Nigeria’s manufacturing export plunges by 166% to ₦778b – World bank
NIGERIA’S manufacturing export earnings has decreased by 166 percent to ₦778.4 billion, from ₦2.trn in 2019.
The World Bank’s ‘Africa Pulse’ report, shows a negative trend from 2019.
COVID-19 caused a large decrease to ₦960.7bn in 2020, with a modest recovery in 2021 at ₦1.15 trillion.
However, in 2022, there was a large decline to ₦781.1 billion, followed by another drop to ₦778.4 billion in 2023.
The apex bank particularly attributed the country’s declining foreign commerce to bad infrastructure and inefficient logistics, among other causes.
According to the survey, the cost of trading in Nigeria and Ethiopia is four to five times greater than in the United States, owing to insecurity, higher transportation expenses, geography, and inadequate road infrastructure.
“Studies from the Africa region consistently find spatial differences in prices of imported goods (food and non-food) as well as non-traded agricultural staples, indicating that markets are not well-integrated, and retail prices of products are affected by distance.
“For instance, trade costs are four to five times higher in Ethiopia and Nigeria than in the United States, due to poor road infrastructure, low competition in the transportation sector, and topography,” it stated.
The survey also observed that as a result of these distortions, African producers prefer to sell locally rather than export.
Manufacturers and operators in the export ecosystem have complained that the country’s severe business environment makes local products uncompetitive globally.
The bank’s report comes after the Nigerian Export Promotion Council (NEPC) urged Nigerian exporters to comply with the regulations for exporting items to various nations.
The Executive Director of NEPC, Nonye Ayeni, stressed the need of exporters adhering to the General Administration of Chinese Customs (GACC) during a recent sensitization session targeted at increasing Nigeria’s export potential and developing commercial relations with China.
Ayeni, represented by the council’s North-Central Coordinator, Samson Idowu, stated that the GACC has clear but stringent regulations for exporting products to China.
“Understanding the registration process, documentation and regulatory changes is paramount for successful export. Understanding the requirements set forth by GACC is crucial for Nigerian exporters to ensure smooth and successful trade with China,” she stated.
At the recent introduction of the NSW project in Abuja, President Bola Tinubu stated that Nigeria now loses over $4 billion per year owing to import-export breaches caused by bureaucratic inefficiencies, particularly at ports.
According to the president, the NSW project would ensure 24-hour clearance of products at ports and ease trade by establishing a digital platform for all import and export transactions.
“This initiative will link our ports, government agencies, and key stakeholders, creating a seamless and efficient system that will facilitate trade like never before. It will reduce the need to deal with multiple agencies in multiple locations to obtain the necessary papers, permits and clearances to complete their import or export processes,” Tinubu said.
