My Blog

Category: Trade

  • Industry Ministry’s $500m Export Claim Faces Scrutiny

    Industry Ministry’s $500m Export Claim Faces Scrutiny

    Nigeria’s Minister of Industry, Trade and Investment, Jumoke Oduwole, says the ministry generated more than $500 million in export revenue in 2025 through industrial development and diversification initiatives. However, details presented to lawmakers raise questions about attribution, scale, and the ministry’s capacity to sustain impact under persistent capital constraints.

    Oduwole made the disclosure on Monday while defending the ministry’s 2026 budget proposal before the Senate Committee on Trade and Investment.

    The minister also claimed that the ministry’s programmes created over 20,000 direct jobs in 2025. No supporting data was provided on the sectors involved, the duration or quality of the jobs, or the methodology used to separate ministry-driven outcomes from broader private sector activity.

    From a trade perspective, Oduwole pointed to a reported 500 per cent increase in traded volumes on the Nigeria Commodity Exchange. While the growth suggests rising activity in structured commodity markets, the ministry did not disclose absolute volume figures, making it difficult to assess whether the increase reflects meaningful market depth or a rebound from a low base.

    She said the ministry advanced plans for a national trade and distribution company to improve commodity aggregation and market access. However, key commercial details, including capital structure, governance, funding sources, and expected timelines, were not outlined, leaving uncertainty around execution and private sector participation.

    On policy delivery, the minister confirmed that the Federal Executive Council approved the National Industrial Policy in November 2025 and that Nigeria launched its first National Intellectual Property Policy. While these approvals expand Nigeria’s policy framework, they add to a growing list of strategies whose effectiveness will depend on implementation capacity rather than regulatory intent.

    Funding constraints dominated the budget defence. Oduwole said the ministry’s 2025 appropriation totalled ₦11.8 billion, largely consumed by personnel and overhead costs. Apart from a ₦3.8 billion capital allocation, she said no capital funds had been released, effectively limiting the ministry’s ability to execute industrial infrastructure, cluster development, or export-support programmes.

    Despite these limitations, the minister disclosed that the ministry exceeded its revenue target by approximately ₦100 million, with full remittance to the Consolidated Revenue Fund. In macro terms, however, the figure remains marginal when set against Nigeria’s industrial financing gap and the scale of the country’s non-oil export ambitions.

    Looking to 2026, Oduwole said the ministry’s priorities align with the Renewed Hope Agenda of Bola Tinubu, the National Development Plan, and existing trade, investment and industrial policy frameworks. She said the emphasis would shift from policy formulation to implementation across priority value chains, industrial clusters, and special economic zones, with a renewed focus on local production and non-oil exports.

    The minister described domestic investors as the primary signal of confidence in the economy, while foreign investors would continue to be targeted through trade missions and investment roadshows. She also announced plans for a National AfCFTA Tour and expanded sub-national engagement to embed trade and industrial outcomes at state level.

    She said these initiatives would be supported by digital investor portals and trade intelligence tools, measures long promised by successive administrations but yet to materially change investor experience.

    Oduwole disclosed that the ministry’s proposed 2026 capital allocation stands at ₦2.72 billion, a level she acknowledged would be insufficient given the ministry’s mandate and execution targets. She urged lawmakers to approve an increase, warning that without improved funding, delivery risks would persist.

    For investors and market operators, the central issue remains whether the ministry can translate policy approvals and headline revenue figures into measurable gains in industrial output, export competitiveness, and market infrastructure , or whether ambition will continue to outpace execution capacity.

  • Africa Making Strides in Regional Trade, Says Nigeria Customs Service

    Africa Making Strides in Regional Trade, Says Nigeria Customs Service

    Abuja – The Nigeria Customs Service (NCS) has highlighted Africa’s growing progress in trade services within the continent, noting improvements in cross-border financial and commercial activities.

    Comptroller-General of the NCS, Bashir Adeniyi, made the remarks on Monday during a dinner organised for participants of the Customs–Partnership for African Cooperation in Trade (C-PACT) conference in Abuja.

    The C-PACT is a collaborative initiative between the NCS and the African Export-Import Bank (Afreximbank), aimed at repositioning African trade. Supported by the World Customs Organisation (WCO), the initiative seeks to establish a transparent and agile customs framework that promotes lawful trade and sustainable economic growth.

    The conference, themed “Breaking Barriers, Building Bridges”, was officially declared open by President Bola Tinubu and will run until Wednesday.

    Adeniyi noted that financial services across Africa were improving, particularly with the launch of the Pan-African Payment and Settlement System (PAPSS) by Afreximbank, which facilitates easier cross-border currency flows.

    “Earlier today, we learned about the fact that our financial services are crossing borders. The entertainment industry is crossing borders. What we now need to do is to ensure that our goods, that we manufacture within our regions, can also cross borders with the same ease,” Adeniyi said.

    He also urged for active engagement of customs administrations in implementing the African Continental Free Trade Area (AfCFTA) agreement and emphasised the importance of cross-country trade facilitation and integration.

    As President of WCO, Adeniyi expressed confidence that the conference would provide a platform for dialogue between customs administrations and private-sector stakeholders, fostering cooperation and advancing practical outcomes for continental trade integration.

    Recent data underline Adeniyi’s optimism. According to Afreximbank’s 2025 African Trade Report, intra-African trade reached US$220.3 billion in 2024, up 12.4% from the previous year, while total African merchandise trade rose by 13.9% to US$1.5 trillion.

    Yet, experts note that Africa still has a US$77 billion gap between current trade and its potential, indicating room for growth, especially in value-added goods.

    The 4th Intra-African Trade Fair (IATF 2025), held in Algiers earlier this year, also highlights the continent’s trade momentum, concluding with US$48.3 billion in investment deals. The fair focused on innovation, value addition, and green industrialisation — aligning with C-PACT’s goal of fostering lawful trade and sustainable growth.

    In West Africa, Nigeria’s intra-African trade surged to US$18.4 billion in 2024, nearly doubling from the previous year, driven by commodities such as refined petroleum and industrial goods.

    Meanwhile, PAPSS is making cross-border payments easier in local currencies, reducing reliance on foreign currencies and lowering transaction costs for businesses.

    In her closing remarks at the dinner, Caroline Niagwan, Deputy Comptroller-General of Customs (Tariff and Trade), described the gathering as a meaningful moment of connection, emphasizing the importance of building trust and understanding to improve trade facilitation.

    “We have come together not just as institutions, but as people committed to improving trade, strengthening cooperation, and ensuring that borders become gateways of opportunity rather than obstacles,” she said.

    Highlights of the dinner included a musical performance by a cultural troupe from Algeria and a spoken-word presentation, providing a relaxed atmosphere for attendees to share experiences and build collaborative relationships.