[size=17]Experts Hail Nigeria's Soaring NonOil Exports, as Nigeria's Economy Finally Begins to Diversify[/size]

[b]Experts in the financial sector have applauded the nation's soaring non-oil exports growth stressing that if sustained, it would mark a watershed for Nigeria on the road to diversification of the economy.
The Central Bank of Nigeria (CBN) had revealed in its third quarter (Q3) 2013 economic report that non-oil exports soared to $2.64 billion in the review period.

In a report made available to THISDAY, analysts at FBN Capital Limited stated the federal government's decision to invest in sectors that create jobs the most in the economy would further enhance the country's economic growth.
According to the experts, "We hesitate to welcome a sea-change since the figure cited for the quarter is not far short of the 12-month totals for 2011 ($3.21 billion) and 2012 ($3.00 billion). Seasonal factors may be the answer although the CBN’s separate External Sector Development Report for second quarter (Q2) 2013 indicates that non-oil exports are more likely to peak in the first half of the year than the second.

"The breakdown of non-oil exports by sector is consistent with recent years. Agriculture’s share of the total amounted to 52.5 per cent in 2011 and 47.1 per cent in 2012. The predominance of agriculture also emerges from the CBN’s list of leading exporting companies in its annual report. The five largest in 2012 in descending order were exporters of: sesame seeds and cocoa beans; finished leather; cotton and cocoa beans; leather; and cigarettes."
They added : "Beyond agriculture and agro-processing, we are not aware of the emergence of any sizeable non-oil exporters. Steel exports were due to start this year, and the Dangote Group’s proposed $9 billion petrochemicals city could make Nigeria a net exporter of fertiliser and petroleum products by 2016. For now, we await the Q4 2013 data and longer commentary in search of a trend."[/b]

While hailing the federal government's strict fiscal stance, they pointed out that the National Assembly would likely challenge FG's fiscal stance when the presidency finally submits its 2014 budget.
“A reduction in projected fiscal revenue in 2014 in the budget office's latest Medium Term Expenditure Framework has reduced FGN retained earnings to N3.58 trillion from N4.10 trillion in the current year’s budget (and N1.85 trillion actual in H1 2013). In order to contain the deficit, the authorities have pruned expenditure. They have targeted capital items in a bid to limit opposition in the assembly. The largest recurrent item is personnel costs.

http://www.thisdaylive.com/articles/experts-hail-nigerias-soaring-non-oil-export-growth/165465/

In very Simple terms:

Nigeria's Non-Oil Exports for a Whole Year in 2011 and 2012 was on average about $3billion Each and these figures are some of the HIGHEST since the 1970s when Nigeria Started to evolve an Oil-based Monocultural Economy- infact, just about 7 years or so ago, the fact that Nigeria exported over a mere $1billion NonOil Products, made a lot of headlines; WHILST today, Nigeria's NonOil Exports for 3rd Quarter alone (ie 3 months) is $2.64billion (nearly the figure for the Whole of last year!!!).
Slightly lower but similar figures were also obtained in the 1st and 2nd Quarters respectively. [size=14]Meaning that if the trend continue into the last and 4th Quarter of the year, Nigeria would have Exported between $8-$10billion NonOil Export Products IN A SINGLE YEAR Compared to about $1billion only a few years ago and $3billion in the last 2 years!![/size]. And according to most Experts, this is expected to continue next year and hopefully continuously. Similarly, there have been a corresponding and very significant Decrease in Imports in Nigeria- over #800billion decrease in Agric-based products for instance last year alone.

Before our very eyes Ladies and Gentlemen, THE NIGERIA'S ECONOMY HAS FINALLY STARTED TO DIVERSIFY (a point also argued by a Financial Times article I read over a week ago). Clearly, the FG's (and some State Govt's) Industry-targeted Tariffs/Incentives, Financial Interventions, as well as some Ongoing Infrastructural improvements, are yielding very positive Results. Nigeria NonOil Sector is certainly on the Right Path, and gathering Pace as well.

