The need for federal, states and local governments to generate adequate revenue from other sources. Nigeria, africas biggest oil producer, on the brink. Exporting license by ismail abdulazeez feb 27, 2020 16. The data comes from imf, deutsche bank, citi research and reuters. Exchange rate volatility and nonoil exports in nigeria. Crudeoil exports can resume from a nigerian terminal capable of exporting 200,000 barrels a day after two months of outages there contributed to a petroleumprice rally. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958.
Exports to embargoed or sanctioned countries continue to require authorization. Oct 24, 2016 most nigerians say the only way out of this recession is to increase our non oil exports. The nonoil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the nonoil export sector. Pdf the paper was set to examine the relationship between different aspects of service trade and non oil export in nigeria as well as assess the. This surge was due to increases recorded in the export of goods within the manufacturing and industrial sectors. Oil provides 95% of foreign exchange earnings and about 80% of budgetary revenues in nigeria. Pdf the impact of nonoil export on the nigerian economy. Word format after preparing the same as per our submission. Year jan feb mar apr may jun jul aug sep oct nov dec. Nigerias oil production in 2018 amounted to some 2. According to export market analysts, the growth in nonoil exports in the last few years has been enormous. Nigeria and also examines the shortrun and longrun impact of nonoil export on economic growth in.
However, one striking feature of the export volume in nigeria during the study period was the dominance of oil. Nigeria nonoil export prospects english the world bank. Cbn introduces uniform exchange rate for naira by ismail abdulazeez mar 22, 2020 4. It provides for the levying and payment of terminal dues by vessels evacuating crude oil at terminals in nigeria. Impact of exchange rate volatility on nonoil export. The countrys four stateowned refineries are currently operating at just 5% capacity following decades of p. The study investigates effect of nonoil export on the economic development of nigeria. Nexus between oil revenue, nonoil export and industrial output in nigeria. The decline in price of oil in recent years has led to a decrease in the funds available for distribution to the three tiers of government in nigeria. Crude oil exports can resume from a nigerian terminal capable of exporting 200,000 barrels a day after two months of outages there contributed to a petroleumprice rally. In general, oil accounted for over 90 per cent of nigerias exports over the period 19862008. Nigerias nonoil export sector is still in its infancy and came into mainstream in the last 10 years due to the policies that were put in place that encouraged the sector to invest in. Hope of resumption of crude oil export from nigeria to the united state of america has been renewed by the president of a washingtonbased global water and energy strategy team gwest, paul wihbey.
W withheld to avoid disclosure of individual company data. Our step by step guide to agro exportation from nigeria to the united states. Nigeria, africas biggest oil producer, is on the brink of another cycle of energy industry attacks published wed, sep 27 2017 3. Now since i have made the above points clear, below are 25 hottest profitable non oil export products in nigeria. Thanks to the federal governments policy and support for the nonoil industry especially agriculture. Ezeudu 2014 notes that recent proactive efforts from the private sector, export processing free zone scheme and nigeria export and import bank. Please, sit back and study the below research material carefully. Imports from nigeria of crude oil and petroleum products. This affected everyone from producers to consumers. The system is an advanced method for the submission and gathering of oil and gas production data, export data and helps to improves the transparency in hydrocarbon accounting in nigeria and the. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. The nigerian economy, like other oil exporting countries, is constantly exposed to oil price. Nigeria to resume oil export to united statesnews the. This study examines the contribution of non oil export to the growth of the nigerian economy for the period.
According to statistics by the chamber of commerce, the nonoil product export sector is rapidly on the rise. The impact of nonoil export on domestic investment in nigeria. Impact of nonoil export on economic growth in nigeria project material. It also provides 95% of foreign exchange earnings, and about 65% of government budgetary revenues nigerias proven oil reserves are estimated by the united states energy information administration eia at between 16 and. The dataset contains oil prices needed to meet expenditure, marginal cost of producing one more barrel of oil and transportation costs. Why is nigerias biggest import refined petrol while its most. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. This statistic depicts the oil production in nigeria from 1998 to 2018. This impressive performance in terms of gdp growth rate of 6.
Nigeria has recorded a significant rise in its nonoil export, with agricultural goods increasing the countrys foreign exchange earnings. Essentially, the results suggest that the exchange rate volatility is only effective in the long run but not in the short run in the case of nigeria. The national bureau of statistics nbs recently reported that nigeria recorded an export rise of 73. Nigeria records rise in nonoil export agro news nigeria. In carrying out this study, secondary data were collected and empirical analysis was made. Effects of nonoil export on the economic development of nigeria. Oil and gas transport and storage laws in nigeria lexology. S increased by 10% in 2010, primarily due to an increase in international oil prices. Nigeria adds 11 nonoil products to export list by businessnews staff on july 8, 2014 in line with the federal governments efforts at diversifying the economy, the nigerian export promotion council said 11 more products had been added to the nonoil products that the country exported to the global market between 20 and now.
