Breaking News BUSINESS

EXCLUSIVE:Nigeria Must Boost Non-Oil Export Earnings To Save Depreciation Naira-EX-Minister

EXCLUSIVE:Nigeria Must Boost Non-Oil Export Earnings To Save Depreciation Naira-EX-Minister……CONTINUE READING>>>>>>

Against the backdrop of the continuous depreciation of the Naira following the new foreign exchange (forex) market policy, a former Minister of Finance, Mr Olusegun Aganga, has said that the only way to strengthen the nation’s currency is to increase productivity and capacity, and become export-oriented.

Aganga, also a former Minister of Industry, Trade and Investment, stated this yesterday, in Lagos, while delivering the 3rd Adeola Odutola Lecture organized by the Manufacturers Association of Nigeria (MAN) as part of its 51st Annual General Meeting.

He added that for Nigeria to achieve 15 percent export to gross domestic product (GDP) ratio, it needs to earn about $72 billion from non-oil exports.

His words: “Nigeria’s export to GDP ratio is also very low when compared to Malaysia 76 percent, South Africa 31 percent, China 24 percent and Brazil 12 percent. Nigeria will need to earn about $72 billion from non-oil exports to achieve 15 percent.”

According to him, there is a need to update the Nigeria Industrial Revolution Plan (NIRP), noting that almost all the global exporters, and in particular Nigeria’s competitors for the African market now have a new plan.

“China, the largest supplier of imported goods into Nigeria and Africa has already commenced Made in China 2025 plan. South Africa, Morocco and Egypt have been promoting manufacturing and adding value to their exports, particularly in sectors like automotive, agribusiness and chemicals,” he noted.

Aganga tasked the federal government to declare the industrial sector a national priority sector, asserting that investment in manufacturing is better than spending billions of dollars to defend the Naira.

He stated: “This is the time to be bold, a time to act. Declare the industrial sector a national priority sector and back it with plans, policies and money. History has shown that industry multiplies national wealth, creates jobs, is critical for exchange rate and balance of payment management and would make the Naira stronger.

“What is the wisdom in spending billions defending the Naira when it continues to fall, instead of investing in genuine manufacturers and exporters of high-value products that would earn Nigeria foreign income and more?”

Aganga added that embracing competitive manufacturing under AfCFTA is crucial for Nigeria’s economic growth and integration into the global marketplace.

“Nigeria may not be able to compete with China now, but by investing in infrastructure, innovation and skilled labour, while addressing trade barriers, the business environment and promoting market access, Nigeria can certainly position itself as the manufacturing hub in Africa,” he added.……CONTINUE READING>>>>>>

About the author

Postreporters

Leave a Comment