And the Great thing is that these SIGNS of Growth (both Increase in NonOil Exports and Decrease in Imports) can be seen in virtually Every Sectors/Subsector of the Nigerian Economy (except for a few like the Oil Sector): Cement, Cocoa, Hides and Skin, Rubber, Rice, Sugar, Textiles, Cashew, Wheat, Cassava, Vegetable Oil/Oil palm, Fertilizer, Plastics (very important), Steel/Fabrication, Telecommunications, Services, and even to some extent Solid Minerals, etc etc etc. All these sectors are expected to continue to improve over time, esp as the Sector-specific policies deepens and as Investments/Reforms ongoing in such critical Infrastructure as Power, Rails, Roads, River ports, Seaports, Airports, Broadband, Finance, etc also deepens.

Plz, read these Links below for further Exposition on this very important issue:

http://businessdayonline.com/2013/07/nigeria-earns-n305bn-from-non-oil-export-nbs-2/ (Nigeria NonOil Exports for Q1 2013).

http://www.vanguardngr.com/2012/09/nigeria-exports-1-35bn-worth-of-non-oil-products-in-6-months/ (Value of NonOil Exports for 1st half of last year).

http://nationalmirroronline.net/new/nigerias-import-bill-dropped-by-n4-26trn-in-2012/ (Value of Import Bill drop last year).

http://businessdayonline.com/NG/index.php/news/76-hot-topic/51901-olam-armajaro-saro-agro-earn-n556bn-from-non-oil-exports (some of the Companies that drove this huge NonOil Exports last year).

UPDATES: http://blog.ngcareers.com/2726/nigeria-earns-n117-97bn-from-cocoa-exports-in-six-months/ (#117billion worth of Cocoa alreday Exported in just 6 months this year!!!)

.... would post others soon, Esp that Financial Times article that argued that Nigerian Economy was beginning to diversify about a week ago. I am coming...

This is good.. other African countries may now discover oil for all we care

One step at a time, we shall get there. FRESH AIR unlimited!

Patiently waiting for the steel sector

Thread deserted as ever . . . ,

Good and impressive news from the FG is a fumigant unto the souls of . . . . . .

taharqa: In very Simple terms:

Nigeria's Non-Oil Exports for a Whole Year in 2012 and 2013 was on average about $3billion Each and these figures are some of the HIGHEST since the 1970s when Nigeria Started to evolve an Oil-based Monocultural Economy- infact, just about 7 years or so ago, the fact that Nigeria exported over a mere $1billion NonOil Products, made a lot of headlines; WHILST today, Nigeria's NonOil Exports for 3rd Quarter alone (ie 3 months) is $2.64billion (nearly the figure for the Whole of last year!!!).
Slightly lower but similar figures were also obtained in the 1st and 2nd Quarters respectively. [size=14]Meaning that if the trend continue into the lat and 4th Quarter of the year, Nigeria would have Exported between $8-$10billion NonOil Export Products IN A SINGLE YEAR Compared to about $1billion only a few years ago and $3billion in the last 2 years!![/size]. And according to most Experts, this is expected to continue next year and hopefully continuously. Similarly, there have been a corresponding and very significant Decrease in Imports in Nigeria- over #800billion decrease last year alone.

Before our very eyes Ladies and Gentlemen, THE NIGERIA'S ECONOMY HAS FINALLY STARTED TO DIVERSIFY (a point also argued by a Financial Times article I read over a week ago). Clearly, the FG's (and some State Govt's) Industry-targeted Tariffs/Incentives, Financial Interventions, as well as some Ongoing Infrastructural improvements, are yielding very positive Results. Nigeria NonOil Sector is certainly on the Right Path, and gathering Pace as well.

And the Great thing is that these SIGNS of Growth (both Increase in NonOil Exports and Decrease in Imports) can be seen in virtually Every Sectors/Subsector of the Nigerian Economy (except for a few like the Oil Sector): Cement, Cocoa, Hides and Skin, Rubber, Rice, Sugar, Textiles, Cashew, Wheat, Cassava, Vegetable Oil/Oil palm, Fertilizer, Plastics (very important), Steel/Fabrication, Telecommunications, Services, and even to some extent Solid Minerals, etc etc etc. All these sectors are expected to continue to improve over time, esp as the Sector-specific policies deepens and as Investments/Reforms ongoing in such critical Infrastructure as Power, Rails, Roads, River ports, Seaports, Airports, Broadband, Finance, etc also deepens.

