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Nigeria saves N4.2trillion on manufactured goods importation – Aganga

By on April 26, 2013

Nigeria has recorded a significant improvement in its import trade figures as it saved N4.2tn in 2012 owing to a decrease in the importation of manufactured goods.

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, disclosed this during the opening ceremony of the ministerial session of the National Council on Industry, Trade and Investment, in Ibadan, Oyo State, on Thursday.

Aganga further revealed at the meeting with the theme, ‘Industrialisation as the driver of economic development, revenue diversification and wealth creation,’ that the country saved about N817bn due to a decline in the importation of textile, cement and vegetable oil within the same period.

He said, “In terms of trade, we have done very well. Nigeria’s external trade fell by 4.3 per cent, from N29tn to about N28tn in 2012. However, the good and exciting news is that the fall was as a result of a sharp decrease in the value of import from about N9.8tn to about N5.6tn by the end of 2012. That was a decrease of about 43 per cent in savings of more than N4.2tn, which has gone to the increase in the foreign reserves of our country.

“The last time that we had such a big fall in import, for a country that is largely import dependent, was in 2008; and that fall was about N1tn. This shows in real sense, a decreasing over-reliance on import for domestic consumption and a significant savings on our foreign exchange. That is why foreign exchange is going up.

“Specifically, for vegetable oil production, import fell from about N1tn to about N577bn; textile imports fell from about N190bn to N94bn, representing about 82 per cent decrease; while cement import fell from about N219bn to about N27bn. In total, these three sectors only contributed to more than N817bn to our foreign reserves because we are less dependent on import.”

The minister noted that the country also recorded significant improvement in non-oil revenue earnings within the last seven years with the non-oil sector accounting for 30 per cent of the nation’s revenue earnings in 2012, as against 15.5 per cent recorded in 2005.

He said, “Now, if you look at our exports, the figure has gone up by 15.5 per cent from about N19.4tn to about N22.4tn in 2012. In terms of oil and non-oil revenue, in 2005, oil revenue contributed about 94 per cent of our foreign earnings, while the non-oil sector contributed only six per cent.

“If you look at the same statistics in 2012, the oil sector contributed about 69 per cent while the non-oil sector contributed 30 per cent.”

As part of efforts towards diversifying the nation’s economy, enhance job creation and wealth generation, Aganga said his ministry had begun the implementation of its Nigerian Industrial Revolution Plan, based on areas where the country had comparative and competitive advantage.