NEPC: ‘Nigeria’s Non-oil Export Nose-dived in 2014’

Notwithstanding the clamour for the diversification of the Nigerian economy, the Nigerian Export Promotion Council (NEPC), yesterday said the country’s export nose-dived in 2014 as against predictions.

Speaking at a forum for Strategic Agricultural Commodities, Executive Director and Chief Executive Officer of NEPC, Mr. Olusegun Awolowo, said high cost of doing business in Nigeria remains a critical obstacle.

Awolowo, who was represented by NEPC Deputy Director, Product Development, Mr. William Ezeagu, explained that the country must expedite action in order to turn the tide to a favourable export regime.

He stated: “Nigeria’s non-oil export for the Year 2014 stood at US$ 2.714 billion. This figure gave a decrease of 8.62 per cent when compared to US$ 2.970 billion which was recorded for the Year 2013 but an increase of 5.97 per cent against year 2012 performance.

“The fall in export in the Year 2014 against 2013 could be attributed to the following: disruption in the implementation of the Export Expansion Grant (EEG) as a result of uncertainty in the utilisation of the Negotiable Duty Credit Certificates (NDCC) and the high cost of doing business in Nigeria as a result of high cost of borrowing.”

Awolowo added that “inadequate infrastructural facilities such as power and expensive telecommunication facilities also contributed.”

However, Executive Secretary of Nigerian Investment Promotion Commission ( NIPC ), Mrs Uju Hassan Baba, said for Nigeria to realise sustainable growth “enabling sectors like power, transport and other infrastructure will improve productivity and competitiveness in the economy.”

She explained that such infrastructure is necessary for revamping “critical sectors of the economy like industry, agriculture, services, in order to expand national output, diversify exports, cut imports and increase government income.”

Hassan Baba stressed that NIPC will continue to strengthen capacity and promote agro commodity business that will be geared towards creating wealth and job opportunities.”

There were also presentations from the Ministry of Agriculture, the private sector and other key stakeholders.