Nigeria targets $30b non-oil revenue

To restructure the economy, the Federal Government is targeting at least $30 billion revenue from non-oil sources.

This will be an increase of $25billion from the current $5 billion.

Nigerian Export Promotion Council (NEPC) Director – General Segun Awolowo announced this plan yesterday after the National Economic Council (NEC) meeting chaired by Vice – President Yemi Osinbajo at the Presidential Villa.

With him at the briefing were Ebonyi State Governor Dave Umahi, Kwara State Governor Ahmed Abdulfattah and Kebbi State Governor Atiku Bagudu.

Awolowo said Nigeria was going through the sharpest fall of export revenue in her history, losing over $100 billion (N30 trillion) between 2015 and 2017 due to the crashing oil prices, which resulted in recession.

He said: “The NEPC made a presentation to the NEC on a plan to restructure the Nigerian economy to survive without crude oil. The plan is called ‘the zero oil plan’.

“Council was informed that there was urgent need to rapidly ramp up non-oil exports as our future earnings from crude oil face significant headwinds.

“The zero oil plan aims at earning at least $30 billion from non-oil sources in the near to medium term as against the current earnings of about $5 billion.”

Awolowo said the objectives of zero oil plan is to add $150 billion to Nigeria foreign reserves in the next 10 years, create 500,000 jobs, lift 10 million Nigerians out of poverty and integrate each state of the federation into the export value chain.

He said that the focus of the plan is on the export of the following crops: rice, wheat, corn, palm oil, rubber, hides and skin, sugar, soya beans and automotive parts among others.

Awolowo listed the destination countries for Nigeria’s exports to include Netherlands, China, Iran, Germany, United Kingdom, France, Spain, Italy, India, Saudi Arabia, among others.

He said Nigeria Export Import Bank (NEXIM) briefed the Council on the “States Export Development Initiative” which is being pursued as a medium to long term strategic plan aimed at stimulating and increasing deliberate funding intervention to SMEs in the non-oil sector for attainment of its objectives.

He added that Council was informed that one of the major objectives of the initiative is contributing to the implementation of economic policies of the country, like the ERGP and Agricultural Promotion Policy, among others.

He added that the initiative is built on schematic transaction dynamics with key features like provision of a dedicated funding of a minimum of N5 billion as a pilot phase with window for other facilities and partnership for transactional support.

The Council also constituted a committee towards improving Nigeria’s non-oil exports.

The committee is made up of Governors Badaru Abubakar (Jigawa) Akinwunmi Ambode (Lagos) and Dave Umahi (Ebonyi), Ministers from Industry, Trade & Investment, Agriculture & Rural Development, Power, Works & Housing, Transportation and Finance.

Other members are  the (NEPC), NEPZA, NEXIM Bank, and the Central bank of Nigeria (CBN).

Governor Abubakar is the Chairman while and Industry, Trade & Investment Minister Okechkwu Enelamah is Co-Chair.

The Committee is expected to submit an initial report by November. It will deliver a concise action plan on how to drive non-oil exports based on the presentations and discussions at today’s Council meeting.