The West Africa sub-region is a huge market with huge potential for
growth if it is well harnessed by the member states. The countries within the
region came together in 1975 to form the union called The Economic Community of
West African States (ECOWAS), a trading bloc with a single market which comprises
of 15 countries which include Nigeria, Benin, Togo, Ghana, Liberia, Gambia,
Niger, Burkina Faso, Cape Verde, Cote Devoir, Guinea, Guinea Bissau, Mali,
Senegal, Sierra Leone.
The ECOWAS market remains an untapped potential that could lead to
significant growth in non-oil export from Nigeria. With a population of about 350 million people and
GDP of about $1.48trillion, this market remains the low hanging fruits to be
fully explored in the quest for the growth of the non-oil export volume from
Nigeria. The data obtained from the National Bureau of Statistics showed that
the volume of export from Nigeria to West African countries has been on the
decrease. In 2013 Nigeria goods worth N756.9 billion were exported to different
countries in the region. This increased slightly to N824.7 billion in 2014 and
it has consistently being on the decline since then with an export volume of
N599.8 billion in 2015 and N576.6 billion in 2016.
The potential of export from Nigeria into the ECOWAS region can be
seen in the items of import into the region from Asia, America and Europe. The
top ten products being imported into the region from different parts of the
world include Fuels which represent
24% of total imports. They are followed by motor vehicles, tractors, cycles and
other vehicles (2nd place), machinery , mechanical appliances and boilers
(3rd), machinery and electrical appliances (4th), cereals (5th), plastics (6th), works
in iron, iron and steel (7th), iron, cast iron, steel (8th), pharmaceuticals (9th)
and fish and seafood (10th).
The ECOWAS also presents a great potential for Non-Oil Export growth
to Nigeria particularly in Agricultural products because of the similar
lifestyle and culture of the people in the region and hence, the propensity to
feed on the same types of food items. This means both raw and processed
Agricultural products from Nigeria have a great chance of success in the ECOWAS
markets. In addition to this, the doors to the other African markets will
largely remain close until Nigeria conquer the West African markets. This is
because, whatever strategy is deployed to penetrate ECOWAS market is the same
with what needs to be done in order to penetrate other African market.
Therefore, until such strategy that works in the West African markets is put in
place, we will not have a model to replicate in other African countries.
The products to be targeted in any strategic plan being developed to
grow export into the West African markets should be based on internal exports
and external exports. Internal exports are the items currently been shipped
(both formally and informally) by Nigerians into the region and these include
Detergents, Pharmaceutical, Slippers, Cosmetics, Plastic products, Biscuits.
Cigarettes, Malts, Fruits Juice, Antiseptics, Toothpaste, CO2 Gas,
Confectionery, Dairy products, Bar Soap, Paints, Corrugated Roofing Sheet,
Glass Louvres, Cements, Furniture, Noodles, Cooking Gas, Lubes products, Maggi
Seasoning, Salts, Liquid Soaps, Chin-Chin, Diapers, Shopping Bags, Insecticides
and Carpet. The External exports are the products being shipped into the region
by countries outside the ECOWAS (like the rest of Africa and other continents
of the world). Out of these products, the ones that Nigerians can easily
produce and ship into ECOWAS include: Agricultural products like Cereals,
Snacks, Plastic products, Pharmaceutical products, Fish and Sea foods.
The points highlighted above showed that the path of least
resistance (with low hanging fruits to explore) to growing our non-oil export
trade as a nation is to begin massive exportation of Nigerian products to the
ECOWAS member state. This is because the transit time is shorter and hence
shorter trade cycle. Also, the culture and types of goods are similar and so we
can export our foods to them. In addition to this, they are less developed than
us therefore, their standards are not too high for us to meet like that of the
developed world. Lastly, the ECOWAS Trade Liberalisation Scheme (ETLS) makes it
easier for them to buy products from us than from a third party because of zero
duty payment for Importers that import from member states.
In conclusion, it is very important to note that conquering West
African markets will mean conquering the other export markets in the African
continent. Therefore, any strategy that is developed and deployed now that
works and thus leading to tremendous growth in our exportation to West Africa,
is the same strategy (or probably with a slight modification) that we will need
to grow the export of Nigerian products to the rest of Africa.
Bamidele Ayemibo
bayemibo@3timpex.com