Plz, read these Links below for further Exposition on this very important issue:

http://businessdayonline.com/2013/07/nigeria-earns-n305bn-from-non-oil-export-nbs-2/ (Nigeria NonOil Exports for Q1 2013).

http://www.vanguardngr.com/2012/09/nigeria-exports-1-35bn-worth-of-non-oil-products-in-6-months/ (Value of NonOil Exports for 1st half of last year).

http://nationalmirroronline.net/new/nigerias-import-bill-dropped-by-n4-26trn-in-2012/ (Value of Import Bill drop last year).

http://businessdayonline.com/NG/index.php/news/76-hot-topic/51901-olam-armajaro-saro-agro-earn-n556bn-from-non-oil-exports (some of the Companies that drove this huge NonOil Exports last year).

.... would post others soon, Esp that Financial Times article that argued that Nigerian Economy was beginning to diversify about a week ago. I am coming...

Thanks for breaking it down. I was struggling to understand the OP. The whole thing sounds TOO GOOD to be true. I've also noticed a massive propaganda by Vanguard (probably sponsored by big time rice importers) to force govt to reverse the high tarrif placed on imported rice. I hope there are no plans to reduce the tarrif because that will be a serious set back..

What is most positive about this news is that Nigeria's spasmodic foray into the world of manufacturing is finally yielding dividends.
Great development!

Nigeria’s non-oil export grows 281.9% driven by manufactured goods

September 16, 2013

There are indications that the Federal Government efforts at encouraging the diversification of the Nigerian economy away from the oil and gas sector is yielding result as non-oil export earnings rose by 281.9 percent to $908.15 million in one month.

The development reflected, largely, the 952.4 percent ($614.6 million) rise in receipts from export of manufactured products (including glass and glass products and plastics) and the 68.6 percent increase in receipts from exports of industrial sector (particularly chemical), the Economic Report in the month of July by the Central Bank of Nigeria (CBN) has indicated.

A breakdown of receipts showed that proceeds of manufactured, industrial, agriculture, minerals and food products sub-sectors stood at $614.6 million, $222.3 million, $47.7 million, $13.3 million and $10.3 million, respectively.

Source

Nigeria should've been a global manufacturing giant by now.
The resources are there,the skilled Nigerian personells can be sourced both in Nigeria and the diaspora,the only thing we've been lacking is decent governance to put all these factors together,and invest in critical infrastructure.
It's nice to know that we may have begun to get it right.

This progress is in spite of the faulty structure of this country. If only we can have the UNITY of purpose take the more radical step of re-structuring this country we shall see far more greater progress. We must re-structure this country in such a way that states/regions will have control of both human and material resources in their domain and pay tax to the central govt. This will automatically solve more than 50% of the problems we'r currently grappling with, including curbing the almighty corruption.

In addition, we must remove the wasteful fuel subsidy and de-regulate the downstream sector. Hopefully the PIB currently in the NASS will take care of this

This result is commendable. The future of the economy depends on manufacturing and agriculture. It is pleasing that the country is trying to move away from being a mono-product country. As good as the result is, Nigeria is still scratching the surface in terms of the amazing potentials that abound in the country. Nigeria is a resource-rich country with millions of hectares of farmland.

The Ministers of Trade and Agriculture should keep at it while the government must also look for ways to save money aggressively and cut down on waste. It cannot be business as usual if we want results.

The President should bring out the Oronsaye Committee report on the scrapping or merger of parastatals/ministries. Also, the anti-graft agencies should be emboldened while clear and decisive efforts should be made to reform the Police and the judicial system.

Ultimately, the common people need to see the effects of results like this in terms of rates of poverty and unemployment.

Sincere 9gerian: This progress is in spite of the faulty structure of this country. If only we can have the UNITY of purpose take the more radical step of re-structuring this country we shall see far more greater progress. We must re-structure this country in such a way that states/regions will have control of both human and material resources in their domain and pay tax to the central govt. This will automatically solve more than 50% of the problems we'r currently grappling with, including curbing the almighty corruption.

