FG: Value Addition in Non-oil Exports Key to Nigeria’s Competitiveness in Global Trade
Dike Onwuamaeze
The federal government has emphasised the urgent need for value addition on Nigeria’s non-oil exports to enhance the country’s competitiveness in international trade.
The Minister of Industry, Trade and Investment, Mrs. Doris Uzoka-Anite, stated this during a Trade Dialogue with the theme, “Trade as a Catalyst for Economic Diversification,” held in Abuja to identify common objectives, explore avenue for collaboration and collectively address the barriers that hinder prosperity in the country’s trading environment.
This urgency for enhanced value addition was amplified by the National Bureau of Statistics (NBS) report on the second quarter of 2023, which showed that non-oil products contributed only 9.82 per cent of Nigeria’s total exports during the period under review.
Meanwhile, the President of Manufacturers Association of Nigeria (MAN), Mr. Francis Meshioye, has warned that much emphasis on trade without corresponding attention to manufacturing would be counter-productive.
Uzoka-Anite said: “There is an urgent need for value-addition on our non-oil exports to enhance Nigeria’s competitiveness in global trade, as well as, increase foreign exchange earnings for the benefit of our economy. Nigeria’s favourable demographics with energetic and tech-savvy young population of 25 years of age and below, representing over 60 per cent of the population, is of great advantage.”
The Trade Minister also pointed out some of the key regulatory advancements the federal government has achieved within the trade sector, which included the reviewed and approval of Nigeria Trade Policy document for 2023-2027 and Nigeria’s updated model for bilateral investment agreements that balanced investors’ rights and obligations while providing investment facilitation.
The minister noted that the establishment of the National Quality Council (NQC) for effective implementation of the Nigeria National Quality Policy is aimed at ensuring that Nigeria’s products meet international standards.
Other achievements, according to her, included, “substantial investments in infrastructure, including rail, road, and aviation sectors. Nigeria’s recognition by the IMF in 2021 as one of the most improved countries in the ease of doing business in Sub-Saharan Africa.
“Introduction and approval by Federal Executive Council (FEC) of the Nigeria’s first investment policy document for 2023 – 2027), promoting responsible, inclusive, balanced, and sustainable investment in targeted sectors. In the light of the foregoing, the significance of these measures and policies is to assure investors’ confidence and government’s commitment toward addressing challenges facing our businesses.”
Uzoka-Anite, therefore, encouraged participants to look beyond the challenges, and focus on the opportunities which Nigeria presents, and leverage on the trade sector to strengthen the ongoing collaboration amongst the critical stakeholders.
The president of MAN, in his goodwill message, commended the minister for organizing the trade dialogue because there is no better time to discuss the effective use of trade as a vehicle for driving economic development than now.
Meshioye said that the dialogue is particularly important for members of MAN because the whole essence of manufacturing is to sell their finished products to the final consumer and this process is central to trade.
He, however, noted, “these are indeed critical moments for industries in Nigeria as our operations are buffeted by many challenges and we shall be looking forward to working with you (honourable minister) to overcome the binding constraints.
“Therefore, our discussions at this Trade Dialogue, should, amongst others, look into how Nigeria will be able to use this Guided Trade Initiative (GTI) in particular and the AfCFTA as a whole, to launch Nigerian made products into the continental trade area.
“This would require that we earnestly work on creating a conducive environment for competitive manufacturing. Our economic diversification ambitions would be better served if we leverage on our comparative strengths and implement supportive economic measures that will create new opportunities for exports and upscale our current levels.
“For us in the manufacturing sector, we have always believed and strongly too, that once the right and conducive environment is created, we shall deploy more resources to growing and expanding our businesses.
“Let me also emphasise that trade is important and is complimentary to manufacturing. But much emphasis on trade without corresponding attention to manufacturing will be counter-productive. No nation can prosper with trading alone. It should be built on a strong productive/manufacturing sector.”
