Don't Miss


Home   >   Business   >   Industries   >   Economy   >   Create environment for non-oil exports – Stakeholders tell government

Create environment for non-oil exports – Stakeholders tell government

By on July 5, 2014

Stakeholders in the non-oil sector have called on the Federal Government to address certain issues that will enhance investment in the sector.

These issues, they say, include activating the Export Development Fund with a view to addressing pre-shipment incentives to Small and Medium Enterprises, increased access to export financing, designation of export terminals at the seaports to ease congestion and a review of the Export Expansion Scheme.

Others are improved product standardisation as well as a conducive and stable export policy environment.

According to the Executive Director, Nigerian Export Promotion Council, Mr. Segun Awolowo, for Nigeria, as the largest economy in Africa, to diversify and enhance the competiveness of its products globally, these issues must be addressed.

“The world is looking unto emerging markets in Africa and indeed Nigeria for diversified products. There is no better time than now to critically address issues that will enhance the competitiveness of made -in-Nigeria products. The issue of global competitiveness is germane and must be addressed in all frontiers with a view to actualising the increase of non-oil exports exponentially,” he said.

Awolowo and other stakeholders spoke at the Annual General Meeting of the Nigerian Chambers of Commerce, Industry, Mines and Agriculture, themed, ‘Improving Nigeria’s competitiveness in the global market: panacea for growth and development of the non-oil export’, recently.

They said despite the steady growth in non-oil export, with a value of $2.979bn recorded in 2013, the country’s export was still dominated by oil.

“Non-oil export potential is not fully exploited. Nigeria is endowed with natural resources including solid minerals and agricultural produce but some of these products are mostly exported in primary forms, with poor infrastructure, energy and finance still posing challenges that impede the development and growth of the sector,” Awolowo said.

The President of NACCIMA, Alhaji Mohammed Abubakar, said there was a need for the country to align with current global trend to enhance her competitiveness by re-focusing and re-strategising through diversification of her economic base to non-oil export products.

He added that this was necessary for ensuring the successful growth and development of the economy for it to continue to be competitive and relevant in the global marketplace.

He said, “To achieve this feat of boosting non-oil exports in the country, with a view to making the sector vibrant and competitive in terms of exportable products and revenue generation, the government must be ready to demonstrate the political will by ensuring the provision of the desired enabling environment, including of course adequate infrastructure and incentives to encourage the production of quality goods and services in Nigeria to facilitate a competitive export-oriented manufacturing sector.

“Creating an enabling environment for non-oil export to thrive, has become necessary considering the continued efforts by governments at all levels in respect of the various ongoing policies and programmes directed at growing and developing the national economy. These efforts are made through the promotion and improvement of Nigeria’s competiveness in the global market place to diversify the economy away from a mono-product oil sector to the promotion of non-oil exports.”

According to him, in today’s global markets, every business is pitted against worldwide competitors with consistently improving productivity, better performance, and shrinking prices.

Abubakar said the significant, long-term problems facing the country’s economy required major shifts in mindset and consistent adaptation to new societal shifts that would serve as panacea for boost non-oil export growth.

“Indeed, to continue to remain competitive in the global markets, it is important to keep investing in capacity building of local manufacturing jobs. This does not mean replacement of the old-style, labour-intensive factory jobs; those have already disappeared in the last century.

“The prevailing wisdom of lower-cost, higher-volume manufacturing is clearly wrong. It is not just a question of “manufacturing” jobs. What is needed is new job creation with high-tech, high-value, innovative, non-commodity items, which can be made a reality and effective through the joint efforts of governments and the private sector operators, in a manner that would stimulate non-oil sector activities.” He added.

He said these would enhance the prosperity of businesses as well as citizens and improve balance of payments position of the country.

According to him, achieving the desired growth in the non-oil export sector will invariably result in the establishment of border markets at some strategic locations; adequate funding of non-oil commodities; development of infrastructural deficiency and provision of logistics to support supply value chain.

He added that it would also increase dominance of primary commodities, strengthen productive capacity and boost the empowerment of SMEs through entrepreneurship.

Abubakar also called for a positive mindset among the masses, adding that one of the hurdles the country needed to scale to achieve better ranking was the poor perception of the country by its citizens.

“We say every awkward or undesirable occurrence happen “only in Nigeria.” We habitually dismiss whatever progress we make. We expect so much from the country. But we are not disposed to acknowledging the little or much we have achieved because we are Nigerians,” he said.

The Governor of Ogun State, Senator Ibikunle Amosun, whose state hosted the AGM, said commerce and industry were the bedrock of any economy and that the real sector had not contributed largely to the country’s Gross Domestic Product.

He reiterated the need for value chain to boost export of non-oil products as well as increased processing of raw materials.

 

 

[Punch]