FG promises to streamline regulations for exporters
The Federal Government, through the Ministry of Industry, Trade, and Investment, has pledged to address the issue of overlapping duties among government agencies, which has been increasing costs for Nigerian exporters.
Dr. Jumoke Oduwole, the Minister for Industry, Trade, and Investment, made this promise during a ministerial consultation in Lagos on Tuesday with the top 100 exporters in the country. The event gathered stakeholders from various sectors to discuss and find solutions to the challenges facing Nigeria’s export industry.
Oduwole acknowledged the long-standing bureaucratic inefficiencies, including conflicts among key regulatory agencies like the Standards Organisation of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC). She stated that these issues, which cause additional financial burdens for manufacturers and exporters, are not new. “The challenges, the silos, the miscommunication, and overlapping duties that make things costlier for the private sector are nothing new to me,” she said.
The minister further stressed that failing to address these inefficiencies would harm Nigeria’s economy, saying, “To not address these issues is to shoot ourselves in the foot and leave value on the table. Mr. President (Bola Tinubu) has given me marching orders, and together with my colleagues, we will deliver this for the Nigerian economy.”
Oduwole also highlighted the government’s commitment to supporting both goods and services exports. She singled out digital trade as an area with vast potential for Nigeria, particularly for the country’s youth. “We’re also supporting Nigerian exporters of services, which is one of the lowest hanging fruits for allowing Nigerian youth to earn foreign exchange while living in Nigeria by exporting their services. They’re talented in areas of digital trade. Nigeria is going to be a leading, dominating force in that regard,” she said.
The minister urged stakeholders to remain committed despite the challenges, stating, “The reforms may be tough, but we’re already turning the corner. Let’s all continue to work together to make this economy thrive.”
Meanwhile, Nonye Ayeni, the Director-General of the Nigerian Export Promotion Council (NEPC), addressed exporters’ concerns, particularly about the complexities involved in export procedures. She revealed that the NEPC had successfully secured approval from the Central Bank of Nigeria (CBN) to accept the CFA Franc for export proceeds, which is expected to ease transactions for exporters.
Ayeni also highlighted a significant challenge: exporters currently need to fill out up to 23 different documents to open a Non-Oil Export Support Programme account. However, she assured the stakeholders that this number would soon be reduced with the support of the Minister of Industry. “We’re working with stakeholders, and with the Honourable Minister’s support, we’ll see significant changes soon,” Ayeni assured.
Abba Bello, the Managing Director of the Nigerian Export-Import Bank (NEXIM), identified financing as one of the critical barriers to export growth. He called on commercial banks to take a more active role in funding non-oil exports, explaining that many of the challenges exporters face, from infrastructure to logistics, are rooted in a lack of adequate financing.
Bello also emphasized the need for Nigeria to shift its focus from exporting raw materials to exporting processed goods, which would significantly increase the country’s export earnings. “In a $200 billion global market, Nigeria earns less than $2 billion. We must expand our value chain and integrate forward to add value to our exports,” he urged.
During a workshop session, moderated by Eyitope Oyeneyin of Augmentum Advisory, exporters proposed several immediate actions to increase non-oil export revenues. Oyeneyin shared that exporters identified the Export Expansion Grant, tax exemptions, and NEPC interventions as the most effective government initiatives. He stated, “The top three government interventions that have been most helpful to exporters include the Export Expansion Grant (44%), Tax Exemption for Importers (22%), and NEPC (17%), followed by the RT200 (Race to $200bn in FX Repatriation) initiative (8%) and dedicated port terminals for exporters (4%).”
Odiri Erewa-Meggison, Chairman of the Manufacturers Association of Nigeria Export Promotion Group, also spoke on the challenges facing the manufacturing sector, calling for an improved energy supply for manufacturers. He further stressed the need for a streamlined process for the repatriation of export proceeds. “We also need foreign missions to be part of the export value chain for better information dissemination,” Erewa-Meggison said.
Lastly, Dele Oye, a representative of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), called for policies that would incentivize farmers to increase production. This, he said, would ensure that exporters have adequate supplies to meet growing demand in international markets.
