Non-oil Exports as Fulcrum of Sustainable, Diversified Economy

James Emejo writes that  federal government must sustain the current growth momentum in the non-oil sector which has contributed to stabilising the macroeconomy in recent times

Non-oil exports, comprising goods and services that sold  to other nations excluding crude oil and its derivatives, remain a key economic buffer for the country, providing for a more resilient, inclusive, and sustainable economy.
Amid current efforts to diversify the base of the Nigerian economy, investments in infrastructure, policy reforms, and market access for non-oil products have become essential.

If anything, non-oil exports are crucial for shielding the economy from global oil price shocks, and guarantee foreign exchange stability with the attendant impact on the overall economy.
No doubt, recent milestones in the non-export sector, particularly export promotion activities, have helped to provide the much-needed liquidity in the economy, thereby aiding recovery from a hitherto precarious economic situation.
The federal government has intensified efforts to diversify the economy — a strategy aimed at expanding the productive base of the economy to reduce its over-dependence on crude oil revenues – an initiative which has produced salutary results in recent times.

In the time past, the country’s non-oil exports were nothing to write home about, leading to a weaker Naira because imports continually overwhelmed exports while the country remained a mono-economy, mainly relying on oil exports, and remained exposed to volatility in the international oil market.
However, all these appeared to  be  changing for better, as evidenced in the country’s non-oil products export performance in the first half of the year (H1 2025) which rose by 19.59 per cent to $3.23 billion, compared to $2.70 billion in H1 2024.

The Nigerian Export Promotion Council (NEPC) under its current Executive Director/Chief Executive, Nonye Ayeni, has continued to spearhead remarkable initiatives to further unlock FX to the economy to strengthen the local currency among others.  
In H1, the volume of exports increased to 4.04 million metric tonnes (MMT) compared to the 3.83 MMT for the same period of 2024.
Nigeria exported product worth 662,993.00 metric tonnes to 11 ECOWAS countries amounting to $139.242 million -an increase in exported products as against the same period in 2024.
In the same vein, the country exported 488,499.44 metric tonnes of products worth $83.538 million to 21 other African countries which amounts to 2.59 per cent of the total export value as compared to 1.96 per cent for the same period of 2024.

Essentially, the half-year progress report on the non-oil export performance, further reaffirmed the commitment of the federal government through the NEPC to rescue the economy from the dangers of over reliance on oil revenues.
Ayeni, while celebrating the successes, stated that the council was conscious of ongoing challenges in the sector, and reaffirmed its commitment to navigate existing challenges to deliver value to stakeholders.
She said: “At NEPC, we remain resolute and committed to driving up the volume and value of non-oil exports for sustainable and inclusive economic growth” adding that the country was expanding access to global markets to ameliorate the possible impact of the recent hike in trade tariffs imposed on Nigeria by the United States(US).
She attributed the boost in non-oil exports to the significant increase in global demand for Nigerian products, including the African region, adding that this increased the value of key Nigerian commodities and products, such as cocoa, sesame, cashew and aluminum.

She said the AfCFTA provided wider market access and tariff relief for Nigerian exporters, adding that the council led export intervention programmes such as capacity building on quality and standards, packaging and labelling, export documentation and certifications.
The NEPC boss further pointed out that during the period under review, the council facilitated market access and market linkages progammes for exporting companies, thereby giving their products more visibility in the global market.
According to data from Pre-shipment Inspection Agents (PIAs), of the top-20 products exported in the first half of 2025, Cocoa Bean was the most exported commodity with 34.88 per cent value in terms of total export compared to 23.18 per cent for same period in 2024.

Urea/fertilizer, came second with 17.65 per cent as against 13.78 per cent for the first half of 2024 while cashew nuts, with12.35 per cent of the total exported products as against 8.62 per cent for the same period in 2024 was third on the log respectively.”
Ayeni noted that, “The growth in value-added exports improved earnings, as more exporters are now imbibing the culture of value addition to their products.
“The rising demand from emerging economies, such as India, Brazil, Vietnam and Africa increased Nigeria’s non-oil export volumes and diversity.”

Landmark initiatives
The NEPC has continued to play a crucial part in the non-oil sector through several laudable programmes.
In 2024, the council launched a transformative sensitisation programme targeting Informal Cross Border Trade (ICBT) which led to the signing  of an MoU with the National Bureau of Statistics (NBS) to facilitate data collection at Nigeria’s border communities.
Ayeni said the council is also working with players along these borders to further mainstream the activities of informal traders by providing seamless trade facilitation in terms of export documentation and procedures among others.
The council also launched the market access and market linkage programmes to create market access and linkage for export of Made-in-Nigerian products, thereby exposing exporting companies to B2B engagements while creating visibility for Nigerian products and services in the international market and across the African region.
Also, to facilitate the ease of doing business and seamless documentation processes, the council, during the first half of the year, registered a total of 2,285 new exporters, including 377 female and 1467 male exporters captured on its portal respectively.

