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FG’s diversification, trade policies boost export growth to N6.9trn

The federal government Tuesday revealed that trade facilitation programmes of the current administration have increased the country’s trade balance to N6.5trillion in the second quarter of 2024.

It also said efforts to maximise economic opportunities through increased exports, accounted for 60.89 per cent, or N19.42tn of total trade, a figure that represents a slight increase of 1.31 per cent from N19.17 trillion in the first quarter of 2024, and a 201.76 per cent rise from N6.44 trillion in the second quarter of 2023.

This was disclosed by Vice President Kashim Shettima during the 3rd National Conference on Non-Oil Export, organised by the Nigerian Export Promotion Council (NEPC), themed “Promoting Non-Oil Export for Rapid National Economic Growth,” in Abuja.

NESG data

Blueprint reports that data by the National Bureau of Statistics (NBS) and sourced from the website of the Nigeria Economic Summit Group (NESG) shows “the external trade value stood at N31.9 trillion in 2024Q2, rising from N12.7 trillion in 2023Q2.

“This was driven by the growth in exports, which outpaced that of imports, resulting in a trade surplus of N6.9 trillion in 2024Q2 – a significant improvement relative to a trade surplus of N0.13 trillion and N5.2 trillion recorded in 2023Q2 and 2024Q1, respectively.

“However, external trade declined by 3.8 percent quarter-on-quarter from N33.1 trillion in 2024Q1. Meanwhile, the total value of goods exported rose sharply from N6.4 trillion in 2023Q2 to N19.4 trillion in 2024Q2, attributable to the increase in oil exports and non-oil exports. The oil exports mainly benefitted from elevated global oil prices and increased domestic crude oil production, which averaged US$86.6/barrel and 1.4 million barrels/day, respectively, in 2024Q2.

“On the flip side, the value of imported commodities rose sharply to N12.5 trillion in 2024Q2 from N6.3 trillion in 2023Q2, attributable to the increase in import bills across the various tradable items. The most significant increase was recorded in favour of mineral fuel, which accounted for 35 percent of total imports in 2024Q2. Nigeria’s dependence on imported fuel stood at 80 percent of local fuel consumption, exposing the country to logistics and supply chain vulnerabilities,” Blueprint further gathered.

…Shettima speaks

And speaking at the event, Vice President Shettima, represented by Deputy Chief of Staff to the President, Senator Ibrahim Hadejia,  provided  some insights into how Nigeria and Africa as a continent,  could maximise the vast economic opportunities available at the international market.

He said: “For Nigeria to improve its trade balance, effective implementation of the country’s trade policy is essential.”

“With the trade policy, we aim to significantly increase the contribution of the trade sector to GDP and grow Nigeria’s share of global trade. It is encouraging to report that Nigeria’s total external trade achieved a surplus of N6.5tn in Q2 2024, with exports comprising 60.89 per cent, or N19.42tn—marking a 1.31 per cent rise from Q1 and a 201.76 per cent increase from Q2 2023,” added Vice President Shettima.

While underscoring the importance of global trade to achieve economic prosperity, he said: “For instance, global trade is projected to reach $32tn by the end of 2024.
The question we should ask is how Nigeria and Africa can fully capitalise on these enormous opportunities.”

The VP also expressed the readiness of the  Tinubu administration to initiate  reforms towards achieving a  seamless trade and facilitating business for the micro, small, and medium enterprises (MSMEs), among others.

“This administration is committed to positioning Nigeria as an economic force by fostering policies that promote locally made products, enhance market access, increase competitiveness in international markets, and stimulate job creation,” Shettima explained.

He further said: “With Nigeria’s participation in the African Continental Free Trade Agreement, which opens access to a market of 1.4 billion, relevant stakeholders must help Nigerian entrepreneurs overcome challenges to maximise AfCFTA opportunities. Nigeria cannot afford to be a dumping ground for substandard goods.”

Shettima added that economic diversification remains a top priority for the administration, by reducing the country’s reliance on oil and gas and promoting value-added manufactured exports.

In her address of welcome, Executive Director/CEO NEPC Nonye Ayeni, said: “We are focused on creating market access, reducing export costs, and streamlining logistics,” pointing out that the non-oil exports had risen by 6.7 per cent.

She said the agency had gone into strategic partnerships with the Nigeria Customs Service (NCS), the Nigerian Ports Authority (NPA), and the Nigerian Agricultural Quarantine Service (NAQS) to make for easy export processes.

On product rejections often experienced by the Nigeria’s exporters, she said the NEPC had similarly partnered the World Trade Organisation (WTO) and International Trade Centre (ITC) to ramp up the quality of key non-oil exports.