Non-oil Exports: FG Collaborates with MAN, NACCIMA, Others on Affordable Freight Charges’ Framework

Non-oil Exports: FG Collaborates with MAN, NACCIMA, Others on Affordable Freight Charges’ Framework

CHIGOZIE AMADI

As part of the federal government’s efforts to promote the competitiveness of Nigerian non-oil exports, the Federal Ministry of Industry, Trade and Investment, along with leading stakeholders in the Nigerian private and public sectors, is collaborating to develop a strategic framework that would make freight charges more affordable for Nigerian commodity exporters.

In his address during the stakeholders’ workshop in Lagos with the theme, “Charting a Course for Competitive Freight Rates: Policy, Infrastructure and Private Sector Led Solutions,” the Permanent Secretary, at the ministry, Ambassador Nura Abba Rimi, said the workshop is a platform to discuss and formulate a strategic framework that would balance the interests of all stakeholders.

Rimi, who was represented by Mr. Abdul Ahmed, said that the framework, “will provide a roadmap to implement key interventions that can reduce freight costs and promote a more competitive and efficient logistics industry. Ultimately, the goal is to foster a logistic environment that is both cost-effective and sustainable, contributing to economic growth, job creation and improved balances.”

According to the Chairman of Manufacturers Association of Nigeria (MAN), Export Group, Mrs. Odiri Erewa-Meggison, the workshop would address one of the most pressing challenges facing Nigeria non-oil export sector.

Erewa-Meggison, who was represented by the Executive Secretary, MAN Export Promotion Group, Dr. Benedict Oriosa, said that “affordable and efficient freight system remains critical to Nigerian economy as it directly impact on the ability of our exporters to compete in regional and global markets.”

She observed, “reality today is that high freight charges continue to erode the competitiveness of Nigerian made goods. It has made it more expensive to do business and inhibits the growth of our non-oil sector.

“By fostering collaboration and aligning our efforts we can develop a strategic framework, export policy reforms and regulatory incentives that will make freight cost lower to ensure that Nigerian exporters are more competitive.”

Speaking in the same vein, the Director General of Nigerian Chamber of Commerce, Industry, Mines and Agriculture, Mr. Olusola Obadimu, said that freight rates play a pivotal role in shaping trade competitiveness, influencing the ease of doing business, and determining the profitability of Nigerian enterprises and their exports products.

Obadimu said: “In Nigeria, logistics and transport costs account for 20 to 30 per cent of total business expenditures, compared to 8.0 to 10 per cent in more advanced economies. These high costs place Nigerian businesses, particularly Micro, Small, and Medium Enterprises (MSMEs) at a disadvantage, limiting their ability to compete effectively within the African Continental Free Trade Area (AfCFTA) and other international markets. Achieving competitive freight rates requires a holistic approach, integrating sound policy frameworks, efficient infrastructure, and proactive private sector participation.”

Similarly, the Deputy Director, Stakeholders Services, Nigeria Shippers’ Council (NSC), Mrs. Hannah Adaba, said that the development of framework for affordable freight charges for non-oil exports is both timely and absolutely critical for the future of Nigeria’s economy.

Adaba said: “We relate with exporters and are deeply aware of the challenges they face. High freight charge is one of the impediments that affect their competitiveness in the global market.  We believe that by focusing on transparent and competitive shipping environment, Nigeria can unlock the immense potential of our non-oil export.”

The Director General of National Agency for Food and Drug Administration (NAFDAC), Professor Mojisola Adeyeye, said that high freight rates high freight rate could have a devastating effect on Nigerian non-oil exports sector by increasing the cost of exporting goods and making them less competitive in the global market.

Adeyeye said:  “We can unlock efficient, reliable and cost efficient freight system that will drive export growth, foster global productivity and enhance the livelihood of our communities.”

Also the Nigeria Export Processing Zones Authority (NEPZA) said that there is urgent need to address the challenge of high freight charges on Nigerian non-oil exports.

It said: “A well-structured freight system will not only be good for cost efficiency for exporters, but will also enhance global marketability of Nigerian made goods, boost foreign revenue earning and create employment opportunities. This is why we must work together to implement sustainable solutions that will lower logistic costs and enhance port efficiency and streamline regulatory processes.”

Representing the Nigeria Customs Services (NCS),” an Assistant Comptroller, Mohammed Haruna, said that Nigeria witnessed significant increase in non-oil export in 2023, 2024 and into this year both in volume of exports and foreign exchange earnings.

Haruna said that the NCS is playing its mandate of facilitation of legitimate trade in line with its comptroller general’s policy trust of consolidating successes that have already been made.