One of the principal objectives of the network is to engage with public sector regulatory agencies and export trade support institutions to craft strategies, programs and activities that will lead to an increase in Nigeria’s participation in global trade, with the direct impact being an enhancement of foreign exchange earnings from the non-oil export sector. The flagship event, which is also the vehicle for actualizing the objective is the annual Non-oil Export Conference, Exhibition and Awards (NECEA)

The event is envisaged to bring together critical stakeholders in the non-oil sector including top officials of government, civil society, private sector, the media and academia to dialogue on how to refocus the country’s non-oil sector, for a more effective participation in global trade, especially within the framework of the recently operationalized African Continental Free Trade Agreement.

The NECEA is also very necessary now given the current state of Nigeria’s economy as evident in the downward spiraling of the country’s currency vis-à-vis the US Dollar and other world currencies. There is certainly a need to revitalize the economy primarily through non-oil exports.

The proposed theme for NECEA 2021 is “Rebuilding Nigeria’s Economy through Non-oil Exports: A Strategic Imperative”

Objectives of NECEA

The following are the objectives of NECEA:

1. Provide a forum for serious public-private sector dialogue to reposition non-oil exports as a major foreign exchange earner and significant contributor to Nigeria’s GDP.
2. Design the appropriate strategy to enable Nigerian exporters effectively launch into the new single African market.
3. Promote the needed application of modern technology to drive non-oil export within the global “new normal”.
4. Use the virtual exhibition to showcase new opportunities in Nigeria’s and export-ready products and services.

Given that all the nation’s trade support institutions are domiciled within the Ministry of Industry, Trade and Investment, NPNEN-NECEA 2021, would provide an appropriate platform for each of the parastatals to come together with the full complement of Nigeria’s exporters to discuss their various strategies. NEPC, for example, has developed a robust Zero-Oil Plan, which it has advocated over the past few years. NEPZA has also introduced innovations in Free Zone practices that now make it easier for relatively “smaller” players to enjoy the benefits of Free Zones and Special Economic Zones status. The new MD at NEPZA certainly has several offerings to the non-oil export community and this event should provide an appropriate platform to launch these. NIPC, should also be able to use the platform to market Nigeria as a veritable Industrial Outpost where-in foreign investors could be invited to use Nigeria as production base for their already established markets abroad.

It is needless to say that the non-oil export sector has taken a nosedive since the technical suspension of the Export Expansion Grant about four years ago. The Ministry, through NEPC, has been working on several alternatives to EEG as policy support instruments to revive Nigeria’s export performance and to enhance the competitiveness of the country’s exports in the international marketplace. NPNEN-NECEA will therefore provide an appropriate platform for government to present its alternative policies with a view of securing the buy-in of the targeted operators.

NECEA is a hybrid event with both physical and virtual formats. The physical event will be held in Abuja, Nigeria while participants all around the world can join via Zoom.

The event will have 3 segments:

• Conference
• Virtual Exhibition of Products and Services
• The Awards

Exporters under the auspices of Network of Practicing Non-oil Exporters of Nigeria, NPNEN, Wednesday, cried out and called on Central Bank of Nigeria, CBN, to revisit pre-export policy as it threatens export business, economic growth, and diversification via the non-oil sector.

This was contained in a statement signed by the President, NPNEN, Ahmed Rabiu, where it made it clear that the impact of the policy is an indication of the horrific situation at the Apapa Port in Lagos.

The statement also pointed out other discouraging situations that have negatively impacted export business including disincentive to formal exports out of Nigeria; lack of capacity to enable the agencies to efficiently and effectively handle the volume of shipments from the different parts of the country.

NPNEN is an umbrella association with a primary vision to create a hub of interconnected players in the non-oil export sector, collectively committed to leading the advocacy for the creation of an enabling environment for non-oil export trade, and ensure a larger share of global markets for Nigeria’s physical goods and services. The statement reads in part,

“As players in the sector and direct beneficiaries or victims of Government’s policies, we have deemed it necessary to issue this press release in order to offer some suggestions on how the recently pre-export procedures introduced by the Central Bank of Nigeria, (CBN) requiring exporters to process electronic Nigeria Export Proceed (eNXP) form, can be properly implemented for optimum compliance that ensures a win-win outcome for the Nigerian Government as well as exporters.

“While we acknowledge that this procedure is well-intended by the CBN, and has the potential to move the nation further closer to global best practices of automated processes and streamlined documentation, we will like to bring to the notice of the CBN that the transaction dynamics, as being currently implemented, is doing more harm than good by creating a lot of bottlenecks that were not part of the process before.

