Business

Non-Oil Export Falls By 24% To $4.46bn

Published

2 years ago

January 24, 2024

Nigeria’s Non-Oil exports earnings fell by 24 per cent, year-on-year (YoY) to $4.46 billion in nine months to September 30, 2023, defying various efforts of the government to enhance this critical source of foreign exchange.
The figure was $5.88 billion in the corresponding period of 2022.
While the Central Bank of Nigeria (CBN) blamed the decline on lower commodity prices in the global market, experts attributed the decline to cancellation of non-oil export focused policies by the new government.
The Tide’s source’s findings from the quarterly economic reports of the apex bank also showed a steady decline in Non-Oil exports on a quarterly basis.
In the first quarter, Q1’23, Non Oil exports fell by 11.8 per cent, quarter-on-quarter, QoQ, to $1.72 billion from $1.95 billion in Q4’22. The decline continued in the second quarter, Q2’23 by another 2.3 per cent, QoQ to $1.68 billion. Non Oil exports further declined by 3.5 per cent, QoQ to $1.06 billion in Q3’23.
Consequently, quarterly earnings from Non Oil exports fell by $890 million in nine months to $1.06 billion in Q3’23 from $1.95 billion in Q4’22.
As a result, the share of Non-Oil exports in the nation’s total export fell to 7.7 per cent in Q3’23, representing a 5.7 percentage points decline from 13.4 per cent in Q4’23.
Commenting, a renowned economist, Marcel Okeke, said the decline in non-oil export earnings should be expected given the cancellation of policies to encourage repatriation of non-oil exports as well as recent forex reforms of the CBN.
Okeke, who is also former Chief Economist of Zenith International Bank, Plc, said: “The change in government led to so many changes in policies that drive all business activities, including non-oil export.
“For instance, the new President Tinubu administration practically threw away the baby with the bath water, when it stopped the CBN’s Race to $200 billion, RT200, under which the apex bank set a target of having about $200 billion repatriated from non-oil export within a time frame of two to three years.
“The new leadership at the CBN cancelled this initiative without any replacement. So, for upwards of six months now, there’s hardly any industry initiative to encourage non-oil export. It’s individual banks that are doing their thing in their silos.
On his part, Nnamdi Nwizu, Co-Founder, Comercio Partners Limited, an investment banking firm, said that the decline in Non Oil exports reflects a confluence of challenges that have persisted despite concerted efforts to stimulate growth.

Highlighting the challenges, Nwizu said: “One significant factor contributing to this decline is the presence of structural impediments within the Nigerian economy. Insufficient infrastructure, including transportation and logistics networks, hinders the efficient movement of goods and increases transaction costs for exporters.

“Moreover, regulatory bottlenecks and bureaucratic complexities persist, creating obstacles for businesses seeking to navigate the export process.

“In some cases, these challenges may discourage potential exporters or slow down the exportation process, affecting the overall performance of the non-oil sectors”.

“Simultaneously, there should be a focused effort to streamline and simplify export-related regulations and bureaucratic processes to make them more business-friendly.

On the international front, fostering diplomatic relationships and engaging in trade negotiations can open new markets and increase demand for Nigerian exports”.

Business

Customs Seek Support To Curb Smuggling In Ogun

Published

2 days ago

February 13, 2026

The Tide

The Nigeria Customs Service(NCS), Ogun 1 Area Command, has solicited support in fighting smuggling and other economic crimes at the Nations border.

The Area Comptroller, Olukayode Afeni made the appeal in an interview with Newsmen in Idiroko, Ogun.

The comptroller stressed the need for the public to provide timely and reliable information to the Service, saying noting that fighting smuggling is a collective effort

“I urge the general public to join hands with NCS by providing timely and credible information that would help toward suppressing smuggling and other economic crimes.”

“Together, we can build a prosperous nation where compliance is the norm, and criminality has no place,” he said.

Afeni reiterated the command’s commitment to combat smuggling, and facilitating legitimate trade, as well as generate revenue for national development.

Chinedu Wosu

Business

IFAD: Nigeria Leads Global Push For Youth, Women Investment In Agriculture

Published

2 days ago

February 13, 2026

The Tide

The 49th Session of the International Fund for Agricultural Development (IFAD) Governing Council has concluded in Rome, with Nigeria taking a prominent leadership role in advancing global agricultural development priorities, particularly strategic investment in youth and women.

The biennial meeting, themed “From Farm to Market: Investing in Young Entrepreneurs,” underscored the growing recognition of young people as critical drivers of job creation, innovation, and inclusive economic growth across global food systems.

The session opened with the election of Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, as Chairperson of the IFAD Governing Council.

Having previously served as Vice Chair, his emergence as Chairperson reflects the strong confidence reposed in Nigeria by Member States, recognising the country’s constructive engagement and leadership in promoting global food security.

In his acceptance remarks, Senator Kyari expressed deep appreciation to Member States for the trust placed in him, pledging to serve with humility, diligence, and a strong commitment to improving the livelihoods of rural women and men across the world.

