…Creates export cluster for south-south
Size of the export business in the south-south is set to double. This is because the Nigerian Export Promotion Council (NEPC) in the zone says it is determined to create a 1000-member export cooperative cluster in the region.
Benedict Itegbe, new zonal coordinator in Port Harcourt, disclosed the strategies and details on Thursday, July 18, 2024, at a one-day symposium at the Aldgate Congress Hotel in Port Harcourt.
Speaking on the need for system, he said the need to double the size of export has become urgent.
Accordingg to him, the system would be hinged on export cooperatives. It is about bringing them together and managing them to do things strategically.
“We need more people in value addition, not just exporting raw materials. That’s where the game or gain is. For instance; if chocolate market is about $100m, cocoa seed market will be $30m. We want to create what will work in Rivers State,” he said.
He encouraged cooperators to seek ways of exporting processed foods because of the need to generate foreign exchange, even to run their businesses.
He urged them to ignore the debate about export of food versus national food security matters. “There is no competition there. There are some agro products that are not consumed much in Nigeria such as cocoa and sesame seed. There is so much demand for foreign exchange that whatever export than can fetch it, even for a business entity, would be highly cherished.”
For this reason, he harped much on what he called ‘Operation Double Your Export.’ He said that there was need to develop a regional strategy.
“You are importing equipment and raw materials with forex and you need to export to earn it. We need a strategy that creates balance (between need to earn forex and issues of national food security),” he said.
Itegbe further said that some countries do not have arable land the size of some states in Nigeria but that one of them alone exports $500bn worth of products. This is even bigger than Nigeria’s Gross Domestic Product (GDP) size, whereas Nigeria with all the fertile land is struggling.
On this score, he dwelt on the need for export cluster system. “We want it to have a professional unit to serve all. The person chosen to man it will negotiate, engage with Corporate Affairs Commission (CAC) for members, lead discussion on export businesses, etc. He can be trained in digital marketing and critical thinking,” he said.
He noted areas of huge advantage for Rivers State and observed that the blue economy sector seemed to be underutilised. “This is the area of advantage for Rivers State and most of the south-south except Edo. Wealth comes from the sea: fishing, ports, oil/gas activities, shipping, etc.”
He pointed at crops that the south-south can begin to focus on that were believed not to grow in the area: ginger, carrot, cucumber, sesame seed. Others already known in the region include cassava, yams, oil palm, cocoa, etc. Some outsiders are eyeing the forests of the south-south. He said there is interest everywhere.
He said NEPC is to do research for the cluster. Many participants agreed that Onne port is busy but observed that it has very high charges, twice what Lagos charges.
The zonal coordinator said no more working in silos. He said should the zone build the targeted 1000-member cluster, they can be a voice in the zone and can influence policy. He said the members will attract national and international support. “We will have partnerships with organisations such as PHCCIMA, Shippers Council, NYSC, etc. We will infuse research, IT, and connection strategy.
“There must be strategic value proposition for every cooperative that wants to be taken seriously. If you are in a wrong cooperative, you will not succeed.
“Learning cooperatives exist too. Members devote their time to study the sector and act in support of each other. This is needed in the emerging sectors of the economy such as IT, digital studies, coding, content creation, digital marketing, etc
“Dollar is scarce now, so digital marketing has opened ways for small businesses. There is virtual export clusters with little capital, little experience. It’s also a learning tool.”
Itegbe said there is need to have a person to run the technical services especially a lawyer. “There are opportunities to learn such as how to find buyer, how to fix prices, processing of documents, etc. Ignorance is the problem. He can learn how to access loans and show this to the members.”
Speaking on: ‘Strengthening Cooperative Societies/Export Cluster and SMEs for Enhanced Non-Oil Export as Part of Export Strategy,’ Itegbe, an architect, said it was a pivotal moment to unveil the regional strategy aimed at fostering the agricultural, blue, green, and orange economies across the region.
He said NEPC has created a strategy board that would empower stakeholders with real-time insights on commitments, implementation, and performance benchmarking/peer review; ultimately driving collective efforts towards a more competitive, transparent and sustainable export landscape.
