Central Bank of Nigeria, CBN, latest monthly Economic Report, has indicated that non-oil exports has dropped by 27 percent from the preceding month.
The Report showed that the non-oil exports provisionally at $364m in April, in spite of the Federal Government’s efforts to diversify the economy from oil dependence and ensure added sources of revenue to the national coffer.
The sharp decrease in the receipts was obvious in all components other than minerals. The largest proceeds came from manufactured products, which earned $204m.
The Nigerian Export Promotion Council recently disclosed that half of its registered exporters are inactive. The breakdown by sector in April shows that proceeds from manufactured, agricultural and mineral products accounted for 56.0%, 7.1% and 25.6% of total receipts respectively.
Export earnings from agriculture in April stood at $26m, less than 10% of total earnings. To boost receipts from this sector, the Federal Government recently developed a cashew segment strategy which is expected to earn the country $200m within the next two years. Vietnam and India remain the major recipients of Nigeria’s exported raw cashew.
This week, the federal ministry of agriculture revealed its roadmap for growth titled The Green Alternative. The initiative seeks to increase agricultural activity by 85% in crop production, and 15% in livestock and other non-crop produce.
If implemented effectively, it is expected to grow the sector’s share of non-oil exports earnings to 75%, thus serving as an alternative significant source of foreign exchange earnings.
Although the CBN’s flexible fx market regime is yet to gain full traction, non-oil exporters are now able to convert their export proceeds at a (broadly) market determined rate. This should spur growth within the sector over the medium term.

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