Nigeria targets $30bn non-oil revenue annually

Nigeria's Federal Government is embarking on an ambitious plan to significantly increase non-oil export revenue, aiming to generate an additional $150 billion in earnings over the next decade. This initiative, known as the Zero Oil Plan (ZOP), is designed to boost export activities and reduce the country's dependence on oil revenues. However, experts and industry stakeholders have raised concerns about the feasibility and challenges associated with achieving these targets. In a recent interview on CNBC Africa, Olusegun Awolowo, Executive Director of the Nigeria Export Promotion Council, and Obiora Madu, CEO of Multimix Academy, discussed the obstacles hindering Nigeria's non-oil export sector. One of the key issues highlighted was the lack of incentives and access to finance for exporters. Despite the potential for growth, exporters are facing numerous challenges that are impeding their ability to capitalize on export opportunities. Additionally, the country's export infrastructure, including transportation, storage facilities, and packaging, remains underdeveloped and inadequate. These factors are contributing to the low competitiveness of Nigerian products in international markets. Another major obstacle is the stringent quality control and regulatory requirements imposed by agencies such as the Standards Organization of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC). These agencies play a crucial role in certifying the quality of agricultural produce and ensuring compliance with global standards. However, the bureaucratic processes and inefficiencies within these agencies have been cited as barriers to export growth. The lack of a streamlined certification process and the need for multiple certificates from different agencies are adding complexity and cost to export transactions. As a result, many exporters are struggling to meet the necessary requirements and compete effectively on the global stage. The interview also highlighted the challenges related to intra-African trade and the logistics infrastructure in Nigeria. Poor transport systems and high transaction costs are hindering trade within the continent, making it difficult for Nigerian exporters to access regional markets. The issue of market access and product quality were identified as critical factors affecting Nigeria's export performance. To address these challenges, stakeholders emphasized the need for a comprehensive strategy that focuses on improving export capacity, facilitating access to finance, and enhancing the efficiency of export processes. The importance of setting measurable goals and implementing a structured plan to monitor progress was underscored as essential for achieving sustainable export growth. Despite the obstacles facing the non-oil export sector, there was a consensus among the interviewees that with concerted efforts and effective policies, Nigeria has the potential to increase its non-oil revenue significantly. However, urgent actions are required to streamline export procedures, enhance product quality, and support exporters with the necessary incentives and financing to unlock the full potential of the sector.