Paragraph 1: Nigeria’s Non-Oil Export Sector Demonstrates Resilience and Growth
Nigeria’s non-oil export sector showcased remarkable resilience in the first quarter of 2025, achieving substantial growth despite the prevailing global trade tensions. According to data released by the Nigerian Export Promotion Council (NEPC), non-oil exports surged by 24.75%, reaching $1.791 billion compared to $1.436 billion in the same period of 2024. This positive trajectory signifies the effectiveness of ongoing economic diversification efforts, reducing reliance on crude oil and fostering growth in other sectors. The impressive performance underscores the potential of non-oil exports to drive sustainable economic development and enhance Nigeria’s global competitiveness.
Paragraph 2: Expanding Product Diversity and Export Destinations
The growth in non-oil exports is not only reflected in the monetary value but also in the diversification of products and expansion of export destinations. The number of distinct products exported rose to 197, up from 162 in the first quarter of 2024, encompassing a wide range of manufactured goods, semi-processed items, industrial extracts, and agricultural commodities. This diversification demonstrates the growing capacity of Nigerian businesses to produce and export a broader range of goods, catering to diverse international markets. Furthermore, ten member countries of the Economic Community of West African States (ECOWAS) actively imported Nigerian products, highlighting the increasing regional integration and trade within Africa.
Paragraph 3: Leading Export Products and Companies Drive Growth
The non-oil export growth was propelled by key products and companies that played a significant role in driving export earnings. Cocoa beans and its derivatives emerged as the leading export commodity, accounting for 45.02% of total non-oil exports, followed by Urea/Fertilizer (19.32%) and Cashew Nuts (5.81%). This highlights the strength of Nigeria’s agricultural sector and its potential for further growth and value addition. Indorama Eleme Fertilizer and Chemical Limited and Starlink Global & Ideal Limited retained their positions as the top two exporting companies, respectively, contributing significantly to the overall export value through fertilizer and cocoa products.
Paragraph 4: Expanding Trade Relationships and Regional Integration
Nigeria’s non-oil exports extended beyond ECOWAS, reaching other African countries and global markets. Exports to other African countries totaled $32.732 million, showcasing the potential of intra-African trade under the African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA aims to create the world’s largest free trade area, connecting 55 African countries and fostering greater economic integration and trade within the continent. The NEPC, in collaboration with stakeholders and the Federal Ministry of Industry, Trade and Investment, is actively working to position Nigeria as a key player in the AfCFTA, leveraging the agreement’s opportunities to boost non-oil exports and enhance regional trade.
Paragraph 5: Navigating Trade Challenges and Fostering Value Addition
The imposition of a 14% trade tariff by the United States on certain Nigerian products presented a challenge but also an opportunity. The Nigerian government, through the NEPC and other agencies, is engaged in bilateral trade negotiations with the US to address the tariff issue and ensure favorable trade terms. The NEPC views the tariff as a catalyst for promoting value addition within Nigeria’s export sector, encouraging businesses to enhance the quality and competitiveness of their products in the global market. Focusing on value addition will not only mitigate the impact of tariffs but also boost the overall value of Nigerian exports, contributing to greater economic growth and diversification.
Paragraph 6: Strengthening Financial Infrastructure and Export Facilitation
The growth in non-oil exports is supported by a robust financial infrastructure and streamlined export processes. A total of 485 NXP (Nigerian Export Proceeds) forms were processed involving 28 banks in the first quarter of 2025, indicating the active participation of the financial sector in facilitating export transactions. Zenith Bank Plc, First Bank of Nigeria Plc, and Guaranty Trust Bank Plc were the leading banks in terms of NXP transactions, providing essential financial services to exporters. Furthermore, multiple exit points, including seaports, airports, and land borders, were utilized for exporting non-oil products, demonstrating the efficiency of logistics and trade facilitation. The NEPC’s proactive efforts to create market access and connect Nigerian exporters directly to international markets are further contributing to the growth and diversification of the non-oil export sector.
