Bad Policies, Soaring Exchange Rate Undermine Export Commitments | The Guardian Nigeria News

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Poor government policies, lack of non-oil export incentives and high exchange rate, among others, have been identified as factors currently affecting the production of locally made products for the export sector in the country.

It comes as the National Bureau of Statistics (NBS) revealed that the nation recorded a trade deficit of around 3,023.50 billion naira in the third quarter of 2021 as the value of imports continued to exceed exports.

Group chairman, Manufacturers Association of Nigeria Export Promotion Group (MANEG), Ene Dafinone, who revealed this while speaking about his activities in the country, said commodity companies still groan to survive under the harsh economic policies of the country. government and the effects of the pandemic. .

He said that since the pandemic and the aftermath of the closure of land borders, exporters are virtually grappling with reduced international demand coupled with domestic challenges such as a high and growing exchange rate; high cost of energy; multiple levies and taxes; port congestion; the endless stalemate of Apapa; infrastructure deficiencies and smuggling among others.

According to him, Nigerian exporters still complain about these negative impacts of these export challenges on their export business since last year and have yet to overcome them.

Dafinone said, for example, that the outbreak of the global pandemic was seen as the main contributor to the decline in the value of manufactured goods exported to the world, including that of Nigeria, in 2020.

The SNB in ​​its latest report on foreign trade in goods, revealed that total exports amounted to N5,130.30 billion in the third quarter of 2021, showing a growth of 1% compared to the second quarter of the year. same year and a growth of 71.38% compared to the third quarter in 2020.

“Exports in the third quarter of 2021 were still dependent on oil,” the NBS said.

“Crude oil exports recorded N4,026.18 billion and it remained the main product of total exports (78.48%), while non-crude oil was valued at N114.1 billion or 21 , 52 percent of total exports, of which only non-petroleum products contributed 546.27 billion naira representing 10.65 percent of total exports during the quarter under review.

According to the report, Nigeria’s main trading partners were India (14.78%), Spain (12.22%), Italy (8.69%), France (7.08%), the Netherlands (4.78%).


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