The decline of exports from Nigeria has had far-reaching implications for the country especially non-oil exports, as it has limited efforts to diversify the economy. Over-reliance on oil has made the country vulnerable to fluctuations in global oil prices, leaving it susceptible to economic shocks.
The dwindling non-oil exports have also contributed to a growing trade imbalance, as Nigeria continues to import more than it exports. This imbalance has led to a strain on the country’s foreign exchange reserves.
Agricultural produce and agro-processed products form a large part of the country’s non-oil exports at 30.12 per cent. Over the years, Nigeria’s agricultural exports have been on a troubling downward trajectory, despite its immense potential in the agriculture sector. One of the major hurdles for the country’s agricultural exports is inadequate quality control measures.
Earlier in the year, the National Agency for Food and Drugs Administration and Control (NAFDAC) revealed that more than 70 per cent of Nigeria’s food exports are rejected abroad. The agency expressed concern about the dismal condition of export trade facilitation for regulated products leaving the country.
Recently the Director General of NAFDAC, Prof Mojisola Adeyeye, identified non-compliance with advisory guidelines set by the agency and exporters’ unwillingness to adhere to basic sanitary measures as contributing factors to the rejection of Nigerian food products in the United Kingdom. However, Adeyeye said NAFDAC held a meeting with the UK Food Standard Agency to shift the prevailing narrative and curb the rejection of Nigerian food products within the global market. “Almost all exported food products are processed without statutory testing by NAFDAC. Therefore, it is not surprising that all the items exported without NAFDAC quality control and safety tests are rejected,” she said.
Nigeria’s non-oil exports are primarily concentrated in Europe from a geographic standpoint. Nations in the European Union consume more than 70% of Nigeria’s non-oil exports. The main export markets for the nation are West Germany, the Netherlands, and the UK. The United States’ percentage has remained steady at around 10%. Exports to Japan have not risen above 3%. Only 3.0% of Nigeria’s non-oil exports are sent to other African nations, despite efforts to increase intra-African trade through the establishment of the 16-member Economic Community of West African States (ECOWAS) and other treaties.
“Poor packaging, disregard for importation requirements of trading partners countries penchant for sourcing from open markets for exports without any form of minimal safety or quality specifications; unwillingness to invest in pre-export activities that help to ensure sustainable export; and disinformation on the roles of NAFDAC in the pre-shipment inspection and verification exercise of container stuffing,” noted Adeyeye.
It is baffling why some individuals or businesses exporting food from Nigeria choose not to comply with minimal sanitary measures and statutory testing by NAFDAC. This lack of compliance ultimately results in significant financial losses for those involved. Noncompliance is a counterproductive strategy for exporters of food from Nigeria.
The rejection of Nigerian exports abroad poses a major economic setback for the country. Exports are a crucial source of revenue and foreign exchange, contributing to the country’s GDP and providing jobs for its citizens. When a large percentage of these exports is rejected, it results in a direct loss of income, leading to a decline in economic stability and development.
The high rate of rejected exports has a detrimental effect on Nigeria’s international reputation. It erodes the trust of trading partners and foreign markets, making the establishment of long-term and mutually beneficial trade relationships challenging. This, in turn, can hinder foreign investments and partnerships that are vital for the nation’s economic growth.