“We also acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.  However, the reality in the field shows that the process is causing undue delays and consequently, encouraging corruption. The recent report in the December 9, 2020 edition of The Guardian Newspaper to the effect that about N868 billion worth of goods bound for export is stuck at the ports dictates a compelling need for urgent attention to reverse the ugly trend.”

The statement also explained that “The new procedure requires that an export transaction be initiated through eNXP processing on the Trade Monitoring System (TRMS), after which the Pre-shipment Inspection Agent (PIA) the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.

“The PIA then issues a Clean Certificate of Inspection (CCI) while the Customs issues the Single Goods Declaration (SGD). For the PIA to issue the CCI, the exporter is required to upload a Certificate of Origin (CoO) as one of the supporting documents for the eNXP.

“The PIA is also required to upload the CCI to the TRMS (M) and until this is done, Nigeria Customs Service (NCS) will not issue the SGD. After issuing the SGD, the NCS is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.

“These several layers of activities are generating serious problems in the new process and are now constituting a disincentive to formal exports out of Nigeria. First of all, asking for CoO as a compulsory requirement for pre-export documents when the agency issuing this document requires a copy of the Bill of Lading (a document obtained after shipment) is a contradiction.

“To get the Bill of Lading number and container number means that an exporter will remain stuck if he does not find a way to get these Bill of Lading details from the shipping line before the original is issued. Another problem is that there is no timeline given to the PIAs and Customs to issue and upload this document.

“Also, there is a lack of capacity to enable the agencies to efficiently and effectively handle the volume of shipments from the different parts of the country. Besides, frequent system downtime and network issues hinder or delay the issuance of and uploading of documents onto the system. “The protracted delays caused by all these new processes are causing deterioration and losses for Agro commodity exporters, forcing many exporters to miss their allocated shipment periods, and consequently, loss of future business opportunities.”

The statement further pointed that, “Another issue that is making exporters not to want to document their export is the exchange rate. What CBN did not realise is that as the exchange rate of Naira to the dollar is rising, the local market price for the products is also rising but the export market price remains stable or even declines from the impact of COVID-19. The statement also frowned at the way the association was not carried along in the process of formulating the policy,

“Most importantly, releasing circulars and introducing procedures without engaging the practitioners has the potential risk of ending up counter-productive. “We, therefore, request that the CBN consider the need to urgently have online stakeholders meeting with the exporters, NCS and the PIAs and other relevant players in the documentation chain with a view to discussing all other issues and agreeing on the best and practicable way forward.”

However, the statement commended the apex bank for automating the export process but will impact hugely if it captures inputs from players.

“Once again, NPNEN commends the CBN in finally automating the export process in Nigeria.  The benefits of the initiative will be huge if its design captures the evidential inputs of the players.  This is where the role of the private sector, in this case, the practicing exporters comes to play.

“Basically, what is required for exports to grow and thrive is to build supply-side capacity and appropriate systems needed to expand trade in order to benefit from enhanced integration into the world economy.

“This is the core focus of export development and this is what NPNEN was created for – to provide evidence-based input from the field that will enable the formulation of proactive policies that will enable export growth to happen.

“The Central Bank of Nigeria no doubt has the power (and the money) to enable export to grow, but they cannot and must not do it in isolation.  The dialogue approach will definitely help the CBN’s desire to see more inflow of non-oil export dollars into the nation’s economy, and a speedy reversal of the recent slide in the country’s currency”, it concluded.

NPNEN first Non-oil Exporters Town Hall Meeting

NPNEN has as one of its principal objectives engagement with public sector regulatory agencies and export trade support institutions to craft strategies, programmes and activities that will lead to an increase in Nigeria’s participation in global trade with the direct impact being an enhancement of foreign exchange earnings from the non-oil export sector. Believing strongly in an export-driven economy.

In pursuit of the above goals, NPNEN organised its first Non-oil Exporters Town Hall meeting on the 5^th of February 2021. This meeting served as an avenue for policy makers to meet and connect with exporters, to periscope and find solutions to the key issues impacting the sector. 

Report from the Non-oil Exporters Town Hall meeting

Meeting format: Hybrid (Physical + Virtual)

The Non-oil Exporters Town Hall Meeting, themed, “Exporting from Nigeria; The Good, the Bad and the Ugly” held by the Network of Practicing Non-oil Exporters of Nigeria (NPNEN) on Friday, 5th February, 2020. Meeting commenced a few minutes past 10.00AM.

