Nigerian exporters want reduction in the number of rejections at the borders of destination countries in the light of the upcoming African Continental Free Trade Area (AfCFTA).
They stress the need for a synergy between regulations and trade to drive exports.
At a 2019 symposium of the Export Group of the Lagos Chamber of Commerce and Industry (LCCI), exporters said rejection of most Nigerian goods arises from the inability of the products to meet country-specific standards. They stressed the need to tailor necessary export documents and certifications to requirements demanded by those countries.
“Most rejects are caused by delays, wrong documentations, multiple approvals by different agencies with perceived overlapping responsibilities,” Ademola Agboola, chairman, Export Group, LCCI, said last Thursday.
The Nigerian export sector is facing a plethora of challenges evident in a slump by 0.2 percent year-on-year to N1.452 trillion in March 2019, amid declines in sales of raw material by 20.5 percent, solid minerals by -43.1 percent and energy goods by -4.8 percent.
“The institutional framework is still weak,” Olumuyiwa Aiyegbusi, CEO of Olu Olu foods, said.
He said this is why some of the nation’s goods at the global markets are rejected.
“Only strong institutions would make our goods competitive at the international stage and until we address this, our goods will continue to face high level of rejections in Europe and other parts of the world,” he said.
According to data by the National Bureau of Statistics (NBS), crude oil contribution to total export was 82 per cent in Q1 2019 against 13 percent of non-oil export in Q1 2019.
“We need to close gaps in the export process and procedures in order to be more efficient and save cost,” Agboola stated, while speaking on getting Nigeria ready for the African Continental Free Trade Area (AfCFTA).
Africa has a market of 1.32 billion people, with an expected 42 percent growth in youth population by 2030. While this positions the continent as a good market to expand into, only a well-positioned economy in Africa will attract investors and free movement of goods.
“The Nigerian manufacturing industry has to wake up to the reality of the Africa trade agreement,” Kolawole Awe, chairman, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Export Group, said.
“If we do not do that, most of our SMEs we see today, we won’t see them again.”
According to him, about 80 percent of the 1.32 billion people in Africa are looking at the 200 million population in Nigeria, while the 200 billion have to develop their products to meet demands.
“For the SMEs to survive now, there is a wake-up call for all associations now and enough of ‘I can do it all by myself,” Awe concluded.
“We need increased working relationship between exporters, local traders, and the regulatory agencies,” Aiyegbusi concluded.
DAVID IBIDAPO
