Nigeria’s local industries are increasingly making significant contributions to the global market, leveraging the Made-in-Nigeria initiative to drive export growth and diversify the country’s economy.
With the government’s focus on enhancing non-oil exports through initiatives like the Export Expansion Facility Programme (EEFP), industries ranging from agro-processing to manufacturing are gaining momentum.
Agro-Processing: Leading the Charge
The agro-processing sector is the backbone of Nigeria’s non-oil exports, contributing over 75 per cent of non-oil foreign exchange earnings.
Companies like Niji Foods and Pride of Africa have capitalised on Nigeria’s abundant agricultural resources. Niji Foods processes cassava into garri, flour, and starch, with 30 per cent of its products exported to Europe, the United States of America, and parts of Asia.
In 2023, Nigeria exported 3.5 million metric tonnes of processed cassava products, generating an estimated $600 million in revenue, according to data from the Nigeria Export Promotion Council (NEPC).
Olam International and Dangote Group have invested in value-added processing, particularly in rice milling. Nigeria, once a net importer of rice, now boasts 3.7 million metric tonnes of local rice production annually, of which 5 per cent is exported to neighbouring West African countries, contributing over $450 million to the economy.
Shea Butter: A Nigerian Beauty Export
Nigeria is the world’s largest producer of shea butter, responsible for about 60 per cent of global shea butter production.
Nigerian brands like R & R Luxury and Banga Shea have turned this natural product into a high-demand beauty item in Europe and North America. With the global shea butter market projected to reach $3.8 billion by 2027, Nigeria’s share is steadily increasing.
Exports of shea butter products grew by 12 per cent in 2022, driven by international demand for natural skincare products.
Read also: Nigeria targets $30bn annual export earnings by 2025 on made in Nigeria goods
Construction Materials: Expanding Across Borders
The construction materials industry, led by companies like Dangote Cement, has expanded far beyond Nigeria’s borders.
Dangote Cement operates in 10 African countries and exports 2 million metric tons annually, with substantial demand in places like Ethiopia, Senegal, and Zambia. In 2023, Nigeria’s cement exports contributed over $800 million to the country’s foreign exchange earnings, underscoring the importance of local manufacturing for export markets.
Textiles and Fashion: Resurgence of Made-in-Nigeria Fabrics
Nigeria’s textile industry, once decimated by imports, is gradually bouncing back with the export of unique fabrics like Aso-Oke and Ankara. Lagos Leather Fair and Nike Art Gallery are pushing leather goods and fabrics into international markets, with exports of Nigerian-made textiles rising by 8 per cent year-on-year, generating $200 million in 2022.
Local leather processing, particularly for shoes and bags, is gaining traction in international fashion capitals such as Milan and Paris. The Leather Export Promotion Council reports that Nigerian leather goods now account for 5 per cent of total African leather exports, with key export destinations being Europe and the Middle East.
FMCG and Packaged Goods: Building Brands for Export
Nigeria’s fast-moving consumer goods (FMCG) sector is also finding success in export markets. Companies like Nestlé Nigeria and PZ Cussons have expanded local production of goods such as seasoning cubes and powdered milk, exporting to countries like Ghana and Sierra Leone.
The FMCG sector contributed $1.2 billion to Nigeria’s export revenue in 2023, with 50,000 tons of locally manufactured goods leaving Nigeria’s shores annually.
These industries are a testament to Nigeria’s growing capability to manufacture and export world-class products, driving economic growth and reducing reliance on oil exports.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
