Weak Value Addition and Infrastructure Undermine Nigeria's Non-Oil Export Growth
Industry experts have issued a stark warning that Nigeria risks missing crucial global trade opportunities due to persistent weaknesses in value addition and inadequate infrastructure