Business
STAKEHOLDERS have called for promotion of non-oil exports to engender a favourable balance of trade and drive Nigeria’s diversification agenda.
They made the call at the Manufacturers Association of Nigeria Export Promotion Group (MANEG) Seventh Annual General Meeting, on Wednesday in Lagos.
Prof. Segun Ajibola, a past President of the Chartered Institute of Bankers of Nigeria, said that the balance of trade position of a country was a powerful instrument for measuring the state of health of its economy.
Ajibola said that about 90 per cent of Federal Government’s foreign exchange earnings and 70 per cent of the government’s total revenue were from oil proceeds and petroleum income tax/royalties.
Ajibola said that the government, in attempts to the re-configure the country’s trade balance, continued to introduce incentives into the business clime since the 1970s.
He said the incentives were to target favourable balance of trade through improved performance of the non-oil sector of the economy, with manufacturing as the cornerstone.
He, however, noted that the export segment of Nigeria’s balance of trade remained heavily reliant on oil and gas as the main source of earnings.
“The current scenario, therefore, calls for a total re-evaluation of the country’s architecture for promoting non-oil exports, if indeed, manufacturing activities are to have meaningful impact on Nigeria’s trade balance,” he said.
Ajibola also called for a new trade and industrial policy in Nigeria.
He said the trade policy should articulate new incentives and drive the implementation.
He urged Nigeria to capitalise on the African Continental Free Trade Agreement as a tool for deepening trade within the African continent.
Comptroller Ajibola Odusanya, Customs Area Controller, Lilypond Export Command, Nigeria Customs Service (NCS), noted that over the years, oil had been the mainstay of Nigeria’s export sector and the country’s major source of revenue.
He noted that due to global fall in oil prices, the Federal Government saw the need to diversify into the non-oil export sector to sustain the economy.
Odusanya said that export growth, along with other factors, led to economic growth by stimulating production, investment, consumption and job creation.
He added that the manufacturing sector played a critical role in growing the Nigerian economy, as manufactured goods held potential to improve Nigeria’s balance of trade when exported.
He said that while the NCS played a crucial role in facilitating trade, manufacturers must begin to leverage NCS reforms to expand exports.
“The service, in its effort to enhance ease of doing business for compliant stakeholders, commenced implementation of the Authorized Economic Operator programme on Sept. 2.
“Certified manufacturers that consistently complied with regulations are subjected to fewer physical inspections and simplified customs procedures, allowing for faster exports.
“Focusing on trade facilitation measures, the Nigeria Customs Service is positioned to continue to create a more enabling environment for manufacturers to export,” he said.
The President of Manufacturers Association of Nigeria, Chief Francis Meshioye, said that the government was desirous of achieving favourable balance of trade in the economy.
He said that the goal would be better accomplished with consistent and concerted efforts to incentivise the non-oil export sector.
He said that while there were several export incentives introduced by the Federal Government, only few of them were being effectively pursued.
He added that manufacturers often experienced counter-policy regulations and actions from some ministries, department and agencies that were inimical to export business growth.
“We need to take immediate actions to ameliorate the prevailing initial negative impact of government reform measures on the manufacturing sector.
“The escalating exchange rate, high cost of logistics, insecurity, high energy cost, increasing cost of borrowing, etc., have combined to further weaken the performance of the manufacturing export sector.
“We need to address these issues as signposted in the government stabilisation plan, and its speedy and diligent implementation is of essence,” he said.
Mrs Odiri Erewa-Meggison, Chairman of MANEG, lauded the Federal Government for ongoing reforms, particularly review of policies on taxes.
She also commended the Federal Government for calling for submission of Export Expansion Grant baseline data from non-oil exporters.
According to her, it is a good step in the right direction as it will go a long way to motivate manufacturers.
Erewa-Meggison, however, noted that since the removal of fuel subsidy and increment in energy tariff, exporters had been struggling. (NAN)\
A.I
Oct. 10, 2024
Tags: Ajibola Odusanya Mrs Odiri Erewa-Meggison Prof. Segun Ajibola