Addressing delegates during the session, the Chairperson emphasised that prioritising youth and women in agriculture is key to unlocking economic opportunities, accelerating innovation, and driving inclusive growth.

He noted that such investments would ultimately strengthen global food systems while helping to reduce hunger and poverty.

Senator Kyari also commended President Bola Ahmed Tinubu for placing food security at the centre of Nigeria’s national priorities.

He noted that Nigeria’s leadership role at IFAD aligns with the President’s directive to boost agricultural productivity, expand economic opportunities for youth and women, and build resilient food systems capable of withstanding climate and market shocks.

The Minister further praised the IFAD Nigeria Country Office, led by Country Director Ms Dede Ekoue, for translating global development commitments into measurable outcomes for rural communities.

He highlighted the office’s role in strengthening agricultural value chains, empowering youth and women, and improving resilience among smallholder farmers nationwide.

Business

Expert Tasks FG On Food Imports To Protect Farmers

Published

2 days ago

February 13, 2026

The Tide

The Federal Government has been urged to balance consumer protection with farmers’ sustainability by ensuring timely food imports, input subsidies expansion and price stabilisation mechanisms to secure investments across the agricultural value chain.

An agriculture expert, Dr Fatai Afolabi, gave the advice at a forum organised by the Plantation Owners’ Forum of Nigeria (POFON), in collaboration with the Oil Palm and Other Oil Seeds Value Chain, themed ‘Current Government Food Strategy, the Concomitant Effects and Implications for Food Security in Nigeria’, and held in Lagos, Wednesday.

Afolabi cautioned that the recent food import policies, while easing consumer prices, could undermine local farmers and long-term food security if not carefully managed.

He noted that Nigeria’s food system was navigating an exceptionally difficult period, marked by inflationary pressures, climate variability, insecurity in major food-producing regions, and rising energy and logistics costs.

He said the Federal Government’s decision to temporarily relax restrictions on selected food imports was understandable, noting that the market had responded swiftly with a reduction in prices of major staples.

However, the convener observed that while the policy had brought much-needed relief to consumers, it posed significant challenges for local farmers and agriculture value chain investors.

“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high.

“Farmers continue to contend with expensive fertilisers, rising transport costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure, and inadequate storage and processing facilities, which result in significant post-harvest losses.

“This situation, where farmers sell produce at declining prices while production costs remain elevated, has created widespread distress across agricultural ecosystems,” he said.

Afolabi said the effects were being felt across all segments of agriculture, with rice farmers among the hardest hit.

He said reports from producing states indicated that about 3,500 rice farmers were considering exiting rice cultivation after incurring estimated losses of over N93 billion.

He added that cassava farmers were selling produce at prices that barely covered harvesting costs, leaving them unable to recover their investments.

According to him, vegetable and edible oil producers are also under pressure as imported vegetable oil brands reduce demand for locally processed alternatives.

He added that cocoa farmers continue to battle price volatility in international markets amid rising domestic labour and maintenance costs.

Afolabi noted that tree crops such as oil palm and cocoa, which require long gestation periods, were particularly vulnerable to sudden market disruptions that undermine investor confidence and discourage new investment.

He said the effects extended downstream to agro-processing and value addition, with soybean farmers supplying vegetable oil processors experiencing reduced demand and lower prices.

He said the development threatened not only farm incomes but also rural employment and agro-industrial growth, raising concerns about national food security.

According to him, sustained losses could force farmers out of production, increasing Nigeria’s dependence on food imports and exposing the country to global supply shocks, foreign exchange pressures and long-term vulnerabilities.

Afolabi cited India and the Netherlands as countries offering useful lessons in balancing consumer protection with farmer sustainability.

He said India deploys food imports strategically during shortages, while complementing them with strong domestic support systems.

He added that the Netherlands, despite being one of the world’s leading agricultural exporters, supports farmers through input subsidies, tax incentives, affordable energy, strong cooperatives, and close integration with research and extension services.

He said agricultural students in both countries also benefit from subsidised tuition, transportation and meals, as well as grants and start-up support for farm enterprises.

“This approach ensures generational continuity and innovation in the agricultural sector,” he said.

Afolabi said Nigeria’s current food import policy could play a stabilising role if complemented by deliberate measures to protect local producers.

He recommended carefully timed imports to avoid peak harvest periods, strengthened price stabilisation mechanisms, aggressive subsidies for critical farm inputs, and support for agro-processors to remain competitive.

He also called for clear communication of policy intentions to reassure farmers that import measures were strategic and temporary.

“Food imports should function as a strategic shock absorber rather than a permanent market feature.

“Government should develop and publish a national crop production and harvest calendar for major staples and align import decisions with documented supply gaps.

“Affordable food and profitable farming are not mutually exclusive goals. With thoughtful coordination and sustained support for farmers, Nigeria can achieve both,” he said.