Strengthening the structure of Trade Associations in the Non-oil Export sector for better Governance and Leadership

A roundtable event on the potentials of exporting the services sector in Nigeria. At the Roundtable, it was noted that among business owners and exporters, there is little understanding of what services export entails. Many businesses engage in service exports but are not aware of this. Understanding the four modes of services – Cross border trade, Consumption abroad, Commercial presence, and Presence of natural persons – is important for business growth. To achieve this, stakeholders including the NEPC will need to conduct capacity building and sensitisation workshops for exporters, working with relevant business associations.

Export Expansion Grant (EEG) was established under the Export Incentives and Miscellaneous Decrees of 1986 and amended into an Act in 1992 to accomplish the diversification agenda of the Federal Government of Nigeria (FGN). Other export support funds created under the same Act are the Export Development Fund (EDF) and Export Adjustment Scheme Fund (EASF). The funds have been repositioned in the Economic Recovery and Growth Plan (ERGP) of 2017-2020. The EEG is a post-shipment incentive scheme aimed to achieve three key objectives: (i) to enable exporters to expand their businesses more conveniently, (ii) make Nigeria’s non-oil export more competitive, and (iii) facilitate greater and faster foreign market penetration.

PDF II (now PDF Bridge)’s Trade Policy Workstream funded a study on “Analysis and Impact of the Export Expansion Grant on Export Potential, Market Access and Export Competitiveness in Nigeria”. This policy roundtable discussed the findings and recommendations from this study.

Micro Small and Medium-Scale Enterprises (MSMEs) are integral to the stimulation of developing economies as exploiting the full capabilities of MSMEs will improve trade competitiveness aimed towards achieving the objectives of the Africa Continental Free Trade Area (AfCFTA). PDF Bridge Programme recognises the role that MSMEs can play in the implementation of the AfCFTA; and is supporting the National Action Committee of the AfCFTA Secretariat by funding this study.

Aba Industrial City is an aggregation of thousands of MSMEs and mass producers of industrial goods including garment and leather products. If properly harnessed, the mass production capacities of component clusters of AIC and similar models are capable of positioning Nigeria at a competitive advantage in the global garment and leather industrial space. In 2016, the Textile, Apparel, and Footwear sector contributed N2 trillion ($6.6 billion), approximately 2% of Nigeria’s total GDP, to Nigeria’s economy.

This report documents the strategic plan for the implementation of the Africa Continental Free Trade Agreement (AfCFTA) by Nigeria following a diagnostic review of the prevailing trade ecosystem including the participants (traders and service providers), the regulating agencies, prevailing policies, and processes as well as the level of regional integration.