Tag Archives: Slide

Earnings From Non-oil Exports Slide To $1.6 Billion

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Following the inability of Federal Government to revive incentives for non-oil exporters, proceeds from the sector has continued to witness a southward trend, as the nation’s earnings hit $1.6 billion from $3 billion recorded in 2013.

According to stakeholders in the sector, earnings from non-oil export can easily cross $5 billion this year and bring some relief to tackle the foreign exchange crisis prevailing in the economy, if suspended incentives are revived and other challenges addressed.

Executive Secretary of the Organised Private Sector Exporters Association (OPEXA), Jaiyeola Olarewaju in a chat with The Guardian, noted that exporters have in the last two years, been sitting on a backlog of over N100 billion worth of unutilized export certificates issued under the seal of the Ministry of Finance, urging government to honour its financial commitments in regards to extant law

“It is paradoxical that one sector that had the potential to cushion the commodity shock has been paralysed due to lack of inter-ministerial coordination. Nigeria’s non-oil exports fell from $3billion in 2013 to $1.6 billion in 2015. In 2014, the country had realised $2.7 billion in non-oil exports. In 2015, exports of cocoa, Nigeria’s largest commodity declined by 35 per cent whereas leather exports, which is the main stay of industrial economy in the North plunged by 60 per cent.

“If the EEG policy had been sustained, our non-oil exports today would have easily crossed $5 billion by 2016 and brought some relief to tackle the foreign exchange crisis prevailing in the economy. The officials have been evading the issue by alluding to perceived abuses of the grant which led to its suspension. It is classic case of throwing the baby with the bath water. The exporters relied on the extant policy and repatriated forex through the banks duly verified by the CBN”.

He explained that while diversification is being advocated as the need of the hour to generate employment by boosting production in the non-oil sector, government should clear the backlog of unutilised NDCCs and exports made in 2014 and 2015 under the extant policy to sustain about 11 million Nigerians employed directly and indirectly in the non-oil export sector.

Credit: Guardian

Nigeria May Slide Into Recession, Experts Warn

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Experts yesterday warned that if urgent and strategic steps are not taken to revive the current economic slowdown, Nigeria may slide into recession.

Speakers painted a gloomy picture of the economy at the 21st Nigerian Economic Summit, NES, warning that if the country is allowed to slide into recession, it might be very difficult to come out of the situation as a developing nation.

In his country scenario presentation at the summit with the theme: ‘Tough Choices: Achieving Competitive, Inclusive Growth and Sustainability’, Partner/Head, Advisory Services, KPMG, Kunle Elebute, stated that if not careful, Nigeria might slide into recession, a position he said is difficult to come out of, especially for developing countries.

He stressed the need for government to, as a matter of urgency, begin to make inputs that drive revenue such as providing credit guarantee on long term to investors on infrastructure, increase power generation as well as education and investing in research.

He also emphasised on the need to reform the Federal Inland Revenue Service, FIRS, and other revenue collecting agencies, improve collection administration and expand the tax base, total reform of petroleum subsidy scheme, reduction of Joint Venture, JV, funding by 50 per cent and seek alternative financing.

Read More: nationalmirroronline