Admittedly, a series of recent academic papers have touched on sustainability of exchange rate in relation to general export oil and non oil forgetting the fact that the quantity and price of. The effect of nonoil components export on the economic growth in nigeria continue to be debated and tested in order for turning around of the nations economic outlook for the future good, by strengthen nonoil export growth and success and also promote a nonoil export culture. Data were analysed using descriptive statistics, correlation analysis and regression analysis. The discovery was made by shellbp, at the time the sole concessionaire. The study, apart from empirically providing information that has failed to give backing to recent claims of non oil exports led growth in nigeria, has also set a data benchmark for appraisal of. Nigeria nonoil export prospects english world bank documents. The recent fall in global prices of crude oil triggered a sharp decline in the countrys revenue and foreign exchange earnings. The oil terminal dues act is relevant to the export of crude oil. In areas like nigerias niger delta for example, decades of oil production7 have virtually destroyed the environment, many peoples livelihoods and their hopes for a better future. The facility will help redress the declining export financing and reposition the sector to increase its contribution to. According to export market analysts, the growth in non oil exports in the last few years has been enormous. The nigerian crude oil and gas industry business investment. It is one of the worlds top oil producers, but it doesnt have sufficient gasoline to fuel its struggling economy. Sep 27, 2017 nigeria, africas biggest oil producer, is on the brink of another cycle of energy industry attacks published wed, sep 27 2017 3.
On the basis of the above findings, the study concludes that. Profitable nonoil export products in nigeria feedbackpoint. Kachikwu hopes to privatize more of nigerias oil industry while streamlining nnpc operations to make the company more like a commercial oil firm. The president, on the other hand, wants to keep the countrys resources under state control to ensure that the resulting revenues reach his support base in northern nigeria. The effects of the recent global economic crises on nigeria s economy have reaffirmed the urgent need for economic diversification in the country. Nigeria, in ascertaining these objectives, the following. As an export agent, he needs more of common sense than capital in order to make it in export.
The study used per capita income as proxy for economic development and expressed it as a function of non oil export volume, trade. Trends of oil, nonoil and total exports in nigeria, 1986 2008 however, one striking feature of the export volume in nigeria during the study period was the dominance of oil. He makes his money from the commission he gets from linking buyer and seller together in export. For nigeria to experience gradual transformation towards increasing reliance on traditional non oil and manufactured export, we recommended that there should be a change in the objectives and. Exports in the nigerian economy could be viewed from the oil and nonoil. Nigeria exports of crude oil and petroleum products by. At the moment, nigerias oil industry is producing well under capacity. Nigerias oil export to rise by % in july vanguard news. Service trade and nonoil export in nigeria mmaduabuchukwu. Nigeria has an estimated 120 trillion cubic feet of nigeria, about three times the size of oil reserves 22billion.
Oil prices have decreased significantly since summer 2014. The non oil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the non oil export sector. A study of agricultural and mineral resources exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Nedp was set up to mobilize 100,000 small scale exporters and service providers to assist the government in its quest to diversify the nigerian economy from overdependence on oil. Impact of nonoil export on economic growth in nigeria. Effects of nonoil export on the economic development of. This paper extends the previous empirical studies on the issue. Macroeconomic base for nonoil export led growth policy article pdf available june 2016 with 802 reads how we measure reads. Nigerians and the leadership are now awakened to the inevitability of non oil export for survival and sustainable development.
Nigerians and the leadership are now awakened to the inevitability of nonoil export for survival and sustainable development. Pdf determinants of nonoil export and economic growth. This is the man who has a good understanding of how export business is done, knows how to get foreign buyers and local supplierssellers. Most of nigerias fdi is directed to the oil and gas sector. Besides the eeg, the export adjustment scheme eas, export processing zone, the nigeria import export bank nexim, among other instruments have been put in place to ensure a hitchfree export trade. Although no country is immune to such global crises, the over reliance on oil export revenue by nigeria.
Will natural resources, particularly oil and gas, from the gulf. Oil production in nigeria in barrels per day 2018 statista. Now since i have made the above points clear, below are 25 hottest profitable nonoil export products in nigeria. The positive coefficient of the exchange rate variable though not significant suggests that an appreciable depreciation of the exchange rate could lead to increase in non oil exports in nigeria. The essence of this work has been to determine the effect of non oil export on economic growth in nigeria, during the period of 19862010. Why is nigerias biggest import refined petrol while its. The mono economy nature of nigeria and the need to diversify the economy form part of the motivation for the study. Exports to embargoed or sanctioned countries continue.
Pdf nexus between oil revenue, nonoil export and industrial. Now the quite a long tip sheet for exporting from nigeria, but a necessary one. This notwithstanding, it is a very popular food item that is easy and fast to. The evolution of the export structure is described. Nigerias oil producing communities 1630 connecticut ave, n. Overdependence on oil revenue has more positive impact than negative impact on nigeria. Uniprojects aim of providing impact of nonoil export on economic growth in nigeria project research material is to reduce the stress of moving from one school library to another all in the name of searching for. The study investigates effect of non oil export on the economic development of nigeria. This report examines the export potential of nigerias principal nonoil sectors, agriculture and manufacturing. It is well documented in literature that developing countries heavily rely on primary products. In specific term, nigeria is more of a gas province than an oil one. Nigeria unserious about nonoil exports vanguard news. Contribution of non oil exports to economic growth in nigeria 1985.
Most nigerians say the only way out of this recession is to increase our nonoil exports. Diversification of nonoil export product as a precondition. The nigerian export promotion council nepc headed by mr. Despite the increase, nigerias oil export remains over 400,000 bpd below the nations 2. This study examines effect oil revenue on nonoil export in nigeria for the period. As of 2000, oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 14% of its gdp. Pdf the study empirically examines the effect of nonoil export nox on. Now to make money as a nonoil products exporter in nigeria, you must first assess your companys export readiness. The impact of exchange rate on nigeria nonoil exports.
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