Explore Nigeria’s impressive non-oil exports performance in the first half of 2023
As we enter the second half of 2023, let’s look at Nigeria’s financial performance, which has seen substantial non-oil exports.
According to the Nigerian government, the country generated an impressive $2.539 billion as non-oil exports within the first half of 2023.
Insights from the Executive Director of NEPC
In a presentation on the non-oil export performance for 2023, Dr Yakusak Ezra, the Executive Director of Nigeria’s Export Promotion Council (NEPC), disclosed these figures in the capital, Abuja.
The Front-runners in the Export Arena
Among the numerous contributors to this substantial sum, two companies stood out.
Indorama-Eleme Fertiliser and Chemical Ltd led the pack with exports valued at 282,553,286.15 million dollars, while Dangote Fertiliser Ltd followed closely, registering an impressive 199,871,962.29 dollars in exports.
The Impact of Global Economic Conditions
Interestingly, despite the impressive performance of these key players, the sector noted a drop in the value of exports during the first half of 2023.
This was largely due to the general elections held earlier this year and the changes in global economic conditions.
A Closer Look at Non-oil Exports
Diving into the numbers, Dr Ezra shed light on the non-oil export performance.
Between January and June 2023, exports of products amounting to 3,944,344.17 metric tonnes and worth 2.539 billion dollars were recorded.
When compared with the corresponding period in 2022, this figure dipped by 0.09%.
Contributing Factors to the Decrease
While a marginal decrease of 0.09% may seem insignificant, Dr. Ezra explains it could be due to several reasons.
These include the general elections of February/March 2023, the transition in government, and changes in global economic conditions such as a slowdown in global demand or a decline in commodity prices.
The Product Portfolio
The NEPC chief further revealed that a diverse range of 224 products, including manufactured goods, semi-processed items, solid minerals, and agricultural commodities, were exported.
Top exports included urea, cocoa beans, cashew nut/kernels, sesame seed, and soya beans/meal.
Exports to ECOWAS Countries
Out of the total exports, 1,058,791.27 metric tonnes of products worth 175.476 million dollars, accounting for 6.91% of the total export value, were exported to the 13 member countries of the Economic Community of West African States (ECOWAS).
Participation in non-oil exports wasn’t limited to a few entities.
A whopping 859 companies participated in non-oil export trade during the first half of 2023.
Indorama-Eleme Fertiliser and Chemical Ltd and Dangote Fertiliser Ltd were again notable leaders in terms of value.
The Role of Financial Services
Banks also played a significant role, with 30 banks participating in the issuance of Nigeria Export Proceed Forms (NXPs).
Zenith Bank PLC emerged as the bank with the highest NXPs value, accounting for 38.11% of the total.
Exports to African Countries
Despite the considerable non-oil export performance, NEPC warns that inter-African trade volume is still low.
In fact, no African country made it to the list of top 15 importers of Nigerian products.
Only 164,748.75 metric tonnes of products, valued at 55.085 million dollars (2.17% of the total export value), were exported to various African countries.
A Comparison with the Previous Year
Non-oil-based exports in Nigeria grew by 39.91% in 2022, reaching $4.820 billion.
Semi-processed/manufactured products accounted for 36.61% of these exports, surpassing Agriculture’s 30.12% share of non-oil exports.
A High Point in History
According to Dr Yakusak, Nigeria’s non-oil export record for 2022 was the highest since NEPC’s establishment 47 years ago.
This can be attributed to NEPC’s effective export intervention programs over the years.
As we wrap up, it’s worth noting that Nigeria’s non-oil export sector shows a strong performance in 2023, despite some setbacks.
The leading role of companies like Indorama-Eleme Fertiliser and Dangote Fertiliser Ltd and the diversification of exported goods highlight the dynamism and potential of this sector.
Looking forward, maintaining and boosting non-oil exports will be essential for Nigeria’s economic growth and stability.
And that’s something we all should be interested in, don’t you think?
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Frequently Asked Questions
1. What is the value of Nigeria’s non-oil exports in the first half of 2023?
The Nigerian government reported non-oil exports of $2.539 billion in the first half of 2023.
2. Which companies led the non-oil exports in Nigeria?
Indorama-Eleme Fertiliser and Chemical Ltd and Dangote Fertiliser Ltd were the leading companies in terms of export value.
3. Why was there a drop in the export value in 2023?
The drop in export value can be attributed to the general elections held in 2023 and changes in global economic conditions.
4. What were the top products exported from Nigeria?
The top exports included urea, cocoa beans, cashew nut/kernels, sesame seed, and soya beans/meal.
5. How does the non-oil export performance in 2023 compare to 2022?
The non-oil export in 2023 saw a slight decrease of 0.09% compared to the same period in 2022.