Export Of Non-Oil Products Fetches Nigeria $5.14bn Foreign Exchange

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The export of non-oil products has boosted Nigeria’s foreign exchange earnings by $5.14bn, analysis of figures obtained from the Central Bank of Nigeria has revealed.

The $5.14bn, according to analysis by THE WHISTLER was earned within a 12 months period covering April last year to March this year.

The Federal Government had said it was targeting between foreign exchange earnings of between $30bn and $150bn within the next ten years through the implementation of the zero-oil plan

Through the zero-oil plan, the government through the Nigeria Export Promotion Commission had identified 22 priority countries as markets for Nigerian products while 11 strategic products with high financial value have also been identified to replace oil.

These products are palm oil, cashew, cocoa, soya beans, rubber, rice, petrochemical, leather, ginger, cotton, and Shea butter.

But analysis of documents obtained from the apex bank showed that the non-oil export receipts came largely from manufactured products, driven by increased receipts from plastics, textiles, foot wear, drugs and pharmaceutical products, wood products, metals and metal products, electrical and electronics, and other manufactured products.

Sectoral analysis by this Newspaper of the non-oil export receipts showed that proceeds from minerals, industrial and manufactured products accounted for the bulk of the non-oil foreign exchange earnings.

For instance, between July and September last year, total non-oil export earnings amounted to $1.62bn, representing an
increase of 1.2 per cent and 95.1 per cent relative to the levels at the end of the preceding quarter and corresponding period
of 2018, respectively.

The development, relative to the preceding quarter’s level, was attributed, largely, to the 82.6 per cent, 82.4 per cent and 33.3 per cent increase in receipts from the agricultural, food products and transport sub-sectors, respectively.

Sectoral analysis further showed that proceeds from the industrial, manufacturing and minerals sub sectors fell by 23.5 per cent, 21.1 per cent and 19.5 per cent, respectively.

The decrease in the non-oil export receipts from manufactured products was driven, majorly, by plastics, footwear, soap and
other detergents, furniture and wood, glass and glass products, drugs and pharmaceutical products, electronics and other manufactured products.

Further analysis revealed the shares of the various sectors in non-oil export proceeds to include agricultural products, 34.2 per cent; industrial sector, 27.6 per cent; minerals, 23.4 per cent; manufactured products, 9.5
per cent; and food products, 5.3 per cent.

Between October and December last year, total non-oil export earnings amounted to $960m, representing a decrease of 37.8 per cent and 12.7 per cent relative to the levels at the end of the preceding quarter and corresponding period of 2018, respectively.

The development, relative to the
preceding quarter’s level, was attributed, largely, to the 86.2per cent and 65.7 per cent decline in receipts from minerals sector and food products to $52.26m and $50.53m, respectively.

Further analysis showed that proceeds from the agricultural, manufactured products and the industrial sector fell by 27.3, 15.6 and 2.8 per cent, respectively, below the levels in the preceding quarter to $345.86m, $ and $402.73m, respectively.

Receipts from the transport sector increased by 33.3 per cent over the level in the preceding quarter to $0.08m.

The decrease in the non-oil export receipts was driven, majorly, by minerals (processed and unprocessed) and food products including fish, alcoholic and non-alcoholic drinks and other food items.

The shares of the various sectors in non-oil export proceeds were industrial sector, 42.0 per cent; agricultural products, 36.0
per cent; manufactured products, 11.3 per cent; minerals, 5.4 per cent; and food products, 5.3 per cent.

Further analysis showed that between January and March this year, showed that total non-oil export earnings during the
review period amounted to US$1.21bn, representing an increase of 26.9 per cent relative to the level in the preceding quarter, but a decrease of 77.6 per cent relative to the level in the corresponding
period of 2019.

The development, relative to the preceding quarter’s level, was attributed, largely, to the rise in the export receipts from manufactured products, driven by increased receipts from plastics, textiles, foot wear, drugs and pharmaceutical products, wood
products, metals and metal products, electrical and electronics, and
other manufactured products.

Sectoral analysis showed that proceeds from minerals, industrial and manufactured products rose by 107.6 per cent, 46.4 per cent and 42.5 per cent to US$7.12m, $769.08m and $130.55m, respectively, above the levels in the preceding quarter.

Receipts fromfood products and the agricultural sector fell by 24.6 per cent and 7.4 per cent to $21.39m and $284.23m, respectively, below the levels in the preceding quarter.

The decline in the food products
sub-sector was attributed to the fall in receipts from wheat and fish.

The shares of the various sectors in non-oil export proceeds were industrial sector, 63.4 per cent; agricultural products, 23.4 per cent;
manufactured products, 10.8 per cent; food products, 1.8 per cent and minerals, 0.6 per cent.

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