Nigeria’s Total External Trade Rises to N6.9tn in Q2, Says Shettima
Vice President Kashim Shettima has stated that trade facilitation programmes implemented by the current administration increased the country’s trade balance to N6.5tn in the second quarter of 2024.
He said efforts to maximise economic opportunities ensured that exports to other countries accounted for 60.89 per cent, or equivalent to N19.42tn of total trade, representing a marginal increase of 1.31 per cent to N19.17tn in the first quarter of 2024 and a 201.76 per cent increase from N6.44tn recorded in the second quarter of 2023.
He said these at the 3rd National Conference on Non-Oil Export organised by the Nigerian Export Promotion Council on Tuesday in Abuja.
The event was themed, “Promoting Non-Oil Export for Rapid National Economic Growth.”
According to the National Bureau of Statistics, Nigeria’s foreign exchange earnings grew in the second quarter of 2024 based on strong export performance as the foreign trade surplus increased to N6.95tn.
A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports.
Despite this figure, Shettima stressed that Nigeria cannot afford to be a dumping ground for all sorts of substandard goods rejected in other countries.
The Vice President, represented by the Deputy Chief of Staff, Office of the Vice President, Senator Ibrahim Hadejia, emphasised how Nigeria and Africa can maximize these huge economic opportunities offered by the mere exchange of goods and services in the global market.
Also speaking on the need for Nigeria to improve its balance of trade and reduce the over-dependence of the national economy on oil and gas, Shettima explained that “for Nigeria to improve its balance of trade, there is a need to ensure the effective implementation of the country’s trade policy.”
“With the trade policy, we intend to substantially increase the contribution of the trade sector to the GDP and increase Nigeria’s share of global trade, it is cheering to state here that the country’s total external trade recorded a trade balance of N6.5tn in the second quarter of the year 2024, out of which exports accounted for 60.89 per cent, or equivalent to N19.42tn, representing a marginal increase of 1.31 per cent compared to N19.17tn in quarter one 2024, and a 201.76 per cent rise over the N6.44tn in the second quarter of 2023.”
He added, “A cursory analysis shows that in today’s global economy, trade is the determining factor for any nation that desires prosperity for its citizenry, the reasons are not far-fetched, from the extractive industries, agriculture, to e-commerce and trading services, particularly the creative industries, the opportunities are there for those who wish to explore it.
“For example, global trade is estimated to reach $32tn by the end of this year, 2024. The question we should be asking is how Nigeria and Africa can maximize these huge economic opportunities offered by the mere exchange of goods and services in the global market.”
Shettima further expressed that to maximise huge economic opportunities offered by the mere exchange of goods and services in the global market, the Federal government will strengthen and reform regulations to enhance seamless trade.
“We intend to strengthen and reform all regulatory frameworks that will not just facilitate seamless trade, but enhance the ease of doing business, particularly for micro, small, and medium entrepreneurs, MSMEs, and business owners.”
“More importantly, with Nigeria as a signatory to the African Continental Free Trade Agreement, boosting about 1.4 billion markets, there is a need for relevant stakeholders from both the public and organized private sector to provide solutions to the myriad of challenges that are likely to inhibit Nigerian entrepreneurs from maximizing the opportunities offered by the AFCTA, we cannot afford to be a dumping ground for all sorts of goods,” he lamented.
He said the diversification of the economy remains a top priority of this administration and to reduce the over-dependence of the national economy on oil and gas by promoting the export of value-added manufactured products.
“As we strive to develop a flourishing domestic market that is competitive and fully integrated into the global economy, this administration remains resolute in its quest to position the country as a strong economic force by formulating policies and adopting measures that will promote and increase patronage of made-in-Nigeria products, enhance market access, increase the competitiveness of the country’s products in the international market so that we can boost job creation and reduce unemployment.
“I wish to use this opportunity to reiterate that as a signatory to several trade agreements, Nigeria will continue to dialogue on improving and strengthening trade and investment opportunities as enshrined in the numerous bilateral and multilateral trade agreements between Nigeria and other countries,” he finally stated.
Speaking in her welcome address, the Executive Director/Chief Executive of the council, Nonye Ayeni, stated that non-oil exports had increased by 6.7 per cent.
While expressing her views on the activities of the council, Ayeni stated that the council is involved in creating market access for products, reducing the cost of exportation and minimizing the logistics challenges exporters encounter during exportation.
“We are looking at creating market access for our products and then reducing the cost of exportation via exporters and also minimizing the logistic challenges that exporters experience as they export.”
“So it’s a recognition of this fact that NEPC has come up with various initiatives and programs to address these challenges.”
“We’ve been pushing through to see the volume of export increase, and it’s interesting to note that in the first half of this year, the non-oil export increased by 6.7 per cent year on year, half year by half year, back to N2.7bn. And this is just the tip of the iceberg, and you agree with me that what we are recording is just the ones that are documented,” she stated.
Ayeni further explained that the NEPC has established a strategic partnership with key agencies, including the Nigeria Customs Service, the Nigerian Ports Authority, and the Nigerian Agricultural Quarantine Service to streamline the export process, ensuring that goods are transported directly to the port without any delays or disruptions, thereby facilitating smoother and more efficient export operations for Nigerian businesses.
“We really can’t do much for top exporters, because they understand their business, they have the market. But there are logistic challenges.
“So we work with customs, NPA, NAQS, and other agencies. We are working to operationalize the deal, to make the domestic export warehouse a one-stop shop, where exporters can come, drop their goods, and then every agency will stamp it, and the goods are exported straight to the port without disturbance,” she said.
