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It's always Happy Tuesday with Export Brief but here we are reaching you on Thursday. We have been on some housekeeping lately. We've missed you and we're happy to be back with juicy brief. Welcome to Export Brief, the weekly newsletter with insightful developments and trends on non-oil export trade from Africa's largest economy and from the global stage. If you enjoy EB, share it with friends. 

• ⏲ : This edition is 1515 words, a 5-minute read.

IN BRIEF

• RT200: Harnessing ideas for $200bn non-oil exports

• How Nigeria can sustain increased export – Analysts

• Lekki Port: With completion in sight, first ship berths

• Soybean: US Soybean Export Council, Nigerian stakeholders meet to strengthen value chain

TRADE SUPPORT

RT200: Harnessing ideas for $200bn non-oil exports

The Central Bank of Nigeria (CBN) in partnership with stakeholders and banks continued with the implementation of the Race to $200 billion Non-Oil Export Earnings dubbed "RT200" programme, by conveying the maiden edition of the biennial Non Oil Summit with the theme ‘Setting the Roadmap toward Achieving RT200’ per Vanguard.

In more detail: The program launched in February this year, RT200 comprises a set of plans, policies, and programmes designed to increase the nation’s earnings exclusively from non-oil exports to $200 billion in foreign exchange repatriation, within the next five years.

• The RT200 initiative is designed to be implemented through five anchors: Value Adding Exports Facility (VEF); Non-Oil Commodities Expansion Facility (NCEF); Non-Oil FX Rebate Scheme (NFRS); Dedicated Non-Oil Export Terminal; and the hosting of a Bi-annual Non-Oil Export Summit

Why it matters: Three months after the programme was introduced, the CBN commenced the implementation of the Non-Oil FX Rebate Scheme (NFRS). The scheme was designed to incentivize exporters in the non-oil export sector to repatriate and sell their export proceeds in the local foreign exchange market and earn a rebate.

• Under the scheme, the CBN pays non oil exporters N65 for every $1 repatriated and sold at the I & E Window to Authorised Dealers and Banks (ADBs) for other third party use, and N35 for every $1 repatriated and sold into I&E for own use on eligible transactions only.

• The payment of the rebate, which is quarterly, commenced in April with 150 exporters receiving N3.5 billion as rebate for selling $60 million export proceeds through the I&E window.

What they're saying: “In continuation of the implementation of the RT 200 programme, we are gathered here today for the maiden edition of the biannual non-oil export summit to harness ideas on how we can increase the value and volume of export in the country, and improve the availability of foreign exchange therefrom. As things now stand, we really have very little choice left but to look inwards and find innovative solutions to our problems. - Mr. Godwin Emefiele, Governor of Central Bank, Nigeria.

• “Other objectives of the summit include understanding trends and lessons from other countries including regional and global market outlook; share best practices across the agriculture exporting value chain and guidance on how to obtain financial assistance and to identify opportunities for improving the performance and viability of non-oil exports,” he said adding that ultimately, the CBN and its partners, through the summit, seek to launch the development of a comprehensive Non-Oil Export Optimisation framework. - Mr. Osita Nwanisobi, Director, Corporate Communication Department, CBN

Between the lines: The summit constituted a committee of key agencies of government and operators to be headed by Mr. Herbert Wigwe, CEO of Access bank to look into the challenges with a view to making actionable recommendations to the CBN within one month.

The bottom line: There are identified boottlenecks to seemless movement of cargos at the nation's ports. Consequently, the bank with stakeholders said they were commited to innovative solutions to these challenges. Mr Emefiele charged key players (i.e. ports authority, customs and other agencies) to in the short run, look at how we can immediately create a dedicated export route for exporters, so that their goods can leave. Many of those containers that bring goods into the country go out empty because of these problems.

TRADE ROUNDUP

TRADE FACILITATION | Soybean: US Soybean Export Council, Nigerian stakeholders meet to strengthen value chain

• The United States Soybean Export Council (USSEC) met with Nigerian soybean stakeholders, agribusiness experts, importers and executives of local soybean processing and milling companies to discuss agribusiness strategies aimed at improving Nigeria’s soybean value chain which is an important element of food security in Nigeria.

EXPORT | How Nigeria can sustain increased export – Analysts

• To curb the current inflationary pressure, government needs to address the security concerns causing disruption to agricultural activities.

PORTS | Kaduna dry port to commences domestic export warehouse operation

• According to the authority, KIDP is set for commissioning to pilot the DEW services as the most equipped facility in Nigeria with a modern laboratory to check the quality of exports that would be processed through the dry port.

• About 10 trucks are ready for deployment and that KIDP has judiciously utilised the Export Expansion Facility Grant from Federal Government under the office of the Vice President to achieve hitch-free logistics.

UPCOMING TRAINING

PORTS

Lekki Port: The first ship berths, as it nears completion

Expanding Nigeria's ports capacities and operational capabilities remain critical for trade development. Operators have experienced hardships and inefficencies due largely to overwehlming congestion, poor infrastructure and operational enviroment. In a bid to boost it's earning capacity, decongest and eliminate operational snags, Lekki deep sea port was developed to handle the ever-increasing cargos streaming to Apapa and Tincan ports in Lagos.

In details: A multi-purpose, Deep Sea Port at the heart of the Lagos Free Zone, Lekki Port is one of the most modern ports. With construction nearing completion at 94.43% as of date, the dredging and reclamation 97.9%, quay wall 95.64%, breakwaters 90.87% and land side infratructure at 88.78% completion respectively. The port is expected to commence full operation by September this year.

Why it matters: The arrival of the first vessel to berth at the port was a boost to the vaibility of the port. The “Zhen Hua 28” brought 3 Ship to Shore cranes and 10 Rubber Tyre Gantries for use in the container terminal.

• These cranes, touted as the most sophisticated port equipment, will be used for the first time in Nigeria at Lekki Port, putting Nigeria at the forefront of container operations in West Africa.

The bottom line: Ports play a very important role in any nation's economy. Effective development and full utilization of ports like Lekki, Onne, Calabar and Barro (currently being dredged) are essential to boosting trade and investment of Nigeria.

IEOM

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IN THE NEWS

DATA WATCH

📊 By the numbers: Nigeria’s exports to the United States have recorded the third annual growth in 10 years, following an increase in 2021, which is also the first of such since 2017.

• According to the data by the African Growth and Opportunity Act (AGOA), which shows that exports have been declining every year since 2011, but for an increase in 2016, which bucked the trend. It grew again in 2017, before the decline restarted in 2018 until the 2021 figures showing a third growth in 10 years.

TWEET OF THE WEEK

PHOTOS OF THE WEEK

EXPORT MASTERCLASS EXCURSION: IEOM masterclass training participants were on a training excursion to Nigerian Customs Service (NCS) facility at Onne Port in Port Harcourt, Rivers State on 16th June, 2022. The IEOM delegation was led by the institute's CEO, Mr. Ofon Udofia. 📷 : IEOM