Improving Nigeria’s non-oil exports

The push to diversify Nigeria's export output away from its heavy dependence on oil continues, with the recent launch of Nigeria's yam export program to Europe. While non-oil exports have shown some improvement since the lows of 2016, there is still a significant gap compared to the levels recorded in 2014 and 2015. Nonso Obikili, Project Manager at the National Competitiveness Commission of Nigeria, shed light on the challenges and opportunities surrounding Nigeria's efforts to boost non-oil exports. Obikili highlighted the progress made in agriculture, pointing out that the devaluation of the currency has made Nigerian products more competitive in the international market. This has led to increased food exports to other West African countries. However, he noted that despite the improvements in agriculture, crude oil continues to dominate Nigeria's export profile, accounting for 95% of total exports. Other manufactured products are largely absent from the export scene, posing a risk to the country's export stability. When questioned about Nigeria's competitiveness as an exporter of agricultural products, Obikili expressed concerns about the country's performance. He stated that while agriculture should theoretically be a strong export sector for Nigeria due to its natural climate advantages, the country is not excelling in any particular agricultural product. Low agricultural yields, inadequate infrastructure, small farm sizes, and limited technological investments were cited as factors contributing to Nigeria's lack of competitiveness in agriculture. Obikili emphasized that Nigeria's struggles in agriculture were indicative of broader economic challenges. With the country lagging behind in agricultural productivity, the prospects for diversifying into other export sectors appear bleak. The project manager emphasized the importance of addressing these fundamental issues in agriculture before venturing into other export industries. In terms of the timeline for non-oil exports to significantly contribute to Nigeria's export mix, Obikili painted a sobering picture. While recognizing the importance of adding value to raw materials, he cautioned against over-reliance on this strategy. He cited examples of successful African countries that import raw materials for their manufacturing industries, highlighting the efficiency and cost-effectiveness of this approach. Obikili suggested that Nigeria should reconsider its current strategy, which emphasizes using natural resources like tomatoes and cashews to drive industrialization. Despite the challenges and the long road ahead, Obikili remained pragmatic about the prospects for boosting Nigeria's non-oil exports. He acknowledged that achieving a substantial shift from oil to non-oil exports would be a tough task, even with the right policies in place. The focus on value addition to raw materials may not be sufficient to propel Nigeria's export sector forward in the global market. A more nuanced approach that considers global market dynamics and efficiency in resource utilization may be necessary for Nigeria to make significant strides in non-oil exports. As Nigeria continues its drive to diversify its export base and reduce its reliance on oil exports, addressing the underlying issues in agriculture and exploring innovative strategies for non-oil sectors will be critical. The journey towards a more balanced export portfolio will require concerted efforts from the government, businesses, and other stakeholders to overcome the challenges and seize the opportunities in the evolving global trade landscape.