Pick-up in Non-oil Exports QoQ


Tuesday, August 04, 2020 / 01:58 PM / FBNQuest Research / Header Image Credit: FBNQuest          


The latest quarterly Economic Report from the CBN puts non-oil exports provisionally at US$1.2bn in Q1 2020, indicating an increase of 27% q/q. The q/q increase is largely attributed to the rise in export receipts from manufactured products, notably plastics, textiles, footwear, wood products and metals.


The sectoral breakdown shows that export receipts from manufactured products, minerals and industrial sub-sectors rose by 43% q/q, 108% q/q and 46% q/q respectively. These data are compiled on a customs basis: total exports (other than oil and gas) amounted to US$2.2bn according to the CBN's balance-of-payments for Q1 2020.

The CBN's commentary shows that export receipts from food products and agriculture declined by 27% q/q and 7% q/q respectively. Collectively these segments accounted for 25.2% of the total. The decrease in export receipts for these segments was driven by reduced exportation of fish and wheat.


The CBN recently disclosed guidelines to access its non-oil export simulation facility, which was introduced in 2018. The focal export commodities under this initiative are cocoa, cashew, palm oil, shea and sesame seed. The facility is expected to improve exporters' access to concessionary finance and encourage reinvestment in value-added, non-oil exports production.


Another step by the CBN is the recent appointment of pre-shipment inspection agents (PIAs) for export cargoes. The core remit of the PIAs, as explained in the export guidelines released by the federal ministry of finance, budget and national planning, is to ascertain the quality, quantity and price competitiveness of exports from Nigeria.


Total non-oil export earnings (US$bn)

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Sources:: CBN ; FBNQuest Capital Research


The lockdowns and movement restrictions due to the pandemic have delayed the start of trading under the African Continental Free Trade Area (AfCFTA) from the initially set date of 01 July, 2020. We understand that the launch has been postponed by six months.


Stakeholders are hopeful that the current delay will provide an opportunity for more countries to ratify the agreement, as the integrated African market extends beyond the 29 countries that have ratified the agreement to date. Nigeria is yet to ratify.

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