FG moves to cut freight costs for non-oil exports, engages stakeholders

The Federal Government has reiterated its commitment to boosting Nigeria’s non-oil exports by addressing the high cost of freight charges, which has been a major challenge for exporters.

Nura Abba Rimi, Permanent Secretary Federal Ministry of Industry, Trade and Investment, speaking at a one-day stakeholders’ forum held in Abuja, highlighted the government’s ongoing efforts to promote non-oil exports and reduce the heavy reliance on crude oil revenues.

The Permanent Secretary who was represented by Hajiya Hajara Usman, Director Commodities and Export Department, noted that non-oil commodities, including agricultural products, manufactured goods, and solid minerals, are crucial to Nigeria’s long-term economic sustainability.

However, he acknowledged that high freight costs, driven by fuel price volatility, poor infrastructure, and supply chain inefficiencies, have significantly hampered the competitiveness of Nigerian exporters in the global market.

“The Federal Government has introduced several initiatives, such as the Export Development Fund and the revitalization of the Export Expansion Grant (EEG), to encourage the export of non-oil commodities. However, rising freight costs have continued to erode profit margins, reduce export volumes, and limit market access, especially for small and medium-sized enterprises (SMEs) which represent the backbone of our economy. This situation necessitates an urgent solution, one that ensures fair and affordable freight rates for non-oil commodities.

He added that for many countries, including Nigeria, non-oil exports have become a primary source of revenue, job creation, and foreign exchange earnings as Non-oil commodities, ranging from agricultural products, manufactured goods and solid minerals products, are critical to the long-term sustainability of the economy.

“However, the logistics and transportation costs associated with exporting these commodities to international markets have become a significant challenge, often acting as a barrier to growth and limiting the potential for international trade and competitiveness,” Rimi stated

The forum, themed “Charting a Course for Competitive Freight Rates: Policy, Infrastructure, and Private Sector-Led Solutions,” brought together key stakeholders, including policymakers, logistics companies, exporters, and industry experts, to develop a strategic framework for ensuring fair and affordable freight charges for non-oil commodities.

Rimi said that the forum provided a platform for open dialogue on policies and interventions that can drive down freight charges and improve logistics efficiency. He encouraged participants to explore solutions such as investing in critical infrastructure, fostering private-sector partnerships, and promoting innovation in transportation and supply chain management.

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He urged all participants to actively contribute their expertise and insights, emphasizing that the outcome of the forum would serve as a roadmap for sustainable solutions in the sector.

“This engagement is a critical step toward ensuring that our exporters can compete on an equal footing in international trade. We must work together to implement policies that will not only lower freight costs but also promote economic growth, job creation, and improved trade balance,” he added.

Stakeholders at the meeting emphasised the need for coordinated efforts between the government and the private sector to create a cost-effective logistics framework that will enhance Nigeria’s export competitiveness.

Discussions also focused on the importance of reducing bureaucratic bottlenecks, improving port efficiency, and leveraging technology to optimize supply chain operations.