News in Brief:
– Nigeria’s non-oil export sector has seen a significant surge in 2024, reaching $5.456 billion, driven by strong performances in cocoa and fertiliser exports.
– Strategic government policies and increased production have fueled this 20.77% growth, promising continued expansion in the sector.
Nigeria’s non-oil export sector has witnessed a remarkable surge in 2024, generating $5.456 billion in earnings —a substantial 20.77% increase from the $4.517 billion recorded in 2023.
This impressive growth is largely attributed to a boom in cocoa and fertiliser exports, coupled with strategic government trade policies, according to the Nigerian Export Promotion Council (NEPC).
Key commodities drive export growth
Cocoa beans and urea/fertiliser emerged as the star performers, contributing significantly to the sector’s revenue.
Cocoa beans alone accounted for 30.55% of total non-oil exports, while urea/fertiliser contributed 15.74%. Other significant exports included sesame seeds, cashew nuts, aluminium ingots, cocoa butter, copper ingots, soya beans, and hibiscus flower.
Notably, cocoa butter experienced a surge in demand due to improved processing and favourable market conditions.
Drivers of success: production, policy, and partnerships
The NEPC identified several key factors that fueled this impressive growth. These include:
- Increased Production: Enhanced production of key agricultural and industrial commodities, particularly cocoa and fertiliser, played a crucial role.
- Strategic Policies: Improved trade policies and enhanced market access, facilitated by the Federal Government, created a more conducive environment for exports.
- Trade Partnerships: Increased participation in regional and international trade agreements broadened market reach for Nigerian products.
- Targeted Initiatives: The positive impact of NEPC initiatives, such as the #doubleyourexport campaign and the Export 35 Redefined initiative, further boosted export performance.
According to Nonye Ayeni, the executive director and CEO of NEPC, despite global economic challenges, the council and other agencies have driven economic diversification to achieve an impressive non-oil performance in 2024.
Top exporters and the significance of ICBT
Indorama Eleme Fertilizer and Chemical Limited and Starlink Global & Ideal Limited led the pack among exporting companies, with earnings of $475.3 million (+8.71%) and $456.7 million (+8.37%), respectively.
Substantial exports of fertilizer and cocoa products drove their dominance. Additionally, the NEPC acknowledged the significant contributions of Informal Cross-Border Trade (ICBT), while revealing that these transactions are currently underrepresented in official figures.
To this end, Ayeni stressed the need for improved tracking mechanisms to accurately reflect the true scale of Nigeria’s export potential. The council reported that 7.291 million metric tonnes of exportable products were exported in 2024.
Looking ahead: optimism for continued growth
Essentially, the NEPC projects continued growth in non-oil export earnings in the coming years, contingent on sustained policy support and active private sector involvement.
Nigeria’s cocoa sector is a significant contributor to the national economy, providing livelihoods for numerous farmers and supporting a growing processing industry. The country is among the top cocoa producers in Africa. According to a recent article by this publication, the industry is expected to grow by as much as 40% in 2026, fueled by climate change.
