Martins Uba Nwamadi
The recent postulation by National Bureau of Statistics (NBS), which revealed that the second-quarter GDP growth in real terms declined by 6.10 per cent year-on-year basis is no more news. But the main thrust of the negative growth has exposed the fragile nature of our economy, which is a mono-economy. In real terms, the global pandemic, COVID-19, has brought to fore the volatility, uncertainty and unpredictability of oil as the main pillar of our economy. International oil politics has brought most oil-producing nations to their knees. The takeaway is, therefore, the need to take seriously every effort to diversify the economy.
Nigeria is a land of dynamic economic change. The economy is the biggest and largest in Africa. Also, Nigeria has dynamic entrepreneurs who have made giant strides in several spheres of the economy be it in manufacturing, trading, mining, energy, logistics engineering, services and tourism. Infact there is no sector where you will not see pragmatic Nigerians excelling and making a statement.
Recently, the chief executives of Nigerian Shippers Council (NSC), Hassan Bello, and Nigerian Export Promotion Council (NEPC), Segun Awolowo, respectively, met to fathom out areas of collaboration that will stimulate export market for our agricultural, mining, mineral and aquatic resources.
The meeting is a recipe to better opportunities that are about to evolve. The twin agencies are saddled with regulatory functions, established to engage with the public its guidance principles, monitoring appropriate compliance to rules and regulations while assuring commitment to quality control and standards.
NSC was established in 1997 by Decree 13 now the Nigerian Shippers’ Council Act, Cap N 133, LFN, 2004, as a trade facilitator. Its mission is to ensure seamless, efficient and cost-effective shipment of goods in consonance with acceptable international standards.
On the other hand, the NEPC, also a Federal Government agency, was established by Decree 26 of 1976 with subsequent amendment in 1986 and 1992 to perform key functions of promoting the development and diversification of Nigeria’s export trade; Assist in promoting the development of export oriented industries and playing a leading role in the creation of export incentives.
Its mission is to “…Position the export market as the growth opportunity of choice for private sector earnings and for sustainable economic development.”
From the intendment of the two public agencies their meeting is not only welcome but the key to the advancement and realization of the diversification of our economy.
According to Bello, the meeting was designed to help streamline capacity and productivity and to uncover big opportunities that create long-term value for our economy. The meeting is important for Nigeria to drive its export volume and to ensure that the future of nations economy is unbundled. Out of 10 containers that come into Nigeria laden, only two or three are taken out with exports. We can do more to drive our export market.
Corroborating the assertions of the NSC boss, the executive secretary of NEPC, Awolowo, stated that his agency has identified about 22 export commodities that could help the country reverse from this mono economy.
According to statistics from NEPC/Commodity data, Nigeria in 2017 earned about $46.68 billion in exportable products as follows: Crude petroleum $36.96 billion, petroleum gas $7.39 billion, refined petroleum $603 million, beans $504 million, rough wood $333 million, copper $ 133 million, tanned goat hides $106 million, cocoa butter $76.1 million, rolled tobacco $65.1 million, and rubber $ 57.1 million. From the above statistics, it is apparent that our huge mineral and agricultural products are not doing well at the global market.
Confrontation of ideas is key and welcome as we strive to match competition. In this era of global competitiveness, we welcome the synergy between the two agencies of government who want to do things differently. The prevailing uncertainty in the economy, especially why our products are not matching competition in the global village, should be a concern to all.
Innovative export trade scheme aimed at unlocking socio – economy potentials in our expanding economy should be a welcome development and must be given every necessary assistance.
The conditions for a real possibility to achieve this export trade campaign is basically to educate potential and prospective exporters with ideas and techniques that will not only market our products but also sell such products at the global shelf. Perception is often everything in business. Our products must meet international standards. The products must offer the customer more class and appeal to their status.
No matter how complex our individual or corporate needs are, there is every need for incisive advice that will provide buffer stocks which exporters/importers encounter in their trade.
This is very crucial given the mortality rate at which indigenous businesses die due to lack of expertise, guidance, lack of adequate knowledge of international rules, laws and regulations.
The two public institutions of NSC and NEPC who are orchestrating this vast international effort to get our economy diversified must be encouraged.
The words of Bello are apt and encouraging. He said, “the meeting is to ensure that everyone in the value chain makes a personal commitment so as to exceed the national expectation.” The travails Nigeria encountered during this global pandemic is a critical lesson to any organization or nation. It calls for partnership. We must share ideas, opinions with the private sector, sectoral groups, MAN, NACCIMA, engage stakeholders and strategically move to start up on how to explore Nigeria’s undiscovered economic potentials that adorn in all nooks and crannies of the country, Bello added.
In conclusion, we commend the synergy between NSC and NEPC on this initiative to build a knowledge-based driven template that will increase our export revenue, lift up our economy, create jobs, improve the manufacturing sector while stimulating the economy of those in the hinterland who are impoverished because their agricultural stocks have no market. We therefore urge Hassan Bello and Segun Awolowo to ensure that this vision is backed by implementation and surely history will place them in the hall of fame.