Wednesday, March 11, 2020

Non-Oil Export Grew By Over 50% In 2019

The newly released full year report of NBS for the 2019 showed an increase of 50% in the non-oil export component of the total export from Nigeria when compared to that of the year 2018. This is due to an increase from 6.2% in 2018 to 13.1% in 2019. The report also showed about 200% increase in the non-oil export component of the total export from Nigeria from Q4 of 2018  to Q4 of 2019. This is due to an increase from 4.6% in 2018 to 12.7% in 2019.

This is happening at a point in time when Nigeria has closed her borders which has prevented goods from being imported into and exported out of the country through the land borders. The Q4 report of 2019 showed a decline of about 8% when compared to Q3 of 2019. However, both reports showed a consistency in the rise in non-oil export from Nigeria when compared to previous years and these have been largely attributed to the fact that the land border closure has forced many Nigerian non-oil exporters to begin to ship by sea and this most likely has led to them being forced to declare the item being shipped out of the country and thereby leading to an increase in the reported non-oil export from Nigeria. The fact that the manufacturing component of the Q3 and Q4 in 2019 were higher than the same period in the previous year is a confirmation to the fact that the majority of the items now being shipped by sea are manufactured goods and most of them are going to West Africa and other parts of Africa. 

The quantum of export of manufactured goods leaving Nigeria from the data available now showed that Nigeria is partially ready for the African Continental Free Trade Agreement (AfCFTA) and it is very important for the government of the day to hasten action on all that needs to be done in terms of ratification and depositing the required trade instrument of Nigeria with the AU secretariat in order for Nigeria to become a state party that can fully participate under the AfCFTA. This is to ensure that, when trading begins in July 2020, Nigeria can effectively start training with other African countries under this largest free trade area in the world.
Bamidele Ayemibo

No comments:

Post a Comment