Nigeria recorded total export revenue of $10.4 billion in 2019, the highest since 2008 which is farthest we can trace the country’s export data. According to the data from the CBN, total exports (Free on Board “FOB”) in 2019 was $64.9 billion. Thus for the first time ever, oil revenue as a percentage of total exports fell to 83.9% as against over 90% in previous years.

A big jump: Non-oil exports, which are considered a priority for the Buhari-led government, jumped over 100% from $4.6 billion to $10.4 billion. Non-oil exports typically averaged $4.7 billion in the last 11 years and hit its highest in 2013 when it stood at $7.2 billion. But as they say, you need to dig deeper to see the facts behind the figures.

A deep dive into the data revealed that a huge component of Nigeria’s non-oil export figures were “re-exports”. Note that re-exports is an economic term for items that were previously imported into a home country and then re-exported to other countries. By definition, re-exports are all imported goods (other than goods declared in transit or transshipment) which are subsequently re-exported. A good illustration is when Company A imports some products into Nigeria and then carried out further processing on them before exporting them to Ghana and other African countries. This often occurs when countries try to avoid trade barriers or duties.

(READ FURTHER: Nigeria faces breaking point as India’s global crude oil demand drops by 70%)

Re-Export data: Nigeria’s re-export data for 2019 was about $6.2 billion, contributing to about 60% of total exports. This was about 4 folds higher than the $1.5 billion reported in 2018 and $280 million reported in 2017. Data from the National Bureau of Statistics provides better insight into the makeup of Nigeria’s re-export and which countries we exported to.

Standard chartered
Examples of some of the items re-exported include vessels and floating structures to Ghana for N302 billion, floating and submarine drilling to Cameroon for N65.5 billion etc. Some exported items went to Western countries such as the US, Spain, Argentina etc. For example, Aeroplane Parts and Helicopters were re-exported to Canada and Ghana respectively.

READ MORE: AfCFTA forces FG to revamp port infrastructure to avert trade loss

Why this matters: In an era were African governments have agreed to sign the AFCFTA, imports into member countries of the African Union will need to become more scrutinized. This is important towards avoiding sharp practices. For example, goods could easily be exported into neghbouring Benin Republic from The Netherlands, and then re-exported into Nigeria at a cheaper cost, thereby diverting earnings that could have gone to the government from import duties.

https://nairametrics.com/2020/04/10/revenue-from-nigerias-non-oil-export-was-highest-in-2019/

Cc mynd44 lalasticala

The diversification of our foreign exchange is happening.

Despite these high exports, what do we benefit from the govt? We keep giving and making sacrifices for our country but get nothing in return. We provide water, electricity, health care and every other thing by ourselves, even security which is supposed to also be the duty of the govt, we also provide for ourselves. All these figures being displayed make no sense until they impact the lives of the majority of Nigerians.

Very true

oz4real83:
Despite these high exports, what do we benefit from the govt? We keep giving and making sacrifices for our country but get nothing in return. We provide water, electricity, health care and every other thing by ourselves, even security which is supposed to also be the duty of the govt, we also provide for ourselves. All these figures being displayed make no sense until they impact the lives of the majority of Nigerians.

Really? It does not make sense because all the country's problem can be solved overnight? Lets be real for once. Nigeria is on the right path of foreign exchange diversification, a journey of a thousand miles starts with a step.

Stalwert:


Really? It does not make sense because all the country's problem can be solved overnight? Lets be real for once. Nigeria is on the right path of foreign exchange diversification, a journey of a thousand miles starts with a step.

everytime is not for politics. If I am going from Benin city to Abuja, I will know I am on the right path if I have passed through Auchi, Okene, Lokoja. In a situation when I find myself in Ore, Ondo state even though I was going to Abuja, what has ore got to do with Abuja? Our problems can't be solved overnight but Nigerians want to see a clear and right path to show that we are in the right direction. Nigerians have suffered for too long, we need change. We don't want 100,000mw of power overnight. We want to grow from 3000mw to 10,000mw, from 10,000mw to 20,000mw and more. We simply want a clear, defined and right path of development.

This is the CBN's governor in 2016 commenting on non-oil export total of $10.53bn in 2014:

“The low level of export loans has no doubt contributed to a large extent to the decline in non-oil export revenue receipt from $10.53 billion in 2014 to $4.39 billion in 2015,” Emefiele said.

https://businessday.ng/business-economy/article/cbn-worries-as-non-oil-exports-income-slumps-by-over-6bn-in-one-year/

In December 2019, the CBN governor talked about doubling non-oil export in 2020 to $4bn:

(Ecofin Agency) - The Central Bank of Nigeria will intensify its policy measures to reach $4 billion in non-oil revenues next year, Governor Godwin Emefiele (pictured) announced last weekend. This is double the non-oil export revenue achieved this year ($2 billion).

https://www.ecofinagency.com/public-management/0312-40725-nigeria-targets-4bln-in-non-oil-export-revenues-next-year

[s]

oz4real83:
everytime is not for politics. If I am going from Benin city to Abuja, I will know I am on the right path if I have passed through Auchi, Okene, Lokoja. In a situation when I find myself in Ore, Ondo state even though I was going to Abuja, what has ore got to do with Abuja? Our problems can't be solved overnight but Nigerians want to see a clear and right path to show that we are in the right direction. Nigerians have suffered for too long, we need change. We don't want 100,000mw of power overnight. We want to grow from 3000mw to 10,000mw, from 10,000mw to 20,000mw and more. We simply want a clear, defined and right path if development.

