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Tag: Export

  • Nigeria’s exports hit N2.7bn in 6 months – NEPC

    Nigeria’s exports hit N2.7bn in 6 months – NEPC

    The Nigerian Export Promotion Council (NEPC), says  exporters raked in ₦2.7 billion from January to June. The Executive Director of NEPC,  Nonye Ayeni, said this at a one-day sensitisation seminar for exporters on export contracts and use of International Commercial Terms ( INCOTERMS) organised by the council in Owerri, on Thursday.

    Ayeni, represented by the Coordinator of NEPC in Imo, Mr Anthony Ajuruchi, said that the profit was an indication of the hard-work and commitment of non-oil exporters in the country.

    She said that the workshop was necessary to equip exporters with requisite knowledge of INCOTERMS as they hold the key to unlocking successful global trade transactions and improving product competitiveness.

    “Understanding INCOTERMS plays a vital role in international trade, providing a standardised framework for buyers and sellers to communicate and mange their responsibilities and liabilities.

    ”By understanding the 11 INCOTERMS rules, businesses can clarify their obligations and risks with a view to minimising misunderstandings and disputes,” she said.

    Ajuruchi said that in line with NEPC’s motto of doubling exports for economic growth and job creation, export negotiation should be done in a way that satisfies all parties in a business and convinces the buyer of the comparative advantage of a seller’s product.

    He advised exporters to plan well ahead of a business negotiation, define their ground rules, make a good impression, have a good bargaining power, discover the actual needs of a client and build trust.

    “When negotiation is good, concerned parties go home happy, but when it is bad, the reverse is the case. All of these lie in the hands of the exporter, ” he said.

    Also soeaking, the Chairman, Imo Exporters Summit, Eze George Ekeh, said exports were more crucial to the country’s economic recovery than ever before.

    Ekeh, also the traditional ruler of Ishi Ubommiri Autonomous Community, Mbaitoli council area of Imo, advised exporters to package their products properly and attract the right buyers for better pricing.

    One of the exporters, Mr Uche Chikata, the Managing Director of St. Ann’s cashew nut industry, thanked NEPC for the workshop, adding that it would enable exporters in the state increase their income target in the final quarter of  2024.

  • Why price of cooking gas crashed – FG

    Why price of cooking gas crashed – FG

    The recent crash in the price of  Liquefied Petroleum Gas, (LNG) popularly called cooking gas has been linked to the Federal Government’s ban on its export.

    Report of the crash in price of LNG from about N1,500 per kilogram to around N900/kg surfaced recently.

    Cooking gas dealers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers disclosed this during a courtesy visit on the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.

    There were reports  that the Federal Government banned the exportation of LPG in a bid to increase its volume domestically to warrant a crash in price.

    It report stated at the time that LPG producers in Nigeria and key stakeholders in the industry had been told to stop exporting the commodity out of Nigeria, following the jump in the cost of cooking gas.

    Addressing pressmen on Wednesday in Abuja, the National President, NALPGAM, Oladapo Olatunbosun, commended Ekpo for the courage in ordering the domestication of all LPG produced within the country, stressing that the policy resulted in the reduction and stabilisation of the product’s price in the domestic market.

    Olatunbosun, in a statement issued by the minister’s media aide, Louis Ibah, recalled that during a stakeholders consultative forum in Abuja in February this year,  the association had drawn the minister’s attention to the fact that some international oil companies  operating in Nigeria had been exporting huge volumes of gas.

    He had pointed out that if these volumes were to be available for the domestic market, there would be no need to import LPG at exorbitant rates as the product would be available and there would be price stability in the local market.

  • UBA, Saudi EXIM Bank partner to enhance business relations

    UBA, Saudi EXIM Bank partner to enhance business relations

    Africa’s Global Bank, United Bank for Africa (UBA) Plc, and Saudi Export-Import Bank (Saudi EXIM), a premier export credit agency in the Kingdom of Saudi Arabia, have announced a partnership aimed at strengthening business growth and enhancing economic cooperation between their economies.

