Non-oil sector is vital to generation of foreign exchange, says NEPC boss   

The non-oil sector of the economy  has  a  lot  of  untapped  potentials, which if adequately harnessed will contribute  towards  the aspiration of the  Federal  Government  in  making  Nigeria one of the 20 strongest economies in the world, by the year 2020, says Olusegun Awolowo, executive director/chief executive officer, Nigerian Export Promotion Council (NEPC).

Awolowo in his welcome address at a workshop on “costing and pricing for export”, organized by the Enugu Zonal Office of the Council in Abakiliki, the Ebonyi State capital, affirmed that the non-oil export sector is vital to generation of foreign exchange, income and employment.

Represented at the forum by Esther Ikporah, controller, Enugu zonal office of the Council, Awolowo noted further that export, would enhance domestic competiveness, increase sales and profit volumes of local companies, enhance domestic competitiveness, and help local companies to access global technologies, among other benefits.

Ijeoma Ezeasor, branch consultant, Manufacturers Association of Nigeria, Anambra, Enugu and Ebonyi branch, a resource person at the forum,  explained that costing and pricing is important in export trade, and urged intended exporters to know the actual cost before pricing their product.

She urged exporters and intended exporters to adopt a pricing strategy that can sustain their market share and create new ones, stressing that export trade is dynamic, stating that an exporter need to constantly update his knowledge about the product and market development both at the local and international levels.

Ezeasor emphasized that mistakes in documentation and misunderstandings of trade terms can be costly and advised exporters to quote their prices in U.S. dollar to eliminate the risk of exchange rate fluctuations and problems with currency conversion.

“Pro forma invoice is the preferred method of quoting prices. It is a good practice to include a pro forma invoice with any international quotation, regardless of whether it has been requested.

“Pricing information can be collected in several ways. One source is overseas distributors and agents of similar products of equivalent quality. Also, travelling to the country where your products will be sold provides an excellent opportunity to gather pricing information.

Price according to her is important, but it is not the only selling point. Other competitive factors are needed and they include-utility, quality, service, credit, and consumer taste.

She further advised exporters not to assume that their prices are uncompetitive, noting that their products could still be a bargain in countries with a strong currency, even after adding overseas delivery costs and import duties.

Ezeasor, however, urged exporter and intended exporters to avail themselves with services of the NEPC and other relevant government agencies in case of policy and operational changes.

Nigerian Export Promotion Council is the Federal Government Agency charged with the responsibility of spearheading the development and promotion of the country’s non-oil exports in order to break away from the mono-economic culture of over dependence on crude-oil as the mainstay of the nation’s economy.

 

GODFREY OFURUM