Nigeria has an unrealized export potential of $3 billion, according to the International Trade Centre (ITC). The report highlights key export commodities where Nigeria could increase its global market share. Urea leads the way with actual exports valued at $987 million and an untapped potential of $520 million. Cocoa follows with exports worth $708 million, leaving $404 million in unrealized potential. Cashew nuts, sesame seeds, aluminum, and tin ore also show significant gaps in their export potential.
Key statistics include Urea: $987 million in exports, $520 million potential, Cocoa: $708 million in exports, $404 million potential, Cashew nuts: $220 million in exports, $437 million potential, Sesame seeds: $319 million in exports, $264 million potential, Aluminum: $220 million in exports, $155 million potential, Tin ore: $138 million in exports, $83 million potential. Other products like ginger, oil cakes, shrimp, and rubber have also shown gaps between current exports and potential, totaling millions in unrealized value.
Experts urge the Nigerian government to address structural challenges, such as production capacity, bureaucratic inefficiencies, and product quality, which hinder the country’s export growth. Unekwu Onuche, an associate professor at the University of Africa, Bayelsa State, emphasized the need for an enabling environment to boost production and improve export procedures. Economist Shedrach Israel added that increasing production is key, using rice as an example of successful intervention programs. He also noted that favorable climates in the southwest and southeast could boost cocoa production.
In 2024, the Nigerian Export Promotion Council (NEPC) reported that Nigeria earned $2.7 billion from non-oil exports, a 6.26% increase from 2023. The shift from raw agricultural products to semi-processed goods is part of evolving trade dynamics. Non-oil exports, such as cocoa beans, urea, and sesame seeds, contributed significantly to Nigeria’s export revenue in the first half of 2024. The country’s export activities span across 122 countries, with major markets in the Netherlands, Malaysia, and Brazil.
The NEPC urged banks to enhance financing for exporters and leverage the African Continental Free Trade Area to unlock new global opportunities.