    To this end, both institutions signed a Memorandum of Understanding (MoU) on November 9, 2023, to foster economic cooperation and trade relations between the two entities.

    The MoU was signed on the side-lines of the Saudi and Arab African Summits in Saudi Arabia.

    The partnership between UBA Group and Saudi EXIM Bank outlines the guiding principles for developing cooperation and relations between the two banks, with primary focus on promoting trade through the export of goods and services between the Kingdom of Saudi Arabia and the African markets.

    Apart from collaborating in these areas, both institutions will also ensure sustained participation in the development of the African economy through intercontinental business relationships that will be facilitated by the new partnership.

    The MoU will also work towards supporting joint projects and collaboration involving the export of goods and services from Saudi Arabia, and exploring opportunities to co-finance, co-insure, co-guarantee, and reinsurance projects jointly undertaken by companies from both regions.

    It will also facilitate the exchange of information and know-how in the field of export credit policies and practices, the sharing of experiences and best practices through meetings, conferences, seminars, and workshops, as well as providing training for each other’s staff members and staff exchanges when beneficial to both parties.

    The framework for cooperation on specific joint projects will be established under separate agreements, with each party determining the terms and conditions of its support in line with its policies, procedures, and national legislation.

    Also, the exchange of information will be facilitated by both institutions, while technical know-how in the field of export credit policies and practices will also be shared.

    UBA’s Chief Executive Officer, Oliver Alawuba, who expressed his enthusiasm about this collaboration, explained that through the partnership, both companies will Identify and support joint projects and collaboration in the area of exportation of goods and services.

    He said, “We are happy to join hands with Saudi EXIM Bank in a partnership that holds great promise for businesses and economies in both regions. This agreement will not only facilitate the export of goods and services but also solidify our commitment to intercontinental business relationships and contribute to the development of the African economy.”

    “This relationship is particularly promising, considering that Saudi Arabia is deliberate in deepening economic cooperation with Africa and UBA with presence in 20 African countries, providing the necessary vehicle for deepening this engagement. The partnership also expands our access to Asia and the Middle East, where the Bank recently opened a subsidiary in Dubai,” Alawuba said.

    His Excellency Eng. Saad Al-Khalb, CEO of Saudi EXIM, said, “By uniting our strengths, we are setting in motion a dynamic platform that will propel the export of innovative Saudi goods and services, catalyze industrial growth, and magnify our global footprint across the rich tapestry of African economies. This, we believe, will not only augment Saudi Arabia’s export diversification but also contribute significantly to the socio-economic fabric of the African nations we will serve together.”

    UBA is a leading Pan-African financial institution, offering banking services to more than thirty-seven million customers across 1,000 business offices and customer touch points in 20 African countries.

    With presence in New York, London and Paris and now the UAE, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

    Saudi EXIM was established in 2020 with the aim of promoting Saudi non-oil exports and enhancing its competitiveness across various sectors in global markets. This is done by providing financing services, guarantees and credit insurance with competitive advantages to enhance confidence in Saudi products and increase the contribution of non-oil industries to 50% by 2030 from the current percentage of 16%, which is a major goal of the Kingdom’s Vision 2030. The Export-Import Bank is one of the development funds that are supervised by Saudi National Development Fund

  • NAFDAC releases top 10 rejected Nigerian food abroad

    NAFDAC releases top 10 rejected Nigerian food abroad

    The National Agency for Food and Drug Administration and Control (NAFDAC) has released a list of 10 rejected  Nigerian food items abroad, blaming the rejection on non-adherence to standardized clearance procedures by stakeholders.

    The Deputy Director, Export Division, Ports Inspection Directorate, NAFDAC, Sanwo-Olu O.A. stated this in an address she delivered at the 3rd CHINET Aviacargo conference in Lagos, with the title, “Unlocking the Logistics Barrier to Improving Agro Exports Products.”

