Nigeria’s Non-Oil Exports Earn $2.7 Billion in Q1 2024
By Patience Ikpeme
The Federal Government’s diversification policy is yielding significant results, with Nigeria earning $2.7 billion from the export of 211 non-oil commodities, totaling 3.834 million metric tonnes, in the first quarter of 2024.
This figure represents a 6.26% increase compared to the $2.539 billion realized in the first half of 2023, according to data released by the Nigeria Export Promotion Council (NEPC) on Wednesday.
Speaking at a media briefing in Abuja, Mrs. Nonye Ayeni, Executive Secretary and Chief Executive Officer of NEPC, highlighted the remarkable progress in Nigeria’s non-oil export sector. She noted that the country’s non-oil exports have evolved from traditional raw agricultural products to more semi-processed and manufactured goods, underscoring the success of the government’s ongoing efforts to diversify the economy.
Mrs. Ayeni provided a breakdown of the top 15 non-oil products exported during the period. Cocoa beans emerged as the most exported commodity, accounting for 23.18% of the total export value. This was followed by urea/fertilizer at 13.78% and sesame seeds at 11.04%. She emphasized that Nigeria’s non-oil export portfolio is expanding, with new products such as fresh vegetables, citrus peel, and sorghum increasingly finding their way into global markets.
“The inclusion of these emerging products on the export table, though still gaining prominence, signals a growing diversification in our export landscape,” Mrs. Ayeni said. “Moreover, there is immense potential in services, particularly in logistics and ICT, which we must explore and harness to further boost our non-oil export earnings.”
The NEPC report also highlighted the leading companies in Nigeria’s non-oil export sector. Indorama-Eleme Fertilizer and Chemical Limited topped the list with exports worth $198.8 million. Starlink Global and Ideal Limited followed with $184.7 million, primarily from agricultural products, while Outspan Nigeria Limited recorded $177.75 million from cocoa exports. Dangote Fertilizer Limited and Metal Recycling Industries Limited also made significant contributions with export values of $172.76 million and $106.53 million, respectively.
In total, 873 companies participated in Nigeria’s non-oil export activities in the first quarter of 2024, indicating a growing embrace of the NEPC’s diversification drive among Nigerian businesses.
Mrs. Ayeni also underscored the vital role of financial institutions in supporting the non-oil export sector. She reported that 32 banks were involved in non-oil export transactions during the first half of 2024, with Zenith Bank Plc leading with 43.09% of the total Non-Oil Export Proceeds (NXPs). First Bank Nigeria Plc and Fidelity Bank followed with 6.56% and 6.38%, respectively.
She urged financial institutions to take full advantage of the opportunities in the non-oil export sector by providing affordable financing to exporters, especially in light of the African Continental Free Trade Area (AfCFTA). “With the right financial support, exporting companies can scale up production and tap into global market opportunities, thereby increasing the volume of exports and Nigeria’s foreign exchange earnings,” she said.
Nigeria’s non-oil exports in the first quarter of 2024 were distributed across various regions, including Africa, the Americas, Asia, Europe, and Oceania. The top three importing countries were the Netherlands, Malaysia, and Brazil. Ghana was the only African country to feature among the top 15 global importers, ranking 14th on the export log.
Mrs. Ayeni noted that 19 exit points, including seaports, international airports, and land borders, were used for exporting non-oil products. An overwhelming 95.08% of these exports were routed through seaports, highlighting their importance in the country’s export infrastructure.
The report also revealed that 14 ECOWAS member countries imported Nigerian products, with a combined total of 530,000 metric tonnes valued at $156.12 million, accounting for 5.79% of the total export value for the period.
The NEPC’s report on non-oil export performance for the first quarter of 2024 reflects the growing success of Nigeria’s diversification efforts. As the country continues to reduce its reliance on oil, the expanding portfolio of non-oil exports is a positive indicator of sustainable economic growth. The ongoing support from financial institutions and the full utilization of trade agreements like AfCFTA are expected to further enhance Nigeria’s position in the global market.