According to Ayeni, the council trained over 100 women-led businesses on how to increase the volume and value of spice and herb exports through aggregation centers as part of concerted effort to streamline the supply chain and serve as a hub for connecting producers to local and international markets, in alignment with the Renewed Hope agenda of President Bola Tinubu, to mainstream women and youth in the export eco-system.
According to her, a total of 236 different products were exported in the period under review, representing an increase of 16.83 per cent compared to the 202 distinct products exported in the first half of 2024.
The products exported ranged from agricultural commodities, extractive industries, and manufactured and semi-processed ones.

She said: “However, it is pertinent to state here that the non-oil export of Nigerian products is gradually diversifying from traditional agriculture exports to semi-processed/manufactured products.
She said: “In the first half of 2025 as Sesame seed came fourth accounting for 4.23 per cent Cocoa and its derivatives topped Nigeria’s non-oil exports in the first half of 2025, accounting for 41.11 per cent of total export value due largely to rising global demand, higher prices, and increased local processing capacity.
“Thus, the export of value-added products such as cocoa butter, liquor, and cake reflects Nigeria’s progress in exporting value-added products.
“This growth is driven by improved product quality, investment in agro-processing, and access to premium markets like the Netherlands and Germany.
“More importantly, government-backed trade facilitation and compliance with international standards have further enhanced competitiveness and increased export earnings.”

Demand for Nigerian products
According to the NEPC non-oil performance report, non-oil receipts were largely attributed to significant increase in global demand for Nigerian products across the globe including the African region.
Ayeni said  this increased the value of key Nigerian commodities including cocoa, sesame, cashew and aluminum while AfCFTA provided wider market access and tariff relief for Nigerian exporters.
In addition, NEPC spearheaded export intervention programmes such as capacity building on quality and standards, packaging and labelling, export documentation and certifications.

She noted that market access and market linkages progammes for Nigerian exporting companies gave their products more visibility in the global market while growth in value-added exports improved earnings, as more exporters are now imbibing the culture of value addition to their products.
The rising demand from emerging economies, including India, Brazil, Vietnam and Africa also increased the country’s non-oil export volumes and diversity.
Furthermore, in its determination to enable MSME exporters comply with global market requirements for export of quality products, the council had implemented international certifications covering FDA and HACCP for 200 exporters free and fully paid for by NEPC.

The objectives are to enhance compliance with global food safety standards, improve export readiness and reduce product rejections in international markets as well as build their capacity on GMP and food safety management systems.
Ayeni said the gesture greatly impacted SME exporting companies who now export quality products to niche markets thereby increasing market access and competitiveness of Nigerian products in the global market.
 Among other things, a total of 23, 239 hybrid seedlings as well as other farm puts were distributed to 3, 047 farmers across the country as part of the NEPC Corporate Social Investment.
The intervention programme, which included cocoa, sesame seed and oil palm, significantly enhanced the quality of produce by the farmers as well as increased the production of these commodities for export in the global market.

  CHALLENGES
Despite recent milestones, the country’s non-oil export sector is constrained by infrastructure and supply chain fragility, financial limitations, regulatory hurdles, and governance inefficiencies.
The country’s export competitiveness is currently bedeviled by high logistics costs, subpar port services, congested facilities, poor roads, and unreliable power supply.
The inherent challenge where exporters often reroute goods through neighboring countries to avoid delays, adding 20–30 per cent in extra costs are major disincentives to progress.
Export costs are notably higher in Nigeria where shipping a container out could cost about $1,500, compared to about $600 in Ghana.

In addition, several businesses struggle to meet international demand due to inconsistent supply chains and variable product quality, leading to rejected exports – a key concern which is currently being addressed by NEPC in collaboration with other regulatory agencies.
In addition, the agri-value chain remains fragmented with limited processing capacity, meaning exports are often raw, reducing value addition and competitiveness among others.
Moreover, financing and FX constraints remain key limitations for non-oil exporters, particularly small businesses which face high interest rates, lack of collateral, and complex loan procedures .
Also, the current FX regime further ensured that exporters often earn less due to unfavorable official rates versus parallel market rates.