    According to her, the top commonly rejected export food commodities from Nigeria are, sesame, beans, melon seeds, peanut and smoked fish/fish meal, ginger, spices paper, hibiscus flower, palm oil and ogbono.

    She blamed the rejection on non-adherence to set standard by freight forwarders, cargo handlers, airlines/carriers, regulatory agencies, as well as poor inter-agency collaboration, amongst others.

    Sanwo-Olu called for collaboration among stakeholders to ensure that export trade meets the requirements of the country’s trading partner, in terms of quality, standards and quantity as trade increases.

  • TNG Deal Breakers: Export losses denting Nigeria’s image, curtailing entrepreneurship and solutions

    TNG Deal Breakers: Export losses denting Nigeria’s image, curtailing entrepreneurship and solutions

    Commodities, agricultural and food products are Nigeria’s forte or should be the real mainstay of the country’s economy given the vast cultivable lands and the markets for exportable packaged products. The rejection of Nigerian exports by oversea buyers has for long been one of the sorest points in the quest to earn more revenue from non-oil products.

    What more can afflict the confidence of a producer than that his products are rejected by the same buyers who ordered them? So many questions to ask, but the major problem lies in quality assurance, pre-shipment testing and certification and export packaging. To be queried also is the quality of personnel and instruments, pre-shipment conditions and certification. For packaged products, are samples not sent to the ordering party prior to exports to ensure adherence to specification?

    The Nigerian Export Promotion Council and Nigerian Export-Import Bank have a duty to address these serious lapses that have bedevilled the country’s businesses from flourishing in the export of finished goods. It should be blame game over for those agencies of government that have treated this matter with levity.

    Projected to earn about US$ 30 billion by 2025, the non-oil export has performed woefully due to the authorities’ negligence in dealing with buyer concerns overseas.  The Nigerian Export Promotion Council (NEPC) attributes this failure to inadequate training and exposure to export business in the international market and recommends export business training for those who wish to venture into it.

    Export credit insurance and loss mitigation

    Inasmuch as Nigeria is not planning to reinvent the wheel, export trade has a procedural template that works for other countries. Insurance is key both to import and export and meeting buyers’ demands is not rocket science. If an exporter, particularly of agricultural products has received a genuine order for products, it means the product as presented to the buyer is good enough. The problem of rejection by the buyer is a solution covered by an export credit insurance policy.

    Export credit insurance provides protection against delayed payments or non-payment by buyers while trade credit insurance protects the exporter from the risk of products not being paid for as well as providing guided information from industry experts which is key to successful trade.

    This facility provided locally by Nigeria Export-Import Bank (NEXIM) is put in place to encourage exporters to diversify their export markets without fear of the risks inherent in dealing with new buyers. It is also meant to win new enterprises into the export business. In a competitive international market, the insurance policy encourages exporters to ship products on credit.

    According to NEXIM Bank, “export of goods wholly or partly manufactured in Nigeria and export of commodities, which are exportable under the laws of Nigeria,” are eligible for this credit insurance provided such exports are backed by contracts of supply.

    Insurance cover types

    There are mainly Pre-shipment covers and Post-shipment covers. Under most conditions, the two are issued as one policy covering pre-shipment and post-shipment risks. For goods not accepted by the buyer, NEXIM absorbs 68% liability. So the worrisome rejection of goods from Nigeria is almost 70% solved with an export credit insurance contract.

    “If the cause of loss is non-acceptance of goods, the liability of NEXIM is limited to 68% of the loss or of the GIV, whichever is less”, the NEXIM policy assures.

    The Ministry of Foreign Affairs is present in over 100 countries and most of the country’s embassies is staffed with economic attaché. This usually offers countries opportunities to leverage export from their home country because being physically present enables them to report back to export groups the existing standards and quality of products demanded or sold in those countries.

