Global Courant
The decline in exports from Nigeria has had far-reaching consequences for the country, especially non-oil exports, as the country has limited efforts to diversify its economy. The over-reliance on oil has made the country vulnerable to fluctuations in global oil prices, making it susceptible to economic shocks.
Declining non-oil exports have also contributed to a growing trade imbalance as Nigeria imports more than it exports. This imbalance has put pressure on the country’s foreign exchange reserves.
Agricultural products and agro-processed products form one big part of the country’s non-oil exports at 30.12 percent. Over the years, Nigeria’s agricultural exports have been on a worrying downward trajectory despite its huge potential in the agricultural sector. One of the biggest hurdles to the country’s agricultural exports is inadequate quality control measures.
Earlier this year, the National Agency for Food and Drugs Administration and Control (NAFDAC) revealed that more than 70 percent of Nigerian food export abroad is rejected. The agency expressed concern about the dire state of the export trade for regulated products leaving the country.
Recently, the Director General of NAFDAC, Prof. Mojisola Adeyeye, identified non-compliance with advisory guidelines from the agency and the reluctance of exporters to adhere to basic sanitary measures as factors contributing to the rejection of Nigerian food products in the United Kingdom. Adeyeye, however, said NAFDAC has held a meeting with the UK Food Standard Agency to change the prevailing narrative and curb the rejection of Nigerian food products in the global market. “Almost all exported food products are processed without regulatory testing by NAFDAC. Therefore, it is not surprising that all items exported without NAFDAC quality control and safety testing are rejected,” she said.
Nigeria’s non-oil exports are especially concentrated in Europe from a geographical point of view. Countries in the European Union consume more than 70% of Nigeria’s non-oil exports. The country’s main export markets are West Germany, the Netherlands and the United Kingdom. The rate in the United States has remained stable at around 10%. Exports to Japan have not increased above 3%. Only 3.0% of Nigeria’s non-oil exports are sent to other African countries, despite efforts to increase intra-African trade through the establishment of the 16-member Economic Community of West African States (ECOWAS) and others treaties.
“Poor packaging, disregard for import requirements from trading partners, countries leaning towards open markets for exports without any form of minimum safety or quality specifications; reluctance to invest in pre-export activities that contribute to ensuring sustainable exports; and disinformation on the role of NAFDAC in the pre-shipment inspection and verification of container filling,” Adeyeye said.
It is baffling why some individuals or companies exporting food from Nigeria choose not to comply with the minimum sanitary measures and regulatory testing by NAFDAC. This lack of compliance ultimately results in significant financial losses for those involved. Non-compliance is a counterproductive strategy for food exporters from Nigeria.
The rejection of Nigerian exports abroad represents a major economic setback for the country. Exports are a crucial source of income and foreign exchange, contributing to the country’s GDP and creating jobs for its citizens. When a large percentage of these exports are rejected, it results in a direct loss of income, leading to a decline in economic stability and development.
The high number of rejected exports is having a damaging effect on Nigeria’s international reputation. It erodes the trust of trading partners and foreign markets, making establishing long-term and mutually beneficial trade relationships a challenge. This, in turn, could hinder foreign investments and partnerships that are essential for the country’s economic growth.
