‘Improved export business holds the ace for sustainable growth’
NEPC targets $100b from non-oil commodity trading
For the umpteenth time, stakeholders in the export business circle have reiterated the need to rave up the country’s export profile, particularly the non-oil products, which potential has been described as huge in Nigeria.
Meanwhile, Nigeria’s non -oil sector is expected to generate about $100 billion revenue in the next 12years, going by the indications from the Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), Olusegun Awolowo.
He disclosed that NEPC, has already mapped out “the zero oil plan” to upstage oil as the major national foreign exchange earner, by growing non-oil export segment of the economy from $8billion (2019), $25 billion (2025), and eventually between $70-100 billion in the next 12 to 15 years.
The Central Bank Governor, Godwin Emefiele, while speaking at the International Trade Seminar titled “Exporting for Growth: Opportunities in Non-Oil Export,” organized by Zenith Bank Plc yesterday in Lagos, said that while credit for non-oil export has been on the decline, total credit to the local economy has been rising.
Emefiele, who was represented by the Deputy Director, Trade and Exchange Department, W.D. Gotring, lamented that the credit for non-oil export has been declining at an average of 0.6 per cent of the total domestic loans to the private sector in the last five years.
“The low level of export loans no doubt have contributed to a large extent in the decline of non-oil export revenue, with $10.5 billion in 2014 against $4.39 billion in 2015. The impact of this development compared to the country’s potentials is significant, therefore require stakeholders to dialogue on responsive strategies that will expand the sector’s fortunes on a complimentary basis,” he said.
While the outcome of the seminar is expected to contribute to policy choices, he said that already, CBN is partnering with the Nigeria Export-Import Bank on two new export financing initiatives aimed at discounting and refinancing facilities and non-oil export stimulation facility to boost investments in the sector.
The Group Managing Director and Chief Executive Officer of Zenith Bank, Peter Amangbo, said the declining oil prices has forced our attention to several realities and the vulnerable state of the economy due to over-dependence.
Consequently, the country is faced with urgent task of improving its Balance of Trade and stabilizing the economy by focusing on the alternative- non-oil exports potentials.
“The fundamentals show that increasing non-oil exports will serve to pull the economy into recovery, create millions of jobs, engender long-term prosperity, support sustainable economical, social and environmental growth, as well as contributing to the development of the states.
“With an intent to join in the task on hand, the goal of this year’s Zenith Bank International Trade seminar is to escalate the tone of the conversation around the non-oil exports.
“Apart from the seminar series, we have decided to make it a top priority to improve the conditions that directly affect the ability of our clients to export, assisting with financing that is needed for exports, trade advocacy and promotion,” he said.
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