    It may be official inefficiency that could be blamed for the inability of Nigeria’s exports when viewed against the background that many countries around the world not richly endowed with natural resources such as Nigeria have transformed their societies through export trade.

    Both Ministry of Foreign Affairs and NEPC table the same excuse of denial of market access all the time without really exposing the quality of the same products sold in the countries where buyers reject Nigeria’s products.

    Post shipment losses

    Since most complaints centre on post-shipment rejection at the export destination, the government agencies should then work with NEXIM to work out an appropriate quality pre-shipment inspection strategy to avoid dampening the entrepreneurial spirit of exporters. Thereafter, deal extensively with the commercial risks attendant on exportable goods, particularly, agricultural products.

    The commercial risks covered include;

    ∙         Payment default due to buyer insolvency

    ∙         Buyer’s refusal to accept the goods dispatched which conform to contract specifications. Indeed this aspect has been a source of concern to many Nigerians – even when goods conform to standards from the buyer’s country, products are still rejected owing to the largely exaggerated corruption image of Nigeria – the labelling and profiling of anything Nigerian.

    However, in the event of non-acceptance of goods, the export has a waiting period of “one month after the date on which, the goods have been resold or otherwise disposed by the exporter”.

    NEXIM also covers political and economic risks which sets off a “general moratorium on payment decreed by the government of the buyer’s country” and “any other measures or decisions of the government of a foreign country, which prevent performance of the contract.”

    Up to 85% of losses of the Gross Invoice Value (GIV) are covered in both commercial and political events at export destinations that lie outside the buyer’s or seller’s control and occur outside Nigeria. Where a trade dispute ensues due to the liability of fulfilling the contract terms, the dispute shall be settled between the exporter and the buyer before NEXIM will consider a claim.

    Collaborations

    Undoubtedly, there is no lack of entrepreneurs ready to explore the export business but the government needs to show seriousness in addressing the major hurdles of competitiveness in all parameters – pricing, quality, delivery and appropriate business intelligence across countries where Nigeria has a presence.

    Certainly, it is good news that the National Agency for Food and Drug Administration and Control (NAFDAC), is worried by the rejection of Nigerian exports and the attendant financial loss by exporters. Prof. Mojisola Adeyeye, the DG should also be informed that collaboration with NEXIM and other export credit insurers is key to solving this problem to encourage exporters.

    At a recent event, the NAFDAC DG promised that “the rejection (of Nigerian exports) in some European countries and the United States of America may soon become a thing of the past if collaboration between the agency and other government agencies at ports is strengthened”.

    Aside from the “deplorable state of export trade facilitation for regulated products leaving the country” and strengthening regulation of export-packaging, pre-shipment testing and certification, insurance must play a key role to reduce export product losses by businesses. Experts in export credit insurance ensure that all the precautions are taken before they issue policies for export risks.

    Therefore, while sensing the call to duty and the necessary initiating of collaborative activities with government agencies at the ports, “to ensure goods are of requisite quality and meet the regulatory requirements of importing countries and destinations, do extend this to export trade insurance so you have the entire picture.

    It is pertinent that the full list of collaborators comprising NEPC, NAFDAC, NEXIM, Customs and other stakeholders come together to make our exports good economic ventures.

    Incentives

    Many deals are initiated and concluded at trade fairs and thus, participation at NEPC-organized training courses, symposia, and seminars is essential. The Export Development Fund (EDF) Scheme was set up by the Federal Government of Nigeria under the Export (Incentives and Miscellaneous Provisions) Act CAP E19 Laws of the Federation, 2004 to provide financial assistance to exporting companies to cover part of their initial expenses with respect to export promotion activities.

    These initial expenses include advertising and publicity campaigns in foreign markets. The entire bouquet of support granted by the EDF should ordinarily take care of the worries raised by all the agencies charged with facilitating export including the foreign affairs ministry.