In addition, we must remove the wasteful fuel subsidy and de-regulate the downstream sector. Hopefully the PIB currently in the NASS will take care of this

What's stopping this now? I don't think we need a Conference before we change the revenue allocation formular (for crude oil, federal taxes etc) or cede most federal resources to the host states (e.g. roads) or start state police.

Why can't the gradual journey towards true fiscal federalism start now?

Good one,fresh air from a fresh leader with fresh policies

[size=16]Nigeria earns N117.97bn from cocoa exports in six months[/size]

Nigeria’s earnings from cocoa beans exports in the first half of this year stood at N117,966,174,567 (about N117.97 billion), making the product the second largest non-oil foreign exchange earner for the country during the period under review.

The product, which was categorised in three export forms namely, quality raw cocoa beans, cocoa paste, not defatted, and Superior quality raw cocoa beans, has over the past two years been showing remarkable growth and a major source of revenue earnings for the country just as cashew nuts, sesame seeds, hides and skins improved their revenue earnings as the Federal Government continues to rev up its commitment towards improving the contributions of non-oil sector to the Gross Domestic Product.

According to the latest Trade Statistics Report published by the National Bureau of Statistics, NBS, quality raw cocoa beans raked in N27,072,412,608 compared with Cocoa paste, not defatted’s N15,499,462,824 and Superior quality raw cocoa beans’ N13,196,183,953, making the gross earnings to stand at N55,768,059,385.

Export revenues from Superior quality raw cocoa beans in Q1, 2013 were N62, 198,115,182. A breakdown of the non-oil sector export value based on product-by-product categorisation from January –June showed that Tech. Natural rubber in primary forms or plates topped the foreign exchange earnings chart, grossing N346,525,545,217, followed by tanned or crust hides and skins of other in dry forms which raked in N50,571,227,961. Tech.

Natural rubber in primary forms or plates earnings in Q2 stood at N188,149,818,070 while Tanned or crust hides and skins of other in dry forms raked in N45,160,028,409 during the same period. Others are, Sesame seeds, N41,513,763,308; Leather further prepared after tanning or of goats or kids N25,137,721,850; Earnings from the two products in Q2, 2013 stood at N28,068,106,833 and N16,577,829,957 respectively.

Ginger exports raked in N12,391,202,116 for the six month period compared to Cigarettes containing tobacco’s N12,173,914,200. Footwear, nes, not covering the ankle, of rubber or plastics, N16,321,323,023; Uncombed cabled cotton yarn, greater than 85%,nprs, less than14mn but less or equal to 43mn psy, N16,437,270,508; Dried, dyed, bleached/otherwise prepared cut flowers and buds, N 8,189,107,093; Printed books, brochures, leaflets, etc, in single sheets, N15,284,162,505.

Other milk and cream in packs less than 25kg not containing added sugar/sweetening earned N12,588,537,184; Wood charcoal of bamboo, N11,008,126,524; and Frozen shrimps and prawns N4,963,195,130 and Propane, liquefied, N6,497,275,322.

http://nationalmirroronline.net/new/nigeria-earns-n117-97bn-from-cocoa-exports-in-six-months/

I read through this Report which am just seeing now and am simply ASTONISHED! Completely Dazed!!

Certain things are just Striking here: 1st, Cocoa Exports in 6months of this year is already #117billion (ie about $700million), compared to about $900million for the Whole of last year and a 'mere' $216million in 2006 ie over 300% increase.

But more Striking is the FACT that whilst Nigeria's NonOil Exports a few years ago was about $1billion, at least three (3) Products would EACH surpass this figure this year alone:

-- Cocoa- both Crude and Processed- would Certainly fetch above $1billion this year (esp as it has already done #117billion in 6months);
-- Rubber- both Crude and Processed- has already fetched above $2billion this year (OMG!!! );
-- Hides, Skins and Leather- both Crude and Processed- would also cross the line this year.

And these are excluding other traditional Exports, which are also rapidly growing like: Sesame Seeds, Sorghum, Cashew Nut, Ginger, Soya beans, Plastics, Cement, Ginger, and even Textiles/Cotton (a Sector where at least 57 Companies have been Resuscitated in the last 2 years).

