My Blog

Tag: Non-oil exports

  • 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.

  • The Imperative of a Sustainable Shea Aggregation System in Nigeria

    The Imperative of a Sustainable Shea Aggregation System in Nigeria

    A Strategic Pathway to Revitalising the Shea Sector

    By:

    Chris Echikwu

    Nigeria sits atop the world’s Shea belt, producing nearly half of the global output. Yet, despite this natural advantage, the country earns little from the multi-billion-dollar global Shea industry. Every year, millions of rural women across Nigeria’s Middle Belt and northern states gather tonnes of Shea nuts — only for most of it to be exported raw.

    The paradox is painful but clear: Nigeria is rich in Shea, yet poor in Shea wealth.

    Industry experts say the problem isn’t production — it’s structure. The Shea sector remains informal, uncoordinated, and largely unregulated. Without organisation, the country’s Shea economy continues to bleed value that could have transformed rural livelihoods and boosted non-oil exports.

    An Economy Lost to Fragmentation

    Across Nigeria’s Shea-producing communities, rural women collect nuts individually, selling them to itinerant traders who dictate prices. This opaque system has produced a long list of setbacks — inconsistent quality, high contamination, lack of grading, and a complete absence of reliable production data.

    The consequences ripple across the value chain: falling prices discourage processing investments, factories operate below capacity, and rural incomes stagnate. What should be a thriving export sector remains stuck in a cycle of poverty and inefficiency.

    “Nigeria’s problem is not a lack of Shea — it’s a lack of structure,” says industry analyst and retired Nigeria Commodity Exchange Director, Mr. Chris Echikwu.

    Aggregation as the Turning Point

    The game changer, Echikwu argues, lies in building an organised Shea nut aggregation system.

    Aggregation is more than logistics — it’s the backbone of a sustainable Shea economy. Under such a framework, producers would form Village Shea Producer Groups, linked to Primary Collection Points for grading and controlled intake. These would feed into Secondary Aggregation Centres for bulk storage, logistics, and quality control.

    Licensed buyers would operate transparently under regulatory oversight. Digital traceability platforms and warehouse receipt systems would ensure accountability, price stability, and access to finance.

    This model aligns incentives across the value chain while protecting the most vulnerable — the rural women collectors.

    Empowering Women, Strengthening Communities

    Over 80 percent of Nigeria’s Shea collectors are women. A functioning aggregation framework is therefore also a gender empowerment policy.

    “When women are organised into cooperatives with transparent pricing, quality training, and access to finance, they shift from being invisible collectors to recognised economic actors,” Echikwu notes.

    Structured aggregation allows rural women to enjoy predictable incomes, gain credit access, and take leadership roles within cooperatives — combining gender inclusion with export competitiveness.

    NASPAN: The Institutional Backbone

    For the vision to succeed, institutional coordination is essential. Echikwu highlights the National Association of Shea Products of Nigeria (NASPAN) as the central pillar for reform.

    NASPAN’s mandate, he suggests, should include policy leadership, buyer licensing, registry management, industry dialogue, and donor coordination. Only a nationally empowered body can anchor reforms beyond the cycle of changing administrations and regional politics.

    Government’s Role and Coordination

    The Federal Government already recognises Shea as a strategic export crop, but acknowledgment alone is not enough. This to call attention to a tighter coordination among key agencies — including the Federal Ministry of Agriculture and Food Security, the Federal Ministry of Industry, Trade and Investment, RMRDC, NEPC, SON, NAFDAC, and the State Ministries of Agriculture.

    “Without government ownership, no national aggregation system can be sustained,” he warns.

    Why Donor Support Matters

    Transforming the Shea sector requires more than good policy — it needs patient capital and technical assistance. Development partners such as GIZ, FAO, UNDP, ITC, IFAD, and the Global Shea Alliance (GSA) are already active in parts of West Africa. Their support will be critical in financing pilot aggregation centres, building digital traceability platforms, training producer cooperatives, and connecting Nigerian producers to international markets.

    Unlocking Nigeria’s Shea Potential

    If Nigeria succeeds in structuring its Shea value chain, the rewards could be enormous:

    • Rural incomes could grow by up to 50 percent;
    • New processing investments would emerge;
    • Export earnings could surpass ₦500 billion annually; and
    • Employment would expand across rural communities.

    The belief is that this is Nigeria’s opportunity to dominate the African Shea market — not only in production, but in value creation.

    Conclusion

    The Shea economy cannot thrive on informality. Nigeria must choose: remain a raw material supplier, or become a value leader.

    A sustainable aggregation mechanism is not optional — it is imperative.

    Chris Echikwu is a retired Director from the Nigeria Commodity Exchange, Abuja.