    The Export Development Fund, if really funded should provide “support for MSMEs exporting companies to undertake conformity assessment in the areas of Packaging, labelling, Standardization, Accreditation, Testing, Metrology, (traceability and calibration) Quality Certification, including ISO Management Systems (QMS ISO 9001, EMS ISO 14001 FSMS ISO 2200, OHSAS 18001 etc.), Fair Trade, Halal, Kosher, FDA and other relevant certifications etc.

    To support MSME in the areas of pre-shipment quarantine issues such as standard and regulation, best agricultural practice, including post-harvest handling and Sanitary and Phytosanitary (SPS) issues.”

    Looking at the array of support that the EDF provides, there can only be two issues that cause the rejection of our exports – qualified personnel providing quality assurance guidance and funding channelled at real exports.

  • Ukraine to resume electricity exports to Europe after 6 month halt

    Ukraine to resume electricity exports to Europe after 6 month halt

    Ukraine will resume exporting electricity to Europe after a six-month pause due to crippling Russian missile attacks on the country’s infrastructure, Energy Minister German Galushchenko, said on Friday.

    “The Ukrainian power grid had been functioning for almost two months without any restrictions on consumption and with a power reserve,” Galushchenko said in a statement, saying repairs had been a success.

    He said that exporting the surplus electricity would provide additional financial resources for the reconstruction of the destroyed and damaged energy infrastructure.

    An export of a maximum of 400 megawatts to the European energy grid had been agreed. Ukraine was connected to the grid shortly before the war began.

    However, the actual amount of electricity exported will depend on the needs of Ukrainian consumers, said Galushchenko, adding that their own electricity consumers “unquestionably” remained their priority.

    In the face of the all-out Russian invasion more than 13 months ago, Ukraine continued to export electricity to neighbouring ex-Soviet republic, Moldova, and the European Union from June until October.

    This was when targeted Russian attacks on Ukraine’s energy supply began.

    In 2022, electricity generation in Ukraine fell by over 27 per cent due to the war.

    Europe’s largest nuclear power plant near Zaporizhzhya, which has been under Russian control since March, was shut down in September.

  • NNPC hits $224.29 million proceeds from export of crude oil, gas in August 2021

    NNPC hits $224.29 million proceeds from export of crude oil, gas in August 2021

    The Nigerian National Petroleum Company (NNPC) Limited recorded $224.29million receipt from crude oil and gas export in August 2021 as against $191.26million in July 2021.

    This was contained in a release issued and signed by Garba Deen Muhammad
    Group General Manager, Group Public Affairs of NNPC.

    Breakdown:

    A breakdown of the figures captured in the August 2021 NNPC Monthly Financial and Operations Report (MFOR) indicates that export of crude oil amounted to $7.77million while gas and miscellaneous receipts stood at $65.26 million and $151.26million respectively.

    Total crude oil and gas export receipt for the period of August 2020 to August 2021 stood at $1.84billion.

    In the Gas Sector, a total of 233.57billion cubic feet (bcf) of natural gas was produced in the month of August 2021 translating to an average daily production of 7,534.67million standard cubic feet per day (mmscfd).

    For the period of August 2020 to August 2021, a total of 2,890.67bcf of gas was produced representing an average daily production of 7,303.61mmscfd during the period.

    Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 57.51%, 20.88% and 21.62% respectively to the total national gas production.

    The report also indicates that out of the 208.64bcf of gas supplied in August 2021, a total of 131.35bcf was commercialized, consisting of 40.22bcf and 91.13bcf for the domestic and export markets respectively.
    This translates to an average total supply of 1,297.54mmscfd to the domestic market and 2,939.31mmscfd of gas to the export market for the month.

    Total gas supply for the period of August 2020 to August 2021 stood at 2,792.28bcf out of which 537.51bcf and 1,245.93bcf were commercialized for the domestic and export markets respectively.

    In the Downstream Sector, a total of 1.532billion litres of white products were sold and distributed by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, in the month of August 2021.

