By citybusinessnews@yahoo.com —
Due to the ongoing economic crisis generated by the outbreak of Coronavirus pandemic (Covid-19), Nigeria is to lose 75% of its Seaport revenue in 2020.
Speaking on Thursday during an interactive session on Webinar tagged, ‘Non-Oil Exports: Disrupting Nigeria’s Growth Cycle’, Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala Usman, explained that 78 per cent of export was crude oil cargo, adding that crude oil cargo contribute the highest revenue of the nation’s Seaport.
Bala Usman also used the opportunity to canvass diversification of the Nigeria‘s economy through non-oil export.
Bala Usman explained that 191 million metric tons of export cargo passed through the nation’s ports in 2019, 78 percent of which was crude oil cargo while the remaining 22 percent was non-oil export.
Usman said: “Nigerian crude shipment is tied to exportation and it contributes the highest revenue of the ports. This underscores the importance of diversification of the economy through non-oil exports in order to reverse the trend,”
While emphasizing need for inter-agency collaboration, Usman pointed out the need to encourage local investors and make domestic investment a priority.
The NPA boss also disclosed that the agency was in discussion with the Lagos and Ogun State Government on how to establish modern trailer part.
In her contribution, Yewande Sadiku, executive secretary/CEO of the Nigeria Investment Promotion Council (NIPC) said foreign direct investment (FDI) into countries in Africa is expected to fall by 30-40 percent in 2020-2021.
She emphasised the urgent need to not only attract more foreign direct investment but to also increase production capacity in-country in order to grow the non-oil export.
Sadiku said:“Whether oil or non-oil export, investors are looking for one thing, which is a conducive environment, financial return as well as sustainable and available asset,” she stated.
According to her, Nigeria needs to encourage domestic investors by increasing the rate of incentives extended to domestic investors via tax, removal of administrative and regulatory bottlenecks, quick delivery after care /investors care, and improvement in business environment.
Ugo Obi Chukwu, publisher, Nairametrics, reiterated the need to do away with reliance on crude oil as a nation, adding that Nigeria would continue to surfer currency depreciation, if the country does not diversify.
Segun Awolowo , ES/CEO Nigerian Export promotion council said Nigeria’s Non oil export grew from 1.7 Billion USD in 2016 to 3.16Billion USD in 2018