However, the relative stability in the FX market coupled with some degree of predictability engendered by the Central Bank of Nigeria (CBN) is already addressing concerns of exporters.
Moreover, complex customs procedures, export documentation requirements, and bureaucracy in policymaking create barriers for exporters.
While there are schemes like Export Expansion Grants (EEG), implementation had been poor—only a fraction of promised funds was disbursed, and the process remains slow and ineffective.
According to analysts, export incentives remain weak compared to other countries such as China which provides up to 17 per cent export rebates.
Stakeholders believed that sustaining the current increases in non-oil receipts would require that these limitations be addressed by the government to further strengthen economic resilience and job creation.

The post Non-oil Exports as Fulcrum of Sustainable, Diversified Economy appeared first on THISDAYLIVE.

  • Related Posts

    Amidst Demand, Consumer Goods Index Emerges Best Performing Indicator on NGX

    Kayode Tokede Following demand for BUA Foods Plc, among others, the Consumer Goods Index emerged as the best performing indicator on the Nigerian Exchange Limited (NGX) in the first eight months…

    Sanwo-Olu: Technology Adoption, PPP Will Enhance Govt Service Delivery

    Emma Okonji Lagos State Governor, Babajide Sanwo-Olu has said the strategic adoption of emerging technologies across Ministries, Departments and Agencies (MDAs) of government, will boost government service delivery to the…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Business & Economy

    Amidst Demand, Consumer Goods Index Emerges Best Performing Indicator on NGX

    Sanwo-Olu: Technology Adoption, PPP Will Enhance Govt Service Delivery

    Polution: NIMASA Charges Ships Operating in Nigeria on MARPOL Compliance

    Customs Commission Advanced Cargo Screening X-ray Machine at SAHCOL

    Predicting Long-term Naira Stability, CBN Reforms Offer Relief in Living Costs

    Non-oil Exports as Fulcrum of Sustainable, Diversified Economy

    Stock Market Extend Weekly Downward Momentum, Drops by N439bn

    STOAN Congratulates NPA Boss on Election as IAPH Vice-President

    Addosser Finance Celebrates Historic Opening of First Regional Branch

    Kaduna resident doctors to begin indefinite strike September 1

    NAFDAC seals illegal cosmetic factory Shine Shine Skincare in Lagos over unsafe cosmetic production 

    Nigeria’s 70% broadband goal at risk as NCC records decline again in July 

    Nigeria records 16,000 suicides annually as Senator pushes bill to decriminalize attempted suicide 

    Jigawa State Governor unveils N1.2 billion solar mini-grid across 10 distribution transformers    

    Former Inspector General of Police, Arase, dies in an Abuja hospital

    NDLEA raids 71.5-hectare cannabis farm in Taraba, destroys 178,750kg harvest 

    FG unveils new curriculum for primary, secondary, and technical schools in Nigeria 

    Speaker directs investigation into alleged unfair recruitment exercise in National Assembly 

    Nigerian box office crosses N10 billion in revenue after 8 months  

    U.S. Embassy, consulate in Nigeria to close September 1 for Labor Day 

    Nigeria’s gas production rises to 7.59 billion SCFD as flaring drops – NUPRC

    Nigeria’s gas production rises to 7.59 billion SCFD as flaring drops – NUPRC

    Weekly Market Wrap: Nigerian stock market drops 0.50%, extends third red week 

    Top Nigerian wealthy businessmen who succeeded without university degree 

    Nigeria’s healthcare industry a driver of national competitiveness

    FG credits Naira rebound to oil receipts, diaspora remittances, and FX backlog clearance

    Nigeria’s gas flaring falls by 7.16% in July 2025 as gas production hits 7.59bscfd 

    Report: Nigerian Entertainment Industry to Grow to $13.6bn by 2028, Industry a Global Model for Export

    To Decongest Lagos Ports, NPA Moves to Revive Delta Ports, Board Meets Oborevwori, Other Stakeholders

    Cutix Q1 profit slumps amid rising input costs and mounting finance costs 

    CAC shifts implementation of new service fees to October 1, 2025 

    ICRC: 13,595 families searching for 23,659 missing persons in Nigeria

    Katsina govt revokes licences of all private and community schools

    Top 10 countries to migrate to for better salaries and career growth in 2025 

    Tetracore Energy Commissions 6.2MMscfd Phase II CNG Facility in Ogun State, strengthening Nigeria’s clean energy drive 

    Top 10 remittance apps Nigerians abroad use for sending and receiving money  

    All-Share Index posts modest 0.31% August gain — how did the sectors perform?