Furthermore, the NEXIM leader passionately advocated for a strategic shift from the exportation of raw materials to processed goods, a transformation that holds immense potential to substantially enhance Nigeria's export revenue.
“In a global market valued at $200 billion, Nigeria currently earns less than $2 billion. We must broaden our value chain and integrate.”
Exporters at the event advocated for immediate measures to boost non-oil export revenues by ten times. During a workshop led by Eyitope Oyeneyin from Augmentum Advisory, participants pinpointed the Export Expansion Grant, tax exemptions, and interventions from the NEPC as the most significant government initiatives.
Oyeneyin stated: “The three government interventions that have proven most beneficial to exporters are the Export Expansion Grant (44%), Tax Exemption for Importers (22%), and NEPC (17%). This is followed by the RT200 initiative, aimed at achieving $200 billion in FX Repatriation (8%), and dedicated port terminals for exporters (4%).”
Additionally, Odiri Erewa-Meggison, Chairman of the Manufacturers Association of Nigeria Export Promotion Group, emphasized the need for enhanced energy supply for manufacturers and a more efficient process for repatriating export proceeds.
“We also require foreign missions to be integrated into the export value chain to improve information dissemination,” Erewa-Meggison noted.
In a related call, Dele Oye, a representative from the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, urged for policies that motivate farmers to boost production, ensuring that exporters have sufficient supplies.