Nigeria’s non-oil export sector is expanding rapidly, but the boom is not translating into broad local prosperity. Behind the glowing statistics and upbeat government reports, industry insiders warn that foreign operators — mostly from India, China, Lebanon, and Vietnam — are tightening their grip on the country’s export trade, leaving indigenous businesses struggling to compete.
According to new figures from the National Bureau of Statistics (NBS) and the Nigerian Export Promotion Council (NEPC), non-oil export earnings surged to ₦4.8 trillion in the first half of 2025, marking an impressive 391% increase from ₦977 billion in the same period of 2021. The NEPC hailed this as evidence that President Bola Tinubu’s Renewed Hope Agenda is yielding results.
“We are seeing positive dividends of the President’s policies,” said NEPC’s Director-General, Nonye Ayeni. “Our mandate is to sustain momentum by working with stakeholders to provide incentives that encourage more exports.”
Yet beneath the surface of this apparent success, many Nigerian exporters are sounding alarms about systemic challenges that continue to undermine local participation and profitability.
Foreign Control and Funding Disparities
Dr. Ojo Ajanaku, President of the National Cashew Association of Nigeria (NCAN), described a deeply uneven playing field in which local exporters are effectively boxed out of the most lucrative opportunities.
“We have the capacity to produce and export more,” he told Financial Vanguard, “but funding remains our biggest challenge. Foreign exporters have access to cheaper credit, both from their home countries and even from Nigerian banks, while local producers face prohibitive interest rates and rigid collateral requirements.”
Ajanaku revealed that many foreign traders bypass Nigeria’s export documentation process, particularly the Nigerian Export Proceeds (NXP) Form, which ensures export earnings are repatriated.
“These foreigners buy cashew and other commodities from local producers and export them without filling the NXP form,” he explained. “That means the proceeds often never return to Nigeria, depriving the country of valuable foreign exchange.”
The dominance of foreign buyers, Ajanaku added, has also led to unhealthy market practices. Local farmers, desperate for buyers, often sell prematurely to foreign agents who pressure them to harvest before maturity, reducing both the yield and quality of produce.
Bureaucratic Bottlenecks and Processing Challenges
Beyond financing, Nigerian exporters continue to grapple with logistical and administrative constraints. Port congestion, slow clearance processes, and overlapping regulatory requirements often delay shipments and cause exporters to breach contracts.
“Sometimes goods arrive at the port but cannot be shipped on time due to bureaucratic bottlenecks,” Ajanaku lamented. “Such delays discourage exporters and erode credibility with international buyers.”
He further emphasized that the lack of affordable processing facilities is preventing Nigeria from moving up the value chain. “We mostly export raw nuts, while countries like India and Vietnam process theirs and earn significantly higher margins,” he said. “If government can provide Special Agro-Processing Loans at single-digit interest rates — around 3–5% — and energy incentives, local processors could compete globally.”
Ajanaku warned that without these interventions, Nigeria’s once-dominant position in cashew production will continue to slide. “We used to be number one globally; now we’ve dropped to number four. With proper investment and security in farmlands, we can reclaim that spot.”
Experts Call for Value Addition and Structural Reform
While analysts acknowledge that Nigeria’s non-oil exports are growing in value, they caution that the structure of the trade remains skewed toward raw commodity exports.
Dr. Mark Ojobi, an economist at Yakubu Gowon University, observed that macroeconomic shifts such as subsidy removal and naira floatation have made exports more profitable in naira terms.
“Exporters now see more returns when they convert foreign earnings,” he said. “However, we’re still exporting unprocessed goods — cocoa, cashew, sesame — which fetch less value. The real breakthrough will come when Nigeria starts exporting processed products.”
According to Ojobi, adding value could quadruple Nigeria’s earnings: “The difference between $13 billion and $50 billion in export value lies in processing.”
Economist Chief Peter Ameh also noted that a large portion of non-oil exports bypass formal channels. “Due to bureaucratic red tape, many transactions occur informally across borders with Benin, Niger, and Cameroon,” he said. “This means actual figures could be higher — or lower — than official estimates.”
Civil Society and Policy Perspectives
Advocacy groups have echoed the call for deeper reforms. The Civil Society Legislative Advocacy Centre (CISLAC) argued that Nigeria’s export system remains “sub-optimal” despite headline growth.
Executive Director Auwal Musa stressed: “We must ensure that these statistics translate to tangible benefits for ordinary exporters and workers. The ultimate goal is not just higher export figures but improved livelihoods.”
Responding to industry concerns, NEPC spokesperson Ndubueze Okeke clarified that some of the major issues raised — including high interest rates and port delays — fall outside the council’s direct control.
“These areas are handled by the Central Bank, commercial banks, and the Nigerian Ports Authority,” Okeke said. “However, we continue to advocate for policies that ease the export process and empower Nigerian operators.”
The Road Ahead
Nigeria’s non-oil export surge represents both promise and paradox — impressive on paper, yet fraught with systemic barriers that keep local businesses on the margins. Unless deliberate measures are taken to promote value addition, affordable financing, and administrative efficiency, much of the sector’s potential may continue to flow offshore.
As the government celebrates record export earnings, stakeholders insist the real measure of success will be how much of that growth is truly Nigerian-owned.