More facts have emerged why non-oil exports will account for f over N5.95 trillion or over 90% of the 2023, proposed Budget estimate of N6.34 trillion while crude oil sales will account for N373.7 billion. This is because of the drop in the demand for oil in the international oil market and subsequent drop in revenue as many countries resort to the use of solar and other alternative sources of energy to fire their plants and run their automobiles.
Indeed, over the years, oil has remained the bedrock of the nation’s economy. Aware that the export Urea/fertilizer, which Russian Federation and Ukraine, the two countries currently at war since February , 24, 2022, are making huge chunk of their annual revenue from the products to service their economy may have informed why the Nigerian government believes that the product could serve the same purpose in the country with total commitment.
Many believe that with the combination of such other exportable products like Cocoa beans, sesame seed and aluminum ingots, among others which are currently exported to 112 countries, spread across Europe, Asia, South and North American Continents, by 570 companies as against the 2,000, that were said to have been registered by the Nigerian Export Promotion Council, NPC, to participate in exporting Nigerian products, it would make the difference in the economy in 2023, Fiscal year.
The Nigerian Bureau of Statistics, NBS, had reported that in the first half of 2022, total non-oil export was about 2.60 billion as against $1.44 million recorded during the same period in 2021. That much was also confined by Ezra Yakusak, Managing Director Chief Executive Officer, CEO, of NPC.
The Nigerian government decision to introduce Import Adjustment Tax, IAT, and additional Taxes/Levy, on 122 tariff lines products as contained in the provisions of the 2022-26, Economic Community of West African States, ECOWAS, Common External Tariff, may have informed why more of the Nigerian companies involved in importation of foreign products into the country have registered with NPC, to participate in the market.
The Lawmaker may have sent a message to the importing firms that it would pay them to embrace the government export diversification policy as ‘’some of the Tax waivers granted them in the past would be reviewed, noting that ‘’extension for tax waivers would no longer be guaranteed.
He may have gladdened the heart of Nigerians when he said that ‘’billions and trillions of naira will be generated by the NCS , Federal Inland Revenue Services, FIRS, and other government revenue agencies if such window s are closed against beneficiaries abusing and invariably provide required money the 2023, budget funding.
As a prelude to further discourage importation of foreign products into the country and promote exports, Olamilekan, the Senate Finance Chairman, was said to have directed the NPC ‘’to provide a comprehensive list of companies currently enjoying tax waivers from the government to Committee for necessary action.
Akinyemi, the UBA plc, DMD, who could not hide his feelings had said that had had said that that ‘’the country’s creative industry is one of the fastest growing industry in the world that was said to have been spurred by the emerging digital trends in Technology.
Going down the memory line, in an event organised by the Finance Correspondence of Nigeria, FINCAN, recently, he was said to have cited the era of Groundnut pyramids in the ancient city of Kano, Cocoa House in Ibadan, Capital of Oyo state, south west Nigeria,, which had been abandoned by the government to pursue oil, described as the black gold, which gives the country more revenue to fund its yearly budget estimates.
Going by what is happening in the nation’s export market and the tough decision that had been taken by Lawan led Senate on the recommendation of its Committee on Finance, to reject the N6 trillion waiver built into the 2023 budget may have given the Union Bank PLC top Executive an insight that the country is moving to the third revolution of exports ‘‘ japa syndrome’’ .
The News Agency of Nigeria, NAN, had reported that he had cited the ‘’Innovation hub in Yaba, Lagos, the nation’s commercial centre which portends a large pool of intelligent Nigerians building things in the Fintech and technology world that are not even recognised people, but it is a huge potential full of export business. ‘’We are in a world technology that Nigeria has to take advantage of it’’, he insists.
He may have shocked Nigerians when he revealed that 200 exporters were responsible for 95% of the $4.2 billion the country generated from non-oil exports in 2021.The UBA plc, top Executive had said that the $4.2 billion revenue that was achieved in 2021, through informal export , which include wholesale trading in some sectors of the economy such as information technology, IT, entertainment and solid minerals.
The UBA plc, DMD, would want the government ‘’to also talk about the creative industry the same way it was speaking about exportable commodities and crude oil. He was said to have given kudos to Nigerian Export-Import Bank, NEXIM and NPC over what they were doing and the Godwin Emefiele led Central Bank of Nigeria, CBN, for the incentives given and the rebate scheme launched to boost the country’s export earnings.He was said to have suggested that ‘’this should be done from the Fiscal perspective for economic growth and development’’.