It brought together the major stakeholders in the Non-oil Export sector and regulatory bodies alike, totaling about 130 participants. In his opening remark, Alhaji Ahmad Rabiu, the NPNEN President identified that the purpose of the meeting was to bring about a better collaboration amongst non-oil exporters in Nigeria and present them under one umbrella. He also pointed out that it was time to address non-oil export issues and suggest working ideas towards boosting the sector.

The major presentation for the day was taken by Mr. Bamidele Ayemibo, the Lead Consultant at 3T Impex Trade Academy, who spoke on the good and bad sides of exporting from Nigeria, and Mr. Olufemi Boyede, CEO, Koinonia Global Inc., who spoke on the ugly aspect and opened up the discourse for practical solutions.

Speaking on the ‘good’, Mr. Bamidele Ayemibo listed a range of products with great export potential for Nigeria under the African Continental Free Trade Area (AfCFTA) and how much of a multi-billion dollar potential they hold. He mentioned how products like leather footwear, plastic, toilet paper, amongst others, hold great export potential. Bovine (cow meat), for example, has a 559 million dollar potential market and glass bottles, an untapped 450 million dollar market.

He went on to say that Nigeria is a top producer of major agricultural products worldwide and great opportunities abound in these markets if they can be adequately tapped into. Nigeria, for example, is the world’s largest producer of Cassava and Palm oil but sadly, Thailand and Indonesia are the world’s largest exporters respectively.

On the ‘bad’, he sadly noted that many factors ranging from low and inadequate information, pricing, logistics, promotion, economy and access to finance and insurance, amongst others, are crippling exports in Nigeria.

“…These are facts, risks and dangers we must address, otherwise, we will remain left behind as a nation”, Mr. Olufemi Boyede said as he talked on the ‘ugly’. He highlighted how cumbersome export procedures and documentations are and how the high rates involved in the export process are stagnating the sector.

A panel session came up after and panelists were asked questions that revolved around birthing solutions to the existing problems affecting the non-oil export sector in Nigeria.

Asked on what the future of Nigeria exports holds as regarding the AfCFTA, another participant, Mrs. Rita Owaseh emphasized that Nigeria has what it takes to being the envy of the world but her unaddressed challenges have made that hard to achieve. She called for better road networks for ease in transfer of products and stronger synergy amongst regulatory organizations.

Making further contribution to the AfCFTA and how it could help Nigeria address her export challenges on time, Mr. Ede Dafinone, the Chairman of MAN Export Group, opined that Nigeria has the resources and capacity to make this happen. In his words, “…in terms of preparation, yes, we are slow…but I still see us being able to champion trade in Africa from Nigeria”

Representing the Financial Department of the Central Bank of Nigeria (CBN), Mr. Adeleke Ademuyiwa mentioned a number of ways the CBN is greatly supporting bringing up newer policies to boost the non-oil export sector. He called for more brainstorming and active participation by stakeholders on how these policies can be effectively applied for optimal results.

The panel session was followed by questions and comments from participants and a majority revolved around the call for regulatory agencies to do more in easing the burden of exports in Nigeria.

In defense, Mrs. Chudi-Anaukwu Chioma, representing the Standards Organization of Nigeria (SON), spoke on how regulatory bodies are out to ease the export process but exporters should get more sensitized on the procedures so as to avoid unnecessary delays. She made it clear that the SON has offices in all 36 states and exporters are free to walk in to get the information they need.

As a response, Mrs. Kadiri Haleemat, representing the National Agency for Food and Drug Administration and Control (NAFDAC), strongly noted that exporters won’t have any issues with the NAFDAC as long as their products meet all the required health standards. She said regulatory agencies won’t reduce their standard because the country’s image is at stake the moment the products leave our shores.

Mrs. Rita Owaseh further called for a synergy of these regulatory agencies so as to curb the frustration exporters face going from one agency to the other. In his concluding remarks, Mr. Olufemi Boyede called for more practical methods to reduce port congestion, increased participation from regulatory bodies and stressed that NNPEN is ready to be the voice of exporters in making the government see things from their view.

The closing remarks were taken by the NNPEN President, Alhaji Ahmad Rabiu and the program came to a close at 12:15pm.

