Nigeria needs export-focused industrialisation, to transform the economy Post

Happy Tuesday and Welcome to Export Brief. A 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 750 words, a 3-minute read.

IN BRIEF

⚡ Situational awareness: 1. Nigeria’s new president Bola Ahmed Tinubu has been sworn in. 2. Nigeria raises interest rate to 18.5% from 18%, says the measures were taken to rein in inflation. 3. Gross Domestic Product (GDP) grew by 2.31% (year-on-year) in real terms in Q1 2023. This growth rate declined from 3.11% recorded in the first quarter of 2022, and 3.52% in the fourth quarter of 2022, according to data released by NBS recently.

• Nigeria needs export-focused industrialisation, to transform the economy

• Government, charcoal export group plant trees to reforest, combat climate change

NON-OIL EXPORT

1 big brief: Nigeria needs export-focused industrialisation, to transform the economy

The African Development Bank (AfDB) has said Nigeria must shift away from just import substitution to export-focused industrialization as this will unlock the bottlenecks hampering 85 percent of its economy.

🇳🇬Why it matters: Nigeria’s economy is one of the most diversified in Africa and with its oil sector only accounting for only 15 percent of the GDP and 85 percent accounted for by other sectors, Nigeria’s challenge is not diversification but rather revenue concentration. He said that the oil sector accounts for 75.4 percent of export revenue and 50 percent of all government revenue.

Way forward: For faster growth, the incoming administration must decisively fix the issue of power once and for all because there is no justification as to how Nigeria does not have enough power.

💬What they're saying: “The solution therefore is to unlock the bottlenecks that are hampering the 85 percent of the economy. These include; low productivity, poor infrastructure and logistics, epileptic power supply, inadequate access to finance by SMEs. Nigeria must shift away from just import substitution to export focused industrialization. This is how our economy can thrive” - Dr. Akinwumi Adesina, President of AfDB

Bottom line: Nigeria’s private sector is hampered by the high cost of power and providing electricity will make Nigeria’s industry more competitive, especially in the context of the African Continental Free Trade Area (AfCFTA).

TRADE ROUNDUP

SUSTAINABILITY | Government, charcoal export group plant trees to reforest, combat climate change

• The Charcoal Export Legality and Compliance Group, in collaboration with the Federal Government, has flagged off a symbolic tree planting project in Iseyin area of Ibadan Oyo State.

UPCOMING EVENT

A MESSAGE FROM GGI

Climate Action: With exploration comes the need for expertise and sustainability

At GGI, we combined expertise, innovation and sustainable practices in meeting our client's engagements. Our actions to mitigate climate change are central to making the world a better place. Learn more.

IEOM

The Institute of Export Operations & Management, as a Trade Support Institute is out to stimulate and facilitate non-oil export in Nigeria. Our vision is to become the foremost independent provider of export training and best research practice in Nigeria. In line with our mission, our intensive training progams both online and on-premise among others are designed to optimize your trade capacity and knowledge. We actualize this through the following:

• Access to Low-Interest Loan from our partner Bank*

• Export breakfast meetings

• The Export Brief magazine

• Seminars and workshops

• Banker and Exporter training

• Trade access and facilitation

Trade Intelligence Unit (TIU) is a division of IEOM Nigeria, providing export trade information, research, insights and analytics for organizations, agencies of government, businesses and individuals to help them make informed decisions. We help our clients by leverage on our proprietary tools to create access into our rich trade database in delivering innovative solutions.Join us in our quest to make Africa's largest economy to be self-sufficient through non-oil export and become a member of IEOM.*We have partnered with Standard Chartered Bank Nigeria in creating access to low-interest loans for our MSMEs members.For enquiries on memberships, trainings and collaboration on sponsorships of events, newsletters and magazine you can reach us on+234 909 332 8361, +234 808 302 [email protected].

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DATA WATCH

• Africa's 50 million small businesses make up 90% of its firms & employ 60% of its workers.

TWEET OF THE WEEK

PHOTO OF THE WEEK

A NEW BEGINNING: Bola Ahmed Tinubu, has been sworn in as the 16th president of Nigeria at a ceremony to inaugurate the new administration in Abuja.