[/s]

Let me pretend you really have the capacity to reason, this thread is about non oil export increasing to its highest since the return of democracy, that is an indication of progress, if you want to live in despair be my guest, this certainly is good news and sign of forward movement.

Stalwert:
[s][/s]

Let me pretend you really have the capacity to reason, this thread is about non oil export increasing to its highest since the return of democracy, that is an indication of progress, if you want to live in despair be my guest, this certainly is good news and sign of forward movement.

u are a blind and unreasonable supporter. For your information, I am not a supporter of PDP or APC, I am an advocate of good governance. I voted PMB in 2015, if PMB isn't doing what I voted him to do, I have right to criticise him, I also praise him whenever ho does the right thing. GEJ's govt brandished figures that were not having positive impacts in lives of Nigerians, PMB's govt is also brandishing figures not also having positive impacts in the lives of Nigerians. Stop sounding unsensible, I will not reply you anymore.

[s]

oz4real83:
u are a blind and unreasonable supporter. For your information, I am not a supporter of PDP or APC, I am an advocate of good governance. I voted PMB in 2015, if PMB isn't doing what I voted him to do, I have right to criticise him, I also praise him whenever ho does the right thing. GEJ's govt brandished figures that were not having positive impacts in lives of Nigerians, PMB's govt is also brandishing figures not also having positive impacts in the lives of Nigerians. Stop sounding unsensible, I will not reply you anymore.

[/s]

I will still pretend you have modicum of common sense that is sufficient to reason, this thread is about non oil export if you want to discuss power why don't you open your thread and complain instead of derailing this thread? Do you get it or you are hell bent on embarrassing yourself more?

Stalwert:
Nigeria recorded total export revenue of $10.4 billion in 2019, the highest since 2008 which is farthest we can trace the country’s export data. According to the data from the CBN, total exports (Free on Board “FOB”) in 2019 was $64.9 billion. Thus for the first time ever, oil revenue as a percentage of total exports fell to 83.9% as against over 90% in previous years.

A big jump: Non-oil exports, which are considered a priority for the Buhari-led government, jumped over 100% from $4.6 billion to $10.4 billion. Non-oil exports typically averaged $4.7 billion in the last 11 years and hit its highest in 2013 when it stood at $7.2 billion. But as they say, you need to dig deeper to see the facts behind the figures.

A deep dive into the data revealed that a huge component of Nigeria’s non-oil export figures were “re-exports”. Note that re-exports is an economic term for items that were previously imported into a home country and then re-exported to other countries. By definition, re-exports are all imported goods (other than goods declared in transit or transshipment) which are subsequently re-exported. A good illustration is when Company A imports some products into Nigeria and then carried out further processing on them before exporting them to Ghana and other African countries. This often occurs when countries try to avoid trade barriers or duties.

(READ FURTHER: Nigeria faces breaking point as India’s global crude oil demand drops by 70%)

Re-Export data: Nigeria’s re-export data for 2019 was about $6.2 billion, contributing to about 60% of total exports. This was about 4 folds higher than the $1.5 billion reported in 2018 and $280 million reported in 2017. Data from the National Bureau of Statistics provides better insight into the makeup of Nigeria’s re-export and which countries we exported to.

Standard chartered
Examples of some of the items re-exported include vessels and floating structures to Ghana for N302 billion, floating and submarine drilling to Cameroon for N65.5 billion etc. Some exported items went to Western countries such as the US, Spain, Argentina etc. For example, Aeroplane Parts and Helicopters were re-exported to Canada and Ghana respectively.

READ MORE: AfCFTA forces FG to revamp port infrastructure to avert trade loss

Why this matters: In an era were African governments have agreed to sign the AFCFTA, imports into member countries of the African Union will need to become more scrutinized. This is important towards avoiding sharp practices. For example, goods could easily be exported into neghbouring Benin Republic from The Netherlands, and then re-exported into Nigeria at a cheaper cost, thereby diverting earnings that could have gone to the government from import duties.

https://nairametrics.com/2020/04/10/revenue-from-nigerias-non-oil-export-was-highest-in-2019/

Cc mynd44 lalasticala

The diversification of our foreign exchange is happening.

Good development.. Indeed diversification is key!

Stalwert:
[s][/s]

I will still pretend you have modicum of common sense that is sufficient to reason, this thread is about non oil export if you want to discuss power why don't you open your thread and complain instead of derailing this thread? Do you get it or you are hell bent on embarrassing yourself more?

just here what you are saying yourself, even though the thread is about export..the question is how does it affect Nigerians positively or are not taking about Nigeria?

now that our non export grew by 100%...how many job has been created through that?

how has that affect the exchange rate and foreign reserve?

these are the questions you should ask yourself not just abusing someone of having medium common sense

just ask yourself these questions too

Let men have fewer children, they will see that life is not as hard as it seems in Nigeria.
Situation where people look up to the government to fix every error in their lives, will not work.
If it didn't work for African Americans in the US, it will NEVER work for anyone in Africa.
Your life is what you make it, your life your choice.