    A breakdown of the figure indicates that petrol accounted for 99% of total sales, while Automotive Gas Oil (AGO), also known as diesel, accounted for the rest.

    Total sale of white products for the period of August 2020 to August 2021 stood at 20.032billion with petrol accounting for 99.81%.

    In terms of value, a total sum of ₦203.43billion was made on the sale of white products by PPMC in the month of August 2021.

    Total revenues generated from the sales of white products for the period of August 2020 to August 2021 stood at ₦2.619trillion with petrol contributing about 99.76% of the total sales with a value of ₦2.613trillion.

    In August 2021, 21 pipeline points were vandalized representing 50% decrease from the 42 points recorded in July 2021.
    According to the report, Port Harcourt area accounted for 10%, while Mosimi Area accounted for 90% of the vandalized points.

    The August 2021 MFOR, the 73rd in the series, highlights NNPC’s activities for the period of August 2020 to August 2021.

    In line with the Company’s commitment to the principles of accountability, transparency and performance excellence, the NNPC Ltd. has continued to sustain effective communication with stakeholders through the publication of the MFOR on its website, in national dailies, and on independent online news platforms.

  • Reps want briefing from CBN on new import, export guidelines

    Reps want briefing from CBN on new import, export guidelines

    The House of Representatives has urged the Central Bank of Nigeria (CBN) to brief its Committee on Customs and Excise on the new guidelines on imports and exports businesses in the country.

    The resolution was sequel to a unanimous adoption of a motion by Rep. Leke Abejide (ADC-Kogi) at plenary on Thursday.

    Moving the motion, Abijide said that there was need for assuranc that the target revenue of N3.1trillion given to the Nigeria Customs Service (NCS) by the Federal Government would be met.

    “The NCS has announced to the media that its targeted N4.2 trillion will not be distorted by this sudden policy change,” he said.

    Abejide said that that on Jan. 21, the CBN issued a circular on guidelines on imports and exports which was to take effect from February.

    He said that sudden change in government policies often lead to policy summersaults.

    “For policy change such as this, a grace period of 90 days is usually expected for transactions to run its full course to avoid distortion in the economy,” he said.

    Abejide said the CBN has deviated from its primary function of monetary policy by concentrating on fiscal policy measures which was the function of the Ministry of Finance.

    “If the guidelines are not given adequate time to sensitise and acquaint the major ports of entry in the country for stakeholders and the general public to study the policy, it will distort prices of goods and services.

    “It will however, create logjams for imports and exports, delay transactions and consequently cause ports congestion.

    “Recall in 2020, the immediate implementation of FORM NXP as a mandatory statutory document required to be completed by all exporters for shipment of goods outside the country but it resulted in crisis.

    “Most exporters contracts were cancelled by their foreign buyers’ due to network issues and configuration of its portal which takes more than three weeks to resolve thus leading to massive financial loss by exporters,” he said.

    Abejide expressed worry that importers and exporters in the manufacturing, mining and trading sectors would be affected.

    “Am disturbed that some issues in the guidelines are contradictory for instance, guidelines (c) and (d) contradict each other.

    “The guideline (c) states that no importer/exporter may effect payment to the credit of any foreign supplier unless the electronic invoice has been authenticated by Authorised Dealer’s Banks presented together with the relevant documents for payment, but guideline (d) states that the content of the electronic invoice authenticated by Authorised Dealer Banks is only advisory for the Nigeria Customs Service (NCS),” he said.

    The house urged the CBN to suspend the policy with immediate effect to enable adequate sensitisation on the workability of the policy in all major ports of entry including Sea Ports, Airports, and Border stations.

    The lawmakers also said that the CBN should give 90 days’ timeline for subsequent new Fiscal/Monetary policy implementation to allow for adjustment in order to stabilise the economy.

