ITC Reveals Nigeria’s $3bn Unrealised Export Potential: A Golden Opportunity
Nigeria’s unrealized export potential is estimated to be $3 billion, according to data from the International Trade Centre. The report highlights key export commodities in Nigeria, including urea, cocoa, and cashew nuts, which have significant untapped potential. Urea, for instance, has an actual export value of $987 million, with an additional $520 million in unrealized potential. Cocoa exports are valued at $708 million, with $404 million in untapped potential, while cashew nuts have $220 million in actual exports and $437 million in unrealized potential.
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Other commodities with significant export potential include sesame seeds, aluminum, and tin ore, which have actual exports of $319 million, $220 million, and $138 million, respectively, and untapped potential valued at $264 million, $155 million, and $83 million. Electric energy exports reached $112 million, with an unrealized potential of $48 million. Ginger, oil cakes, shrimp, and rubber exports were valued at $61 million, $96 million, $68 million, and $61 million, respectively, with untapped potential standing at $64 million, $96 million, $82 million, and $25 million.
Experts have urged the government to address the structural challenges limiting Nigeria’s export potential. Associate Professor Unekwu Onuche of the University of Africa, Bayelsa State, identified production capacity, bureaucratic inefficiencies, and product quality as critical issues. “If you have potential but don’t utilize it, especially in exports, several factors could be responsible. Do we have the capacity to produce enough to meet demand? The market exists, but production often falls short,” Onuche said. He stressed the need for an enabling environment to boost production, citing cumbersome export procedures and product quality issues as major concerns.
Economist Shedrach Israel of Lotus Beta Analytics echoed these sentiments, emphasizing the need for targeted interventions to boost agricultural production. “To increase exports, we must scale up production. Take rice, for instance. Initiatives like the Anchor Borrowers’ Programme significantly improved output. Similar efforts are needed for cocoa and other cash crops,” Israel said. He pointed to favorable climates in the southwest and southeast as opportunities for expanding cocoa production.
Meanwhile, the Executive Director of the Nigerian Export Promotion Council, Nonye Ayeni, revealed that Nigeria earned $2.7 billion from non-oil exports in the first half of 2024, a 6.26 percent increase from the $2.53 billion recorded in the same period in 2023. Ayeni attributed this growth to political stability following the 2023 general elections, rising demand for Nigerian products, and initiatives promoting export culture. During the first half of 2024, Nigeria exported 211 different products, with cocoa beans, urea/fertilizer, and sesame seeds contributing 23.18 percent, 13.78 percent, and 11.04 percent of total non-oil export revenue, respectively.
