NEPC Targets $30bn Untapped Non-Oil Exports Revenue – Business Post Nigeria

By Adedapo Adesanya
The Nigeria Export Promotion Council (NEPC) is targeting to generate a minimum of $30 billion from non-oil exports annually as revenue.
This was disclosed by NEPC Trade Promotion Advisor, Mr Bello Noma, in Jos, Plateau State, noting that Nigeria has abundant non-oil resources in each state of the federation waiting to be harnessed.
The trade promotion advisor said that the NEPC, under the leadership of Mr Ezra Yakusak, had developed a policy plan to boost the non-oil sector.
He added that the plan was to ensure that in the event that the price of crude oil crashed, the country would have shock absorbers.
“We have a plan known as the zero oil plan, and we have identified 11 strategic products that will supply Nigeria with sufficient foreign exchange, known as 11 products.
“We have category A of the 11 products as well as category B of the 11 products. These products will be able to supply Nigeria with $30 billion every year when we scale up production,” he said.
He pointed out that each state of the federation “has a unique product under NEPC’s one state, one product policy to focus on”.
The trade promotion advisor said that when they upscaled production, the nation would be able to realise one billion dollars in each state of the federation.
“When you look at the statistics of non-oil export over the last four years, you can see that the data keeps rising.
“Last year, we recorded $3.4 billion in the total value of non-oil export, but because of the effort put in place by our chief executive, you can see that from January to September, we have already recorded more than $3.5 billion.
“We still have three months to go, which means is an indication that yes, the effort being put in place by the council is beginning to yield results,” he added.
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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.
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By Dipo Olowookere
The sale of treasury bills conducted by the Central Bank of Nigeria (CBN) on Wednesday, November 23, 2022, was oversubscribed by investors, thanks to the one-year instrument.
According to details of the exercise obtained by Business Post, the 364-day bill was the most attractive to traders during the session.
The central bank went to the market with N139.9 billion worth of the tenor but received subscriptions valued at N345.2 billion as a result of its attractive rate, which is closer to the benchmark interest rate.
It was observed that the bank allotted N199.9 billion worth of the 12-month instrument at the close of business, with the stop rate clearing at 14.84 per cent, 0.85 per cent higher than the 13.99 per cent offered in the preceding exercise, which was two weeks ago.
Several analysts had predicted that the CBN would increase the stop rate of T-bills yesterday as a result of the raising of the Monetary Policy Rate (MPR) by 100 basis points to 16.5 per cent and inflation hitting 21.09 per cent in October 2022, according to the National Bureau of Statistics (NBS).
A look at the other two maturities offered for sale during the primary market auction (PMA) on Wednesday showed that the stop rates were unchanged.
It was also observed that the tenors were undersubscribed by investors, ostensibly due to the low stop rates of the bills.
The apex bank auctioned N32.3 billion worth of the 91-day instrument yesterday but received bids valued at N12.0 billion, with N11.7 billion sold at 6.50 per cent.
Also, the central bank offered for sale N41.3 billion worth of the 182-day bill to traders during the session and got subscriptions worth N3.1 billion, with N1.8 billion allotted at 8.05 per cent.
By Adedapo Adesanya
Nigeria’s economic growth slowed in the third quarter of 2022, according to data released by the National Bureau of Statistics (NBS) on Thursday.
The NBS said between July and September 2022, the gross domestic product (GDP) of the country grew by 2.25 per cent year-on-year, the slowest growth since the COVID-19 pandemic.
According to the NBS, the slow growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities.
The Q3 2022 growth rate decreased by 1.78 per cent points from the 4.03 per cent growth rate recorded in Q3 2021 and 1.29 per cent points relative to 3.54 per cent in Q2 2022.
The oil sector declined by 22.67 per cent (year-on-year) as of Q3 2022, indicating a decrease of 11.94 per cent points relative to the rate recorded in the corresponding quarter of 2021.
On the other hand, the non-oil sector grew by 4.27 per cent in real terms during the reference quarter (Q3 2022). This rate was lower by 1.18 per cent points compared to the rate recorded same quarter of 2021 and 0.50 per cent points lower than the second quarter of 2022.
Growth in the non-oil sector was driven mainly by Information and Communication (Telecommunication), Trade, Transportation (Road Transport), Financial and Insurance (Financial Institutions), Agriculture (Crop Production). and Real Estate, accounting for positive GDP growth.
In terms of contribution to GDP, the non-oil sector contributed 94.34 per cent to the total GDP, an increase from 93.67 per cent recorded in the previous sector, while the oil sector contributed 5.66 per cent to the aggregate real GDP for the period.
By Adedapo Adesanya
Nigerian startup, Pivo, which helps freight carriers get paid faster by providing banking services and digital invoicing tools that track payments, has closed a $2 million seed round.
This is in addition to a $550,000 pre-seed round it raised earlier this year.
The startup, which was part of Y Combinator’s S22 batch, counts Precursor Ventures, Vested World, Y Combinator, FoundersX and Mercy Corp Ventures as its investors in this round.
In a statement, the company said it intends to use the financing to upgrade existing products, build new ones, hire talent and expand outside of Lagos, its first market and other African countries, particularly in East Africa.
The firm, founded by Mrs Nkiru Amadi-Emina and Mrs Ijeoma Akwiwu in July 2021, provides financial services — credit, payments and expense management — to SME vendors within large manufacturing supply chains.
Pivo leverages manufacturing supply chain relationships and deploys financial services to the SMEs within them, mostly truckers in this instance.
The credit play of its platform, Pivo Capital, serves as an early payment alternative for truckers and allows logistics companies to deal with any upfront costs — such as diesel and driver’s allowance — typically incurred during operations. Pivo Business, its payments reconciliation arm, helps these small businesses to facilitate payments via peer-to-peer transfers and track payments with debit cards with spend controls.
“After our pre-seed raise of $550,000 early in Q1 of this year, we launched a new product, Pivo Business, with features that supply chain SMEs can use to achieve better cash flow,” the company said.
The transaction volume of Pivo Business accounts grew by over 400% between April and September. With this funding, we intend to build on existing products and develop solutions for supply chain anchors.”
The freight carrier–focused digital bank currently serves about 500 SMEs as direct customers and makes revenue by charging interest on capital and fees on payments processed.
Mrs Amadi-Emina said Pivo Capital has disbursed over $3 million to SMEs and currently records a 98 per cent repayment rate while transaction volume on Pivo Business grew over 400 per cent between April and September this year. The startup has registered a total volume of $4.7 million from July to date.
On his part, Mr Daniel Block, Investment Principal at Mercy Corps Ventures, alluded to that experience when commenting on their reason for investing in the startup.
“When we initially invested last year, we believed that the founders’ deep logistics industry expertise and commitment to unattended supply chain SMEs would enable Pivo to rapidly carve out a deep moat in the competitive fintech lending space. As Pivo launches additional products to graduate from a pure fintech lender to a full-fledged financial services platform, we are excited to see the company deliver a full suite of financial services specifically designed for the needs of the unattended supply-chain sector SMEs they serve.”
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