Due to the economic recession and low revenue from importation, the government has decided to diversify into the non-oil sector as a way to boost the economy.
Oluwatoyin Amao samples the views of Nigerians on how the nation could generate more revenue from export.
I think through a proper tax system, government can earn more money through levies and fines. Every product exported must meet a standard, must be of good quality and well packaged. If an exporter doesn’t meet the required standards, they get taxed.
Another way is to create ultra-modern storage facilities for perishable goods and agricultural produce, also Nigeria can make more money if we export value added products by turning raw materials into finished products and then shipping it.
The fall of crude oil prices have inevitably reduced the foreign exchange earnings. Therefore, there is need for Nigeria to focus on non-oil exports especially in the area of rice production and export.
The fall in price of crude oil has forced Nigeria to source for foreign exchange through diversifying the economy. One area that Nigeria can make more money is from export and this is through agriculture, specifically in rice production. Nigeria is blessed with arable lands for agriculture and to take advantage of this, government can empower farmers through subsidizing seeds for planting and also invests in storage facilities. In so doing, Nigeria will attain self-sufficiency and also export rice to its neighbours. Empowerment will encourage investors into the sector who can invest either in the storage or transportation. Harnessing this opportunity will bring millions of dollars to the Nigerian economy thorough exports.
Rice is one of the most consumed foods in the world. It has ready-made market especially in Western Europe. The problem with our local rice is poor processing due to lack of investment from government through policies. If this is checked, we can export over 10million tons of rice annually and subsequently rake in millions in foreign exchange.
One other way to make money from export is through entertainment. The industry has grown wonderfully over the years and is still growing; government can harness this growing opportunity through policies and human development in the sector. Our Nollywood and music industry is the best in Africa, which was achieved mostly by individual sheer competence and passion. If government can support this sector through funds and infrastructure, we can export our film, music and earn foreign exchange.
Nigeria can earn money through export by evolving workable economic plan and blueprint on our agricultural business and other non-oil sectors which is capable of building or growing the nation’s external reserves, generating employment for the people. Also, looking into our oil palm plantation in Ondo State, Edo States, we have rubber, cocoa and groundnuts from the North. With these and many more others, Nigeria will make huge revenue from export.
Nigeria can earn more money if we produce goods of comparative advantage to other countries. A country is said to have a comparative advantage in the production of goods like cloth. If Nigeria can produce cloth at a lower opportunity cost than another country, then exporting would be at a higher income for us. The reason is if we are specialized on the particular production and we produce in larger quantity, we can make more money from it. If we can add more value to our home made goods, like making it original and equally we embracing it. Other countries can then benefit because it will be more distinct from other countries products. Another reason that could earn us more money from exporting products is if we can harness our natural resources. Example, Ajaokuta steel company has not been effectively utilized and as result of that we are not any time close to exporting to make money. Also, another reason is poor research facilities. That is we can also get recognition on our products here in Nigeria, if we do more of research.
Ojodu berger, Lagos
I think we Nigerians need to appreciate what we produce in this country, that will go a long way into us being able to invest our time and resources into this products before we can begin to talk about ways of getting more money from them.
Appreciating our own thing is the first step to it; we need to do what I will refer to as a grass root identification and improvement on such products. E.g our agricultural products like cocoa, timber can serve as export goods. We need to identify them and put more resources into their production; just like the saying that it takes money to make money, if Nigeria want to earn from our export products, we need to spend our resources on producing this stuffs in the right quality and quantity; we shouldn’t be a mediocre at the level of production.
Other countries should be able to know that those stuffs are properly produced here in this country.
Government policy should also favour the production of such identified potential export goods, thereby encouraging people to venture more into their production. This will really go a long way because a product with strict government embargo will definitely not be able to fetch us enough money from the international market.
I just believe we need to identify a potential export product, invest more on their production and get our policy right to favour their production, which will help to increase the returns we get from those export goods in the international market.
Export has always been a major source of revenue for Nigeria in terms of crude oil and gas. Early 2014, Nigeria exported $99 billion and imported $52.3 billion, resulting in a positive balance of trade. Due to Nigeria economic recession and drop in crude oil price around the Globe, Nigeria export revenue generation has reduced due to change in crude oil price. Therefore, there is need to foster a better means of improving on other sources of exportation aside crude oil. According to John. C. Maxwell “the only adequate preparation for tomorrow is the right use of today”. Nigeria needs to diversify into other segment of the economy so as to promote exports. As a country, we need to promote our economy by promoting infant industries, welcoming reverse innovation, Intellectual property right, and agricultural resources so as to boost exportation which will have an economic impact on the economy. There is a need to change policies to promote our export system as seen by the developed economies. This will help to bolster the exportation of Nigeria and increase earnings for the Nigerian Economy. If Nigeria starts exporting on other commodities aside oil, it will definitely somewhat serve as revenue earner for us as a country. Reverse innovation is a strategy or situation where innovation emerges from developing economies and such innovation are exported to developed economies. It’s a strategy of innovation where developing nation produces and distribute to developed market or nation.
Festac town, Lagos
If we optimize the export processes, trade relations and support local production and expansion, Nigeria will likely earn a lot more than current earnings from exports. Technology is pertinent to improving the quality of our own local products to match export and global consumer standards.
Nigeria can earn more money from exports in a lot of ways, some of the ways are: localization of industries: by the definition, localization of industries is the bringing back of operation of industries from foreign investors to the civilians. The citizens of the country carry out operation and manufacture products for export and earn money; encouragement of agricultural practice: Agricultural practice is a major source of revenue to Nigeria. Encouraging agricultural practices will definitely earn more money to Nigeria export. Revaluation of currency: Revaluing the currency either from valuation to devaluation should make way for business transaction advantages through good currency purchasing power; protection of infant industries: Through protection of infant industries, organization newly formed will be encouraged to operate, those aids creation of home based product and there-in, generate additional revenue from exports of products ; economic growth: For Nigeria to earn more money from exports, Nigeria economy as a whole has to take an high development in all areas e.g price of goods, subsidy issues should be corrected etc.
I think for Nigeria to improve her economy through export, she first needs to cut down on imported goods and patronize her own made goods, charity they say begins at home. When import is curtailed to the barest minimum is when citizens will start taking locally made goods serious. These goods can then be valued when they are taken outside the country. We also need to establish good relationship with the neighbouring and other international countries to make our exportation appeal to them; this way import and export tariff will be well regulated so as to maximize profit. Finally I think custom duties should be made to encourage export and discourage incessant and unnecessary importation of foods like rice, turkey among others while encouraging farming at the same time so as to export food crops like cocoa, groundnut and so on.
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