The Nigerian Customs Service (NCS) has underscored its dedication to enhancing the non-oil export sector as a pivotal element in the country’s economic diversification and growth. This commitment was articulated during the 7th Annual General Meeting of the Manufacturers Association of Nigeria Export Promotion Group, where officials emphasized the importance of trade facilitation. Ajibola Odusanya, the Comptroller of the Lilypond Export Command, highlighted the command’s significant role in promoting non-oil exports, claiming that it has facilitated the processing of goods worth over $600 million. This focus on export trade is seen as vital for stimulating production, attracting investment, and creating jobs in today’s competitive global market.
Odusanya elaborated on several reforms initiated by the NCS to streamline export procedures, which aim to minimize bureaucratic delays and enhance efficiency. For example, the Time Release Study has been introduced to assess customs clearance efficiency, while the Authorised Economic Operator program allows certified manufacturers to benefit from expedited export processes. The command’s ability to process over 300 containers valued at over $200 million in just one year exemplifies the impact of these reforms. By reducing the number of physical inspections and simplifying the clearance process, the NCS aims to make Nigerian exports more competitive on the global stage.
Despite the positive strides made, challenges remain for exporters in Nigeria. Odiri Erewa-Meggison, Chairman of the Manufacturers Association of Nigeria Export Promotion Group (MANEG), acknowledged the government’s recent reforms but appealed for additional support to alleviate the financial strains faced by exporters. Rising production costs, exacerbated by the removal of fuel subsidies and increased energy tariffs, have created a challenging environment for manufacturers. Furthermore, issues such as naira depreciation and foreign exchange scarcity hinder competitiveness in international markets. Erewa-Meggison also urged the government to reconsider the exclusion of 34 exporters from the Promissory Notes program, indicating that restoring these exporters’ access to incentives would boost their operational confidence.
Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), reaffirmed the crucial role of non-oil exports in achieving a favorable trade balance for Nigeria. However, he pointed out the inconsistent implementation of government incentives designed to boost the export sector. He called for a more effective execution of existing policies while also highlighting that contradictory regulations from other government agencies often obstruct the growth of exports. To foster a more competitive manufacturing environment, Meshioye emphasized the need for the rapid deployment of the government’s stabilization plan to tackle the exchange rate challenges and rising production costs faced by exporters.
Professor Segun Ajibola, the former President of the Chartered Institute of Bankers of Nigeria, provided critical insights during the event, arguing for the necessity of strategic incentives to bolster non-oil exports and reshape Nigeria’s trade policies. He advocated for a comprehensive overhaul of trade and industrial policies, proposing the formulation of new regulations that prioritize local manufacturing and restrict the importation of non-essential goods such as biscuits and textiles. Ajibola’s perspective underscored the detrimental effects of Nigeria’s heavy reliance on imported goods, emphasizing the need for policy adjustments that can foster domestic industries and improve trade balances.
Ajibola highlighted that removing duties on imported raw materials is essential to support local manufacturers effectively. By granting waivers for essential raw materials, the government can enhance the capacity utilization of domestic manufacturers and help keep production costs lower. This strategy would ultimately contribute to strengthening the non-oil export sector, allowing businesses to compete more effectively in international markets. By aligning trade policies with the needs of manufacturers, the Nigerian government can facilitate a more vibrant export economy, fostering both economic growth and diversification in the long run. The overall call to action from stakeholders emphasizes the necessity of a collaborative effort between government regulations and manufacturing capabilities to unlock the full potential of the non-oil export sector.
