Monday, April 15, 2013

Overview of the Non-Oil Export Industry in Nigeria from 2009-2012

Click on the graphics to enlarge.

The Non-oil export industry in Nigeria is a latent gold waiting to be explored. The potential of this industry at present is still largely untapped. The major players in the commodity export business in Nigeria are the Asians, while the small and medium scale exporters are largely Nigerians.

The data obtained via from the quarterly report of the Central Bank of Nigeria 2009 to 2012 revealed that the non-oil export industry in Nigeria is currently growing at an average rate of about 23% annually. According to this data, the average volume of all the exported items comes to about $2.5 Billion annually. 


It is also worthy of note to realize that Nigeria mainly exports commodities and unfinished goods with Agricultural commodities being the major item of export and taking up more than 20% of the total items exported. However, we have not fully utilized our capacity for Agricultural production. This is because, In Nigeria today, more than 70% of Nigerian farmers are peasant farmers, the Nigerian Agricultural Post-Harvest losses have been put at 30-50% of the total farm produce yearly by the Food and Agricultural Organisation (FAO) and less than 40% of our arable land is under cultivation. All these short comings go a long way to tell us that there is still a very large room for improvement.

Another sector where we have great potential to increase our output as a nation is the solid mineral sector. Although Nigeria has billions of tonnes in deposit of different exportable solid minerals, however, less than 100,000 tonnes are being exported annually and this is contributing less than 10% of the annual volume of items exported out of Nigeria.

The contributions of the other sectors including manufacturing is just about 10% also and most of our finished goods are mainly exported to West African countries. Very few go to Europe and America. This is probably due to the fact that very few companies are able to meet the standards set by these nations.

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