One can only imagine what would be happening once Nigeria starts Exporting the Big products in a few years if ongoing Investments in there yields expected Results- Steel, Plastics (more), Cement (more), Fertilizer, Sugar, Aluminum Products, Solid Minerals, PetroChemicals, Petroleum Products (Dangote and Co), and some other light/medium weight Manufactured Products.

BOTTOMLINE: The Nigerian Economy has Started DIVERSIFYING Finallly... How the helll didn't I see the Trend before Now

http://businessdayonline.com/NG/index.php/news/76-hot-topic/52826-nigeria-earns-900m-from-export-of-cocoa-products-in-2012

I would have cared if all this translated into a better life 4 the common man, it's good news anyway

iterator25: Patiently waiting for the steel sector

Absolutely. It's actually kicked off, but once it gathers momentum, we're on our way to industrialized status.

doc sholz: I would have cared if all this translated into a better life 4 the common man, it's good news anyway

IT DOES translate into a better life for the common man. If the non-oil sector is seeing expansion it means more ordinary Nigerians are having their talents put to use and getting paid for it, from farmers to bankers, and from retailers to labourers and architects.

The figures being quoted are they the total sum of transactions for each sector, if so what revenue accrues to the federal government, and at what point will the national budget begin to be based on the the revenue agccrued by non-oil revenues, rather than just the sales oil crude at a
All the same, this is indeed cheering news.

iterator25: Patiently waiting for the steel sector

thats where my eyes has been for ages now. That steel sector will make the difference cos it could comfortable displace oil as the main source of revenue but didn´t they have something with an australian company as I heard

Just about 6 days ago:

[size=18]Nigeria’s cement production surpasses South Africa[/size]

A report conducted by the financial advisory company Renaissance Capital (RenCap) has revealed that Nigeria is now the largest cement manufacturer in Sub-Saharan Africa and the third largest in the Middle and East Africa regions (behind Egypt and Saudi Arabia) due to an increase in production capacity in the country.

According to the report, the Nigerian cement industry capacity has reached 28 million tpa. South Africa is currently producing at a rate of 18.3 million tpa and the rest of the region combined has a capacity of 62 million tpa of cement. The introduction of the Backward Integration Policy (BIP) in the Nigerian cement sector has also seen the industry’s production almost double between 2005 and 2012. RenCap has predicted that Nigeria will continue its high production levels, peaking at around 50 million tpa in 2020.

The strong performance in Nigeria has also been mirrored in the share prices of cement companies such as Dangote Cement, Lafarge WAPCO, Ashaka and the Cement Company of Northern Nigeria (CCNN), which are returning at a higher rate than the Nigerian Stock Exchange All Share Index.

David Nangle, leader of the RenCap research team, told local press that the cement market in Nigeria has changed considerably over the past few years due to rising demand, increased investment, economic growth and favourable government regulation. The company is reported to be optimistic about the sustainability of Nigerian cement demand and production in the long-term.

http://www.worldcement.com/news/cement/articles/Nigerias_cement_production_surpasses_South_Africa_461.aspx#.Upx7HNJJOX8

As at 2002/2003, Nigeria could only produce 2million tons per annum and was the largest Importer of Cement in Africa (by far) as well as one of largest importers in the world (I think at one time, the 2nd or 3rd largest). TODAY ( less than 8 years later), Nigeria has not only STOPPED the importation of Cement but has even started Exporting some quantity. This it has done by rapping up Domestic Production from 2million tons per annum to over 28million tons per annum (almost HALF of the entire Africa's 62million tons per annum Production volume) and has now significantly surpassed the 18million SA figures (a country that previously had Production Volumes about 5times more than that of Nigeria's), just as there are still huge rooms for further growth. All these in less than 8years (from OBJ to Yar'adua to GEJ)!!!

