Nigeria's revenue from non-oil exports hits $2.6bn in H1'22

Nigeria has generated about $2.6 billion in revenue from non-oil exports in the first half of 2022, marking the highest half-year record since 2018. This news comes as a positive development for the country's economy, especially in the wake of the Central Bank's $200 billion program aimed at boosting export revenue over the next three years. Professor Ken Ife, the Lead Consultant for Industry and Private Sector Development at the ECOWAS Commission, shared his insights on this achievement in a recent interview on CNBC Africa. The significant increase in non-oil export revenue is a clear indication of Nigeria's potential to diversify its economy and reduce its dependence on oil. Professor Ife described this milestone as 'great news' and highlighted the government's efforts to promote and support export activities. He emphasized the importance of expanding these efforts to further enhance the country's export capabilities. One of the key components driving the export revenue growth is the export of Urea and Fertilizer, which accounted for 32.5% of the total exports. Professor Ife mentioned the ongoing efforts to increase the export volume of Urea, given Nigeria's capacity in this area. He also pointed out the potential for significant growth in exports once the new refinery begins operations, projecting a doubling of export appraisals. In addition to Urea and Fertilizer, other products such as Cocoa and Sesame Seed have shown promising performance in the export market. These products are among the targets of the Central Bank's $200 billion program, which aims to add value to key agricultural products and boost export earnings. Professor Ife noted the importance of value addition in these exports to maximize revenue potential. Despite the positive trends in non-oil exports, there is a need for more investment in value-added products to further diversify the export base. Professor Ife highlighted the government's interventions, including funding support and incentives, to encourage companies to refine and add value to raw materials before export. When discussing the top export destinations, Professor Ife acknowledged the dominance of countries like Brazil, the US, and India, while also highlighting the potential for increased intra-African trade. He pointed out that the African Continental Free Trade Area (AfCFTA) has the potential to boost trade among African countries, but noted that informal trade practices often go unrecorded in official statistics. Informal trade accounts for a significant portion of intra-regional trade in West Africa, with an estimated 60% of trade occurring outside of formal channels. Professor Ife emphasized the need to address this issue and ensure that all trade activities are properly captured to provide a more accurate picture of the region's trade dynamics. In conclusion, Nigeria's success in generating $2.6 billion from non-oil exports in the first half of 2022 demonstrates the country's potential for economic diversification and growth. With continued government support and strategic investments, Nigeria can further strengthen its position in the global export market and reduce its reliance on oil revenue.