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Food sub-sector dominates Nigeria’s $3bn non-oil exports (Business Day, August 18, 2014)

Food sub-sector dominates Nigeria’s $3bn non-oil exports (Business Day, August 18, 2014)

The food and allied products sub-sector dominated the $2.97 billion Nigeria’s non-oil exports in 2013, BusinessDay research has shown.

“Cocoa and cocoa preparations have continued to dominate the top 10 products exported from Nigeria to different parts of the world,” said the Nigerian Export Promotion Council (NEPC), headed by Olusegun Awolowo, in a recent release to BusinessDay, during the interactive session between the NEPC and the Manufacturers Association of Nigeria Export Promotion Group (MANEG).

Of the total non-oil exports within the year, earnings from cocoa and its preparations amounted to $758.64 million, thus occupying 26 percent of the total, data from the NEPC show.

The data further revealed the pack to include sheep, goat skin and leather, sesame seeds, rubber, tobacco products and milk products. Other non-oil product exports within the period included cashew nuts and edible nuts, prawn, shrimps, fish and crustaceans, tobacco products, noodles and biscuits, milk products, beverages, tomato paste, fruit juice, among others.

A new Gross Domestic Product (GDP) series released recently by the National Bureau of Statistics (NBS) shows an increase in the manufacturing sector’s GDP contribution to 9 percent, from 6.81 percent reported earlier in April, implying that the manufacturing sector now contributes $45.9 billion (N7.67 trillion) to the country’s $510 billion economy. The new series also reported the manufacturing sector’s exceptional average growth rate of 17.69 percent between 2010 and 2013. In 2013 alone, manufacturing recorded substantial growth of 22 percent, comparing positively with 14 percent reported in 2012.

It was gathered that the food, beverages and tobacco sub-sector grew to 12 percent in 2013, as against 7 percent recorded in 2012.
“We believe Nigeria’s large population of upwardly mobile consumers, particularly in the South-West, coupled with investments in power, implies the strong growth of manufacturers, including food producers and breweries, is sustainable,” said Renaissance Capital (RenCap) in its recent report.

Key players in this industry include Flour Mills of Nigeria, Dangote Group, Honeywell, Cadbury, Unilever, Nestle, Nigerian Breweries, Guinness, among others.

Data from the Manufacturers Association of Nigeria (MAN) show production output in the food, beverage and tobacco sub-sector rose to N83.72 billion in the second half of 2013 (H2 2013), from N64.4 billion reported in the first half of the year (H1 2013). Capacity utilisation in the sector appreciated to 61.5 percent in H2 2013, from 53.5 percent reported in H1 2013. The sector also recorded an appreciable increase in local content, rising to 79.34 percent in H2 2013, from 68.99 percent reported in H1 2013.

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