Data from a report by the International Trade Centre revealed that the loss from Nigeria’s unrealized export potential is sitting at a whopping N4.6 trillion ($3 billion).
- Nigeria’s unrealized export potential is at N4.6 trillion ($3 billion
- Top unexploited products include urea, cocoa, cashew nuts, and electric energy
- Challenges affecting export revenue include product quality, bureaucratic inefficiencies, and manufacturing capacity
Some of the export products as seen on the Punch, include “urea, with actual exports valued at $987m and an untapped potential of $520m. Cocoa recorded export volumes worth $708m, leaving $404m in unrealized potential.”
The report also revealed that cashew nuts have $437 million in unrealized potential and $220 million in actual exports.
Exports of aluminum, tin ore, and sesame seeds totaled $319 million, $220 million, and $138 million, respectively, while unrealized potential was estimated to be $264 million, $155 million, and $83 million.
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Electric energy exports were $112 million, with an unrealized potential of $48 million.
Ginger, oil cakes, shrimp, and rubber exports totaled $61 million, $96 million, $68 million, and $61 million, respectively, with unrealized potential of $64 million, $96 million, $82 million, and $25 million.
Expert assesment on export
Unekwu Onuche, an associate professor at the University of Africa in Bayelsa State, pointed out three major issues affecting export revenue, which were product quality, bureaucratic inefficiencies, and manufacturing capacity, as seen on the Punch.
“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,” he said.
“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.
“Nigeria earned $2.7bn from non-oil exports in the first half of 2024, a 6.26 percent increase from the $2.53bn recorded in the same period in 2023,” the Executive Director of the Nigerian Export Promotion Council, Nonye Ayeni, revealed.
The executive director credited this expansion to efforts fostering export culture, increased demand for Nigerian goods, and political stability after the general elections in 2023.