  • Nigeria to start rice exportation soon – RIFAN

    Nigeria to start rice exportation soon – RIFAN

    The Rice Farmers Association of Nigeria (RIFAN) says the country will commence exportation of rice in the near future to engender the twin benefits of food security and economic diversification.

    Mr Ado Hassan, Secretary of the Kano State chapter of RIFAN, made this known on the sidelines of the unveiling of the mega rice pyramids in Abuja.

    The pyramids, unveiled by President Muhammadu Buhari, is a joint project between the Central Bank of Nigeria (CBN) under its Anchor Borrowers Programme, and RIFAN.

    Hassan dispelled insinuations that the rice pyramids on display were not solely rice, adding that the commodity was brought in by rice farmers in virtually all states of the country.

    “The rice here is from all over the country. RIFAN has always been real, it is not possible to deceive 200 million Nigerians with a project like this.

    “For the fact that Nigeria has not imported even a grain of rice in the last four years is enough prove that we are already self sufficient in the commodity. The cultivation of rice is a reality and it will continue to happen,” he said.

    Hassan said that Nigeria had become the highest rice growing country in Africa due to the support of the Federal Government and the intervention of the CBN.

    “There was a time when the CBN was spending N1billion to support rice import bills. Today the apex bank is no longer spending a kobo to support importation of rice.

    “Today, Nigeria has become the highest rice grower in the whole of Africa. That is a great achievement.

    “We have leaders of some of our neighbouring countries who are coming here today to see our miracle in rice. They are a sure market for our rice exportation,” he said.

    He added that, though insecurity was a set back, it has not discouraged farmers from cultivating different crops.

    He assured that the massive investment in rice cultivation by Nigeria will bring down its price and make it available to the ordinary Nigerians.

  • CBN set target to boost Nigeria’s export trade to $12bn

    The Central Bank of Nigeria (CBN) has set a target to boost Nigeria’s export trade to about $12 billion by the year 2024.

    This was disclosed by the Principal Manager, Trade and Exchange Department, CBN, Mr Richard Maikai, who noted that the apex bank will through a set of policies diversify the nation’s economy from the oil sector to the non-oil sector.

    Speaking at the GTR Trade Conference in Lagos on Tuesday, he noted that to boost investors’ confidence, the apex bank had ensured a level of stability in the exchange rate in the past 36 months.

    “Any investor would want to know that when they invest their funds, they could be able to recoup the funds back. Though our reserve is marginally increasing, the CBN is ready to defend the Naira, so investors can have access and no restrictions to withdrawals,” Mr Maikai said.

    He added that the country was also working at ensuring that whatever product it was pushing, they were tested and approved for quality, noting that about 30 containers of cassava were recently rejected in China.

    To remedy this, Mr Maikai revealed that the CBN was working with the Nigeria National Accreditation System (NiNAS), the regulatory body that oversees all the laboratories, to ensure that all laboratories have the ISO17025 certification without which they would not be accredited.

    He assured that once the CBN can upgrade and make sure that every testing laboratory was ISO17025 certified, the county’s export and trade sector won’t record loss again and would be on track to achieving its target of $12 billion by 2024.

    Making his remarks, the Head of Financial Institution Coverage and Trade Finance, Rand Merchant Bank (RMB) Nigeria, Mr Sheyi Soetan, said the manufacturing among other sectors should be the key driver of the nation’s economy.

    “Funds have to be invested in the real sector, and the fortunate thing is that the CBN has identified the real sector, and manufacturing as key investment areas.

    “They are trying to move away from oil and focus more on manufacturing and the real sector. You can see this from the amount of money that is being pumped into the manufacturing sector through various intervention funds and the new rules that say banks must lend to the real sector.

    Speaking on borrowing, he said borrowing is not a bad thing as other countries also borrow, but noted that all borrowing should go into infrastructure, which would, in turn, generate revenue for the government. “The mistake would be to borrow to fund recurrent expenses. That is the precipice for failure,” he added.