He mentioned existing programmes and initiatives of NEPC such as the Domestic Export Warehouse initiative, the OSOP (One-state-one-product) policy, and public private partnerships for establishment of Common Facility Centers and Quality Assurance Centers. “These infrastructures are pivotal in ensuring that our exports meet global standards, thereby enhancing our market access and competitiveness on the international stage.”
Harping on strategic partnerships across board that were helping export business, Itegbe said the NEPC looked forward to the future by introducing a unique framework for export clusters, encompassing a comprehensive policy framework, an information window for market intelligence, accelerated exports roadmap, digital engagement platforms, robust aggregation mechanisms, and continuous capacity building.
“Let all groups actively engage, collaborate, and innovate throughout this conference. Together, let us seize the opportunities ahead, driving forward our vision for a prosperous export sector in Rivers State and beyond.”
One of the most sensitive strategies he introduced is the creation of common facilities so that all cooperatives can access production centres at minimum cost and access regulations easily.
To prepare ground, NEPC brought the Rivers State Cooperative department, the National Agency for Food and Drugs Administration and Control (NAFDAC), and other experts from sensitive organisations to enlighten the cooperatives members on how common facilities and export cluster system would operate.
The head of cooperatives in the Rivers State Ministry of Commerce & Industry, Elizabeth Chidi-Wike, took the participants through the origin, roles, types, benefits, functions, and system of cooperatives. She revealed why most cooperative societies in the region do not function well, and showed the best systems to succeed.
In her paper; ‘The Role of Cooperatives in Increasing Export opportunities in Rivers State,’ Chidi-Wike showed cooperatives were the bedrock of the small and medium scale business sector and very important in the economy of any state or country.
She said: “They gain bargaining power by buying in bulk and thus bring down prices. They also cut down the influence of middle men in the distribution chain. They expand market opportunity, improve quality of products, and can engage manufacturers directly.”
On why Nigerians struggle with exportation of goods, the expert said they operate mostly in small units. “There is need to form cooperatives in each product area to create impact. They can also save funds and create savings culture and also create access to low-interest loans for members.
“They can create product promotion as a group and operate warehouses and other facilities such as land, boreholes, etc. Cooperatives will overall create profit maximisation and eliminate competition against each other.”
She however noted the major problem: “Paper cooperatives are plenty in the south-south. They are mostly politicians and their followers. They are often the ones to hear that government loans or grants are coming to cooperatives, and they will rush to register cooperatives without having any business at hand let alone have any product at hand. If they access such loans, they flee.”
She however, said if any person is in serious business, government will intervene and the sky will be the limit. She also advised governments to use the Cooperatives Unit of the Government to channel any funding to cooperatives because they are the ones that know which cooperative body is functional or not.
Strong voice at the symposium came from the National Agency for Food and Drugs Administration and Control (NAFDAC), Oligbu Chukwuma, a pharmacist, who was represented by another pharmacist, Emmanuel Onogwu, gave the various steps needed to acquire NAFDAC certification which he said was highly needed to export most items.
He said it was important to be sure of what anybody was trying to export because of rejection syndrome. He however revealed that most conditions have been made simpler for SMEs and that getting certificate could take only one month for micro products.
He stated that for anybody to carry out export activities in most products, they would need NAFDAC registration. “So, try and learn the processes especially on micro products. Shared facilities offer reduced costs and conditionalities.”
He said there was need to promote incubation centre system in Rivers State, though he said the private people have about two facilities. “Some states have them in different product categories.”
He mentioned benefits of shared facilities to include access to equipment, cost savings, compliance/licensing, networking/collaborations, support services, flexible scheduling, and scalability.
He made it clear that those who fulfil the requirements can get their certificates in one-month micro products while others have up to 90 days to do so.
In his intervention, Ofon Udofia, the executive secretary of the Institute of Export Operations and Management (IEOM), pointed at lack of training and lack of appetite in the region unlike in Lagos where he said people must be well trained before getting licenses to run cooperatives. He lamented over what he called dormancy level of cooperative societies in the region.
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