The Managing Director of Nigerian Ports Authority (NPA), Ms Hadiza Usman, has disclosed that the Federal Government exported 78 per cent of crude oil cargo, while the remaining 22 per cent was non-oil export being the 191 million metric tons of export cargo which passed through the ports in 2019.
Following the plummeting price of crude oil globally, she predicted that the revenue, which the Federal Government hopes to earn from the seaports, is expected to drop by 75 per cent by the end of 2020.
Speaking during an interactive session on Webinar tagged, ‘Non-Oil Exports: Disrupting Nigeria’s Growth Cycle’, which was organised by BudgIT, she said there is need for diversification of Nigeria‘s economy through non-oil export. Nigeria’s independent oil producers are being crushed by the international oil price crash, with current prices more than two times lower than the costs of local independents’ production. The NPA boss recently explained that 78 per cent of Nigeria’s export was crude oil cargo, saying that crude oil cargo contribute the highest revenue of the nation’s seaport.
Usman said: “Nigerian crude shipment is tied to exportation and it contributes the highest revenue of the ports. This underscores the importance of diversification of the economy through non-oil exports in order to reverse the trend.” While emphasizing need for inter-agency collaboration, Usman highlighted the need to encourage local investors and make domestic investment a priority, adding that the agency was in discussion with the Lagos and Ogun State Government on how to establish modern trailer parks.
Meanwhile, Executive Secretary/CEO of the Nigeria Investment Promotion Council (NIPC), Yewande Sadiku, also predicted that Foreign Direct Investment (FDI) into countries in Africa is expected to fall by 30-40 per cent in 2020-2021. She emphasised the urgent need to not only attract more FDI but to also increase production capacity in-country in order to grow the non-oil export.
Sadiku, who listed countries such as United States, China, Singapore, Netherland and United Kingdom as top recipient of FDI globally, said that Africa, which contributes 17 percent of global population, is only able to attract 3 percent of global FDI.
“Whether oil or non-oil export, investors are looking for one thing, which is a conducive environment, financial return as well as sustainable and available asset,” she stated.