There are indications that the European Union,(EU) is likely to extend its deadline for lifting the ban on Nigerian exports to its member countries beyond 31st June 2016, which is the deadline it gave for the Nigerian government to ensure that it meets the specified global standards on its non-oil exports, Businessday findings reveal.
Analysts told BusinessDay at the weekend that this is a big blow to government’s quest to diversify the country’s export revenue base and raise foreign exchange earnings from non-oil means.
Oil and gas exports account for almost 90 percent of Nigeria’s export earnings and over 80 percent of federal government revenue.
But at 821.9 billion, Nigeria ‘s crude oil earnings slumped by 716.7 billion or 46.6 percent in first quarter of 2016, intensifying pressure on government to look to the country’s struggling non-oil sector.
The European Union has last year banned some food exports from Nigeria for not meeting with standards. The food items banned till 2016 include: beans, sesame seeds, melon seeds, dried fish and meat, peanut chips and palm oil.
Although Nigerian authorities had at several forums expressed readiness to get the EU certification on non-oil exports towards the end of this month, the European Union representative in Nigeria Fillipo Amato informed Businessday that the ban will apply until Nigerian authorities provide substantial guarantees on an adequate official export control system.
The EU representative said, “In principle, the ban will apply until the Nigerian authorities provide substantial guarantees that an adequate official export control system has been put in place and has been effectively implemented to ensure that products in question (dried beans) comply with the relevant EU food law requirements.
An export control programmes normally include the following elements: control of farmers and certification to Good Agricultural Practice- farmers trained in safe use of pesticides, keeping records of pesticide applications etc; traceability of exported consignments to certified farmers, and sampling and analysis in accredited laboratories”
Notwithstanding several interactions of the EU Delegation with the Nigerian authorities since the adoption of the ban in June 2015 (in particular with the Federal Ministry of Agriculture and Rural Development, the Nigeria Agricultural Quarantine Service, NAFDAC, the Federal Ministry of Industry, Trade and Investment, and the Nigerian Export Promotion Council), the EU considers that more time is needed by Nigeria to implement effectively an export action plan in order to achieve the expected results and before export of dry beans to the EU could resume” the EU representative explained.
Meanwhile, Businessday findings reveal that the inter-agency committee constituted last year by the federal government to study the major constraints of non-oil exports has just submitted its report to the Secretariat which is the Nigeria Export Promotion Council,(NEPC).
The report is expected to be understudied by the Secretariat before further discussions are held between the Nigerian authorities and the European Union on the non-oil export.
“The European Union would likely shift the ban because they have to understudy our report and do other due diligence before giving their stance, as such we may wait a little longer,” an insider source from the inter-agency committee told Businessday.
Beans which is an export reject has been analysed by European food safety Authority to have a maximum residue limit of 0.01mg/kg but the ones from Nigeria contain between 0.03mg and 4.6mg/kg of dichlorvos pesticides.
Nigeria’s top five non-oil export products as at the fourth quarter of 2015 were; Cocoa products, Sesame seeds, Cigarettes containing tobacco, unwrought Aluminium alloys, and Technically specified natural rubber, in primary form or in plates, according to data from the National Bureau of Statistics (NBS).
The top five destinations for Nigerian exports were; India, Spain, the Netherlands, France, and Brazil.
The 2nd, 3rd, and 4th top destinations (Spain, the Netherlands, France) are members of EU where some Nigerian agro-produce were banned.
Invariably, Nigeria’s ability to continue its exports to these locations will depend significantly on how the country is able to fulfill the conditions for EU imports to resume.
Beans, which is produced in large quantities is conspicuously missing from the top non-oil exports in Q4 2015 despite its enormous potentials for non-oil revenue.
More than 5.4 million tons of dried cowpeas (beans) are produced worldwide, with Africa producing nearly 5.2 million. Nigeria, the largest producer and consumer, accounts for 61 percent of production in Africa and 58 percent worldwide. More than 11 million hectares (of beans) are harvested worldwide, 97 percent of which is in Africa. Nigeria harvests 4.5 million hectares annually, notes the International Institute for Tropical Agriculture(IITA).
Harrison Edeh
