The study ‘Diversification and Non-Oil Export Opportunities for Nigeria States Post-COVID-19’ was commissioned by the NEPC through the Policy Development Facility (PDF) Bridge Programme for use by public and private sector stakeholders. Ernst & Young conducted a market analysis on six prioritised products from the Zero Oil Initiative and provided strategic recommendations. PDF Bridge has now developed a policy brief for stakeholders to highlight the key issues and recommendations. The full study can be accessed here.
Diversifying towards non-oil exports in Nigeria
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The Trade Policy Work Stream started out by conducting a needs assessment to get direct feedback from export-oriented MSMEs, export-supporting government institutions, and export business service providers to ascertain the capacity gaps. The top 5 challenges highlighted by the respondents include lack of market linkages, lack of finance, lack of market intelligence, limited knowledge of destination country requirements, and Export documentation.
Respondents were further asked about what they would like to see if there is an opportunity for assistance with capacity building for export readiness and export market access. Each responded provided its top 3 areas of preference for capacity building. The findings from the overall assessment provided a guide on areas to address.
In response to their needs, TRD workstream designed a targeted capacity building for the non-oil export community of practice to address the knowledge and skill gaps through a 4-part Export Capacity Building (CB) Series.
With the global COVID-19 pandemic came the need for local manufacturers to step up to the challenge and produce face masks, face shields, and PPEs due to dwindling supplies caused by high demand the world over. The support provided by government agencies to these entrepreneurs was critical, this in turn was derived from the technical advice supplied by the PDF Bridge programme under the Trade Policy Workstream through dialogues, studies, and roundtable events. The workstream focuses on non-oil exports by bringing underrepresented voices into economic policy and strengthening the participation of exporter groups in trade. The workstream engaged with representatives of Abia State Government during its dialogues particularly with the Director-General of the Abia State Marketing and Quality Management Agency (ASMQMA). This engagement led to increased capacity and redirection of strategy for the Aba Textile cluster in the production and distribution of finished goods. With help from the State Government’s agency on quality and standardization, Abia State Marketing and Quality Management Agency (ASMQMA), tailors generated an estimated $4-5million for the Nigerian economy from Abia State alone from the production of PPEs. This created a 110% increase in tailoring personnel.
This dialogue explores the alternative ways to provide market access to the southeast business hubs from Aba through Onitsha. COVID19 has caused businesses to reimagine their trade value-chain working actively to diversify roles. This dialogue explores ways that new technologies can help bridge the gap between buyers, sellers, and manufacturers.
Africa’s contribution to global trade in services is little with slow growth despite rapid globalisation and liberalisation. The continent’s intra – African trade in services is also relatively little. Nigeria’s services sector contribution to its GDP is huge, representing 55.8 per cent in 2017. It recorded a growth rate of 1.83percent in 2018. Hence, the services sector possesses the immense potential to promote diversification, employment, and growth, even without a current holistic services sector policy. This study specifically mapped and profiled key services sectors; reviewed domestic regulations relating to services; estimated the current and future potentials for export, and provided associated recommendations.
Continuous and consistent implementation of the Export Expansion Grant (EEG) has been identified as crucial to the diversification agenda of the Federal Government of Nigeria (FGN). Despite its importance, however, the programme has experienced various implementation challenges and, at least, three suspensions since inception. The aim of this study is to provide evidence-based information on EEG implementation to guide relevant stakeholders to reform and reposition the scheme for greater effectiveness. The study aims to specifically analyse the impact of the grant on the beneficiaries prior to suspension in 2013 and the post-suspension implementation from 2017. It also investigates the challenges faced by beneficiaries in their attempts to access the grant. The study applied both primary through survey and secondary data through desk review to address the set objectives of the study. The survey was conducted through three methods: (i) administration of questionnaires, (ii) Key informant interviews (KII), and (iii) focused group discussions (FGD).