Weak non-oil export sector dampens possible naira devaluation gains

A weak non-oil export sector may foreclose the possibility of Nigeria gaining from the Central Bank’s decision to devalue the naira to N168/US$, from N155/US$ reported before Tuesday.

Nigeria’s Central Bank announced the devaluation Tuesday, to save the naira, dwindling foreign reserves and the economy, while widening the band around the midpoint by 200 basis points from +/-3 percent to +/-5 percent.

Analysts assume that one real impact of devaluation is increased export, which is now expected to be cheaper in international markets. Ideally, also, a regime of devaluation expects imported products to be more expensive for consumers and consequently decline.

However, analysts see a big

Manufacturers to save freight cost as new product testing infrastructure underway

Many Nigerian manufacturers involved in export business are set to save freight costs on failed transactions, on the back of upcoming infrastructure which will enable them test the standards and quality of their products in the country before export.

Up till now many local manufacturers first export their products to destination markets where they are tested and verified suitable or otherwise. Where they are certified as not meeting the customers standards, the manufacturer incurs losses on freight cost and sometimes also product cost.

With the coming infrastructure for testing product quality however, local manufacturers will be able to ascertain the quality of their products before freighting, thereby making savings on freight and products which they can divert to other markets, where possible.

The move is expected to further push up non-oil exports, which totaled

Growth in Nigeria non-oil export hits US$2.970bn — NEPC

The Nigerian Export Promotion Council, NEPC, has disclosed that, Nigeria realised $2.970 billion from non-oil export, in 2013 a 15.9 per cent increase over $2.561 in 2012.

Disclosing this at the business meeting tagged” A New Dawn For Nigerian Export” organised by the Nigerian-British Chamber of Commerce, NBCC, the Executive Director/CEO, NEPC, Mr. Olusegun Awolowo, said Nigeria’s export is dominated by oil, but that, there has been steady growth in Non-oil export to $2.970 billion in 2013, a 15.9 per cent increase over $2.561 in 2012.

He said that non-oil export potentials have not been fully exploited despite endowed natural resources solid minerals, agriculture, adding that, some of the challenges are poor infrastructure, energy, finance, skills and capacity.

According to him, the non-oil export challenges in Nigeria are