Processed products will boost Nigeria’s export, create jobs – Adebayo

Processed products will boost Nigeria’s exports and create jobs for the country’s teeming youths Adeniyi Adebayo, minister of Industry, Trade and Investment (FMITI) has said. This means, for instance, adding value to agricultural produces after harvest against the practice of exporting raw materials to industrialised countries.

“Not only do we want to export agricultural products but also we must add value by processing them before we export them to other countries because by adding value we are also employing labor here,” he said.

Adebayo said this at a virtual interactive evening with the Minister of Industry, Trade, and Investment hosted by the Lagos Business School on Thursday themed Nigeria in Challenging Times: The Contributions of the Ministry of Industry Trade and Investment, and Opportunities for Private Sector Participation.

Adebayo explained that the government has tried to boost agriculture which already reflects on the country’s exports especially in commodities like sesame, hibiscus, ginger, cocoa et cetera. However, the adoption of value addition practices will further improve the export earnings and boost the availability of foreign exchange.

“If you export cocoa beans, the amount of money you make is only five percent of the cost of chocolate that is eventually produced from it so why not produce and export the chocolate and make more money from it”

Speaking on port accessibility for manufacturers, the minister noted that regulatory agencies at the ports have reduced significantly when compared to the number five years ago, adding that efforts are still ongoing to reduce the number of agencies at the ports.

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“It is a work in progress and we are looking at the single window facilities for the ports and once we are able to get the E-customs facility in place that will go a long way in reducing the number of agencies physically present at the ports,” he said.

Adebayo added that the rail network will be extended to the port in order to improve the movement of goods into and out of the ports.

Speaking on improved productivity and competitiveness for manufacturers, he said that the federal government is making efforts to boost power availability for manufacturers which is an essential input of the production process.

“We are fighting that the price of gas is reduced to enable manufacturers to be competitive enough to be able to sell their goods especially in the export market because many manufacturing firms provide power for themselves using gas but the price at which gas is sold to manufacturers is higher than the amount sold to power generating companies,” he said.

He added that engagements are ongoing with the ministry of power to ensure that areas with a large concentration of manufacturing firms are prioritized regarding the amount of power that is provided.

He also said that the ministry will also engage Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) in order to advocate for exporters who source foreign exchange at higher cost while being forced to repatriate returns at the official rate.

Adebayo reiterated that the government is intensifying its efforts to grow the economy and improve business activities, as such the FMITI is committed to various initiatives that will diversify the economy, increase its revenue generation and boost the availability of foreign exchange.