South-south business owners told to explore crushed palm kernel export

…As NEPC creates export cluster in Port Harcourt

Business owners in the south-south geopolitical zone have been urged to try their hands on export, especially crushed palm kernels. This is as the Nigerian Export Promotion Council (NEPC) has announced the setting up of an export cluster in Port Harcourt to handhold budding exporters from zero to export.

Those willing to try their hands have been told that palm kernels have three huge export products on the value chain: crushed shells, the kernels that can be turned into cakes for export and the processed kernels.

The revelation emerged at a one-day training in Port Harcourt for new exporters and old ones wishing to boost their skills and knowledge base.

Ofon Udofia, executive secretary, Institute of Export Operations and Management (IEOM), in his presentation at the training, called on SMEs to focus on their area of comparative advantage. That was when he cited the example of the crushing of palm kernel as a current lucrative market in the export sector.

He also urged willing exporters to monitor the trends to find out areas of their advantages. He spoke on the topic; “Market Trend Opportunities for SME Exporters”. He explained the role of global market trends in harnessing the vast export potentials in Nigeria.

Udofia explained that SME exporters must not always be producers of the goods before they can engage in export, but can engage in partnership with producers to get the job done.

He identified some of the ways to get it done to include sourcing the products from local manufacturers which usually comes at an affordable rate, processing and packaging to meet the required specification and deliver to the required destination. He said this method offers more profit and could be a good starting point for SMEs who are yet to acquire the required facility for product manufacturing.

Udofia warned SME exporters against venturing into contracts to supply goods without proper documentation, saying it is often disastrous. He urged the participants to know the product specification through a proper laboratory analysis so as not to record product rejection at exit or entry points between countries. He said this could result in untold losses especially at the fragile stage of the business when trust is most needed.

Another important issue raised by the IEOM executive was that of product costing, which he said was another important aspect of export business that must be mastered by those new to the business so as to maximize profit.

He also made a case for integrity in business which he said is the livewire of export; and a key to gaining trust, which he said was a requirement for sustainable business relationship.

Read also: Nigeria can beat the world in palm kernel export – NEPC boss to South-South exporters

The NEPC had mounted the training where they called for effective compliance as panacea for driving export growth and maximizing opportunities in global market

NEPC stressed the need for exporters in Rivers State to leverage on existing opportunities to boost the non-oil sector in the quest to diversify the nation’s economy and attract more foreign exchange into the local market.

Benedict Itegbe, regional coordinator, NEPC, South -South regional office in Port Harcourt, stated this during a one-day symposium on “Driving Export Growth: Maximizing Opportunities in the Global Market’, at the Aldgate Congress Hotel, Sani Abacha Road in the GRA Phase 3, Port Harcourt.

He outlined some of the programmes initiated by NEPC in the zone to grow the non-oil sector to include the formation of an export cluster and a business development unit, all to assist those that are new to export business. It is also for the already established exporters in the South-South zone to grow their businesses and achieve sustainability as well as increase participation in the export sector.

These, he said, will assist the region which is now over-depending on oil and gas, to become a force in the non-oil sector.

The business development unit made up of seasoned professionals in the sector, according to him, is charged with the responsibility to design business models, guide the small and medium enterprises (SMEs) through the various processes and assist them to grow their businesses using the best models available to them.

This, according to him, strengthens the community in the face of current economic challenges. It will help in reversing the current downward trend of the country’s gross domestic product (GDP), and create a thriving sector for the growth of the nation’s economy.

In his presentation titled “Digital Tools for Market Research”, the zonal coordinator called for a culture of research, using the relevant search engine to identify available opportunities, market, and product processing techniques, all to target market needs in enhancing a satisfactory service delivery which helps build trust and strong business relationship.

Itegbe also stated that the use of technology or automation has eradicated all issues of delay in documentation which previously accounted for most of the delays at the various ports in the country thereby resulting in payment of demurrage, damage to product, and a loss of capital invested in deal. The faster pace, he said, is a good development helping to accelerate export and quicken export business in Nigeria.

The other presentation focused on pre-shipment inspection certifications, procedures and documentation. It was presented by Jerome Nsikak, representative of Neroli Technologies Limited, who stressed the need for quality, accuracy in quantity, and price competitiveness, as a panacea for successful exporting exercise especially for the SMEs.

He revealed that a lot of buyers abroad take advantage of any lapses in product specification to the detriment of exporters in Nigeria and as such, create losses to the nation’s economy, hence the need for strict adherence to the stated specification. One the requirement in terms of documentation, he stated, is registration with the Nigeria Export Promotion Council (NEPC)

Other agencies and organizations of government who play critical roles to ensure that products from Nigeria meet global specifications include the Standard Organization of Nigeria (SON), National Agency for Food, Drugs, and Control (NAFDAC), Custom, Quarantine Service, Ministry of Mines and Steel Development, among others.

Also, the symposium acquainted participants with relevant international trade policies, guidelines, and opportunities to position them in handling cross-border trade relations in line with global best practices.

The highlight was a presentation of Members of the Business Development Unit by the South-South Regional Coordinator.