Nigeria’s unrealised export potential now $3bn – ITC

Nigeria’s unrealised export potential is estimated at $3bn, according to data from the International Trade Centre.

The report stated, “The total unrealised export potential for Nigeria stands at $3bn.”

The data accessed by The PUNCH on Sunday highlighted key export commodities in Nigeria, including urea, with actual exports valued at $987m and an untapped potential of $520m. Cocoa recorded export volumes worth $708m, leaving $404m in unrealized potential.

ITC further revealed that cashew nuts had $220m in actual exports and $437m in untapped potential. Sesame seeds, aluminum, and tin ore recorded exports of $319m, $220m, and $138m, respectively, with untapped potential valued at $264m, $155m, and $83m.

Electric energy exports reached $112m, with an unrealized potential of $48m. Ginger, oil cakes, shrimp, and rubber exports were valued at $61m, $96m, $68m, and $61m, respectively, while their untapped potential stood at $64m, $96m, $82m, and $25m.

“The products with the greatest export potential from Nigeria to the world are urea, cocoa beans, and cashew nuts (in-shell). Urea shows the largest absolute gap between potential and actual exports, leaving room to realize an additional $520m,” the report noted.

Experts have urged the government to address structural challenges limiting Nigeria’s export potential.

An associate professor at the University of Africa, Bayelsa State, Unekwu Onuche identified production capacity, bureaucratic inefficiencies, and product quality as critical issues.

“If you have potential but don’t utilize it, especially in exports, several factors could be responsible. Do we have the capacity to produce enough to meet demand? The market exists, but production often falls short,” Onuche said.

He stressed the need for an enabling environment to boost production.

“Export procedures in Nigeria can be cumbersome. While official processes may appear straightforward on paper, the reality is different. Obtaining approvals remains a significant hurdle,” he added.

Onuche also pointed to product quality as a major concern.

“At one point, Nigerian agricultural exports struggled due to high chemical residues and quality issues. If products fail to meet international standards, market access becomes difficult,” he explained, calling for better regulation and improved agricultural practices.

An economist with Lotus Beta Analytics, Shedrach Israel echoed these sentiments, emphasising the need for targeted interventions to boost agricultural production.

“To increase exports, we must scale up production. Take rice, for instance. Initiatives like the Anchor Borrowers’ Programme significantly improved output. Similar efforts are needed for cocoa and other cash crops,” Israel said.

He pointed to favourable climates in the southwest and southeast as opportunities for expanding cocoa production.

“With more refineries coming online, urea production can also increase, optimizing exports,” he added.

Meanwhile, the Executive Director of the Nigerian Export Promotion Council, Nonye Ayeni, revealed in 2024 that “Nigeria earned $2.7bn from non-oil exports in the first half of 2024, a 6.26 per cent increase from the $2.53bn recorded in the same period in 2023.”

Ayeni attributed this growth to political stability following the 2023 general elections, rising demand for Nigerian products, and initiatives promoting export culture.

During the first half of 2024, Nigeria exported 211 different products, with cocoa beans, urea/fertilizer, and sesame seeds contributing 23.18 per cent, 13.78 per cent, and 11.04 per cent of total non-oil export revenue, respectively.

This shift from raw agricultural products to semi-processed goods highlights evolving trade dynamics, according to Ayeni.

The export volume totaled 3.83m metric tonnes, reaffirming the non-oil sector’s central role in Nigeria’s economic revitalization.

Nigeria’s exports reached 122 countries across Africa, the Americas, Asia, Europe, and Oceania. The Netherlands, Malaysia, and Brazil were the top destinations, while Ghana was the only African country among the top 15 importers.

The NEPC boss said seaports facilitated 95.08 per cent of exports, with the South-West and South-South regions dominating export activities.

Ayeni urged banks to enhance exporters’ access to finance and global markets, leveraging the African Continental Free Trade Area to unlock new opportunities.