Some Sectors where this same Backward Integration Policy are been applied include Sugar, Cassava, Rice, Palm Oil, and even the recent introduction Automotive Policy. If we keep doing what we are currently doing, we very likely going to encounter similar Successes in these Sectors/subSectors as well....


http://www.ventures-africa.com/2013/05/nigeria-saves-1-8m-through-local-cement-production-trade-minister/ (last year production's volume)

I've read about a lot of economic goodies on paper. An example is India where to the best of my knowledge is the only stable country worse than Nigeria in living conditions. Ordinary people like myself will only believe this if cocoa farmers become wealthier than oil merchants and communication giants. Maybe when shoe makers in Aba become wealthier than oil dealers in Port-Harcourt.

drnoel:
thats where my eyes has been for ages now. That steel sector will make the difference cos it could comfortable displace oil as the main source of revenue but didn´t they have something with an australian company as I heard

I hate hearing the word 'oil'

ROSSIKE:

Absolutely. It's actually kicked off, but once it gathers momentum, we're on our way to industrialized status.

what are they doing at that site(ajaokuta )? Heard the Russians are around..

the thread would definitely be dry because it doesn't favour APC power ambition
whether they like it or not they will use their mouth to confess fresh air

solomon111: Nigeria should've been a global manufacturing giant by now.
The resources are there,the skilled Nigerian personells can be sourced both in Nigeria and the diaspora,the only thing we've been lacking is decent governance to put all these factors together,and invest in critical infrastructure.
It's nice to know that we may have begun to get it right.

true

Idonbilivit!!!!

In ibo's voice: 'oil makes 90% of naija's GDP. Na we dey feed the nation'

Your eyes go clear...siddon dey look

Abagworo: I've read about a lot of economic goodies on paper. An example is India where to the best of my knowledge is the only stable country worse than Nigeria in living conditions.

Obviously the best of your knowledge is nothing to write home about.

Ordinary people like myself will only believe this if cocoa farmers become wealthier than oil merchants and communication giants. Maybe when shoe makers in Aba become wealthier than oil dealers in Port-Harcourt.

What absolute garbage. The Nigerian govt does not control international commodity prices, including oil prices, so saying you will only accept diversification is occurring under the circumstances you outlined is truly thoughtless.

SLIDE waxie: Idonbilivit!!!!

In ibo's voice: 'oil makes 90% of naija's GDP. Na we dey feed the nation'

Your eyes go clear...siddon dey look

Kindly ignore this man. He's trying to derail this thread. This thread is about the transformation ongoing in Nigeria and not about Tribal bashing.

Kudos to Pres Goodluck and his fresh air team

Abagworo: I've read about a lot of economic goodies on paper. An example is India where to the best of my knowledge is the only stable country worse than Nigeria in living conditions. Ordinary people like myself will only believe this if cocoa farmers become wealthier than oil merchants and communication giants. Maybe when shoe makers in Aba become wealthier than oil dealers in Port-Harcourt.

STOP penning stuffs that are Ridiculously Nonsensical, guy... Can we all put aside Smallmindedness, Pettiness and whateva perceived Political cleavages we may hold for a few good seconds, and discuss very important issues that affect OUR country and Our country's future with d Seriousness it deserves? Can we be Serious for once??...

ROSSIKE: Obviously the best of your knowledge is nothing to write home about.

What absolute garbage. The Nigerian govt does not control international commodity prices, including oil prices, so saying you will only accept diversification is occurring under the circumstances you outlined is truly thoughtless.

ROSSIKE I do respect you as someone who loves and believes in Nigeria like I do but I'm only being real here. There is no evidence to back these claims except of course the experts that made the claim. Try and go to the streets of Ajegunle or any other densely populated area and claim things are better, I swear you won't come out alive. I referred to India because the media and the so-called experts think India has advanced technology and economy.

http://news.oneindia.in/international/india-leads-world-in-suffering-gallup-poll-1348542.html

Or better still read this. There's no real increase in standard of living for majority but rather a decrease for majority. Maybe the new private jet owners that made money by being accomplice to the politicians in stealing are the yardstick for these insinuations.

http://www.gallup.com/poll/165761/despite-nigeria-economic-growth-few-good-jobs.aspx?utm_source=tagrss&utm_medium=rss&utm_campaign=syndication

So why are there still no jobs even with the so-called economic growth?