CIRCULAR ON NON-REPATRIATION WILL CRIPPLE NON-OIL EXPORT BUSINESS IN NIGERIA – RESPONSE FROM EXPORTERS

While we were eagerly awaiting an invitation from the Central Bank of Nigeria to seek the input of the real players in the industry – practising exporters -, we, Network of Practicing Non-Oil Exporters of Nigeria, were shocked to receive the apex bank’s recent circular with reference number TED/EXP/CON/NES/01/001 and dated January 13, 2021 which directs commercial banks to bar and blacklist any exporter who has not repatriated export proceeds in the last two to three years. The circular, indeed, instructs that such exporters should be barred from accessing all banking services, as contained in an earlier circular with reference number CBN/FEM/FPC/GEN/01/013 and dated October 26, 2017.  As the Umbrella network for all players in Nigeria’s non-oil export value-chain, NPNEN had issued a Press statement less than two weeks ago, decrying the autocratic approach of the Central Bank of Nigeria in issuing an equally draconian directive to shipping companies not to take on board any consignment that has not yet completed the newly introduced e-NXP.  This flurry of “military” instructions is even more worrisome as we believe that what Government (through its assigned agencies such as the CBN, should be doing at this time is roll out a basket of incentives capable of boosting non-oil exports and making the sector, a veritable and significant generator of the much-needed foreign exchange for Nigeria.  While the CBN has the right to explore all avenues to shore up the country’s foreign reserves, it must tread carefully to avoid a ricochet effect that actually ends up sending exporters to the smugglers’ routes and thereby destroying the very intention of the bank to increase foreign exchange inflows. We hasten to advise that it is very important for the CBN understand that churning out orders, rather than calling the players to a round table where the bank’s (government’s) plans are presented and the players are given the opportunity to explain how each of the steps being mooted will affect export performance, portends a very grave danger.  These wrong signals might persuade the exporting community that the federal government is not concerned about their plight and does not care about the huge losses they are currently incurring.

For the understanding of the CBN, most Nigerian exporters actually repatriate their export proceeds, but have been doing so through their “ordinary Domiciliary accounts.  The CBN’s preference for export proceeds to flow into special Domiciliary accounts designated for “Export Proceeds Only”, is yet to catch ground within the export community and this is where the banks communication department needs to do more work.  We believe that CBN’s corporate strategy and Communications departments should be interested in finding out why the exporters are not repatriating the funds through the special Domiciliary accounts rather than jump to the erroneous conclusion that proceeds are not being repatriated. It may interest the bank to know that this is another policy of the bank denying exporters the unfettered access to their hard-earned hard currency (when brought in through the export proceeds Dom account) which has pushed many of the exporters to avoid using this account.

NPNEN would like to, once again, extend its arm of friendship to the CBN and to all MDAs designated to develop and promote non-oil exports from Nigeria to orchestrate a roundtable (or at least, attend one that is being presently arranged by NPNEN where these issues can be tabled and ironed out. Government must understand that Nigeria’s current strength in non-oil exports is in the agro-allied sector where trade in a greater percentage of commodities being exported are controlled in the various international commodities exchanges. 

The Nigerian exporter buys the commodities at terminal prices quoted on the London Commodities exchange, pays a multiplicity of unnecessary levies, taxes and tolls, and still end up in the same market with competitors who do not face these challenges.  To buy the commodities, the Nigerian exporter obeys the pull of forces beyond his control. Ditto when he is selling.  It would therefore be unimaginable to expect the exporter to bring the proceeds into an account where he will also not be able to have a say in the rate at which his export proceeds are sold!  Clearly, until there is a convergence in the exchange rate, the price discrepancy in the parallel market will render export business unprofitable to most exporters.

Again, NPNEN wonders why the same CBN that allows diaspora remittances to be accessed by the beneficiaries and sold however and to whomever the “owner” desires, is coming at Bonafede exporters with a sledgehammer. CBN cannot turn its eyes away from the multiple other values that export business has been contributing to the nation’s socio-economic space.  These include job creation and industrialization.

NPNEN therefore recommends that, in the immediate, if the CBN wants the exporters to repatriate export proceeds through the export domiciliary accounts, they should be allowed to access it freely, as provided for in the unfettered access policy that was in existence before it was stopped in 2016 (when the CBN redefined the concept of unfettered access). The bank should also revisit the exporter’s clamour over the years, for a convergence of the exchange rates of the nation’s currency. This will help in reducing the cost of procurement of commodities in the local markets, and consequently lead to profitable exportation of commodities.  It is only after the CBN has done this, that it can have the moral justification to enforce the new policy.

Our recommendation for the longer term remains for a consultation-based design of a pragmatic export strategy for Nigeria that would enable the country begin to fight for a fair share of global markets, beginning with AfCFTA.v