Nigeria: Beyond Oil – A Call for Economic Diversification

Nigeria is at a crucial juncture, and its economy relies heavily on the volatile oil market. The need for diversification is urgent, and the First City Monument Bank (FCMB) Non-Oil Export Seminar, held on 22 August 2024, highlighted this imperative.

The seminar, themed “Refocusing Nigeria’s Economic Development through Non-Oil Export,” emphasized the immense potential within Nigeria’s non-oil sectors, such as agriculture, solid minerals, manufacturing, and services.

The keynote speaker, Nonye Ayeni, MD/CEO of the Nigeria Export Promotion Council (NEPC), underscored the urgency of diversifying Nigeria’s revenue base. She stressed leveraging the country’s vast agricultural resources, solid minerals, and creative industries to reduce dependence on oil exports, thus building a more resilient economy capable of withstanding global economic shocks.

FCMB’s Managing Director, Yemisi Edun, echoed this sentiment, stating that collaboration to create a stable operating environment, develop export infrastructure, promote trade diplomacy, and secure sustainable funding is critical to the success of Nigeria’s export sector. FCMB’s outstanding facilitation of over $900 million in export flows and $140 million in remittances as of June 2024 further highlights the bank’s commitment to this cause.

The seminar also showcased the proactive roles of various stakeholders. The Nigeria Customs Service (NCS) shared its initiatives to enhance export trade, including creating the Lilypond Export Command, process automation, and capacity building. The Nigeria Export-Import Bank (NEXIM) emphasized its efforts to bridge the non-oil export financing gap and promote trade connectivity through the Regional Sealink Project.

Adewale Adeniyi, Comptroller General of the Nigeria Customs Service, noted that the NCS has implemented several initiatives to enhance export trade. Represented by Assistant Comptroller Olusola Salako, Adeniyi mentioned the creation of the Lilypond Export Command as a one-stop shop for facilitating export cargo, capacity building, system automation, process improvements, and partnerships with international trade stakeholders.

“These initiatives, including the digitization of customs clearance processes, align the NCS with global best practices in customs administration,” he said, adding that non-oil exports are duty- and tax-free in Nigeria, with no associated charges for customs export procedures.

Speaking on “Bridging the Non-Oil Export Financing Gap,” NEXIM Managing Director Abubakar Bello highlighted the Bank’s efforts to promote the Regional Sealink Project. This initiative aims to enhance trade connectivity by improving maritime logistics using inland waterways for coastal and hinterland trade.
“We welcome collaborations with business promoters and financiers to identify and fund viable non-oil projects, particularly in manufacturing, agro-processing, solid minerals, and services,” Bello said. “Nigeria has vast potential to grow non-oil exports and diversify its export revenues.”

The seminar reinforced the belief that Nigeria’s economic future lies in diversification. Nigeria can unlock its full potential by investing in human capital, improving access to finance for small businesses, and creating a supportive regulatory environment. FCMB stands ready to partner with companies on this journey, offering financial tools, advice, and market insights to help them compete globally.

The path towards a diversified and resilient Nigerian economy is evident. It is time to act, tap into the nation’s vast resources, foster innovation, and secure a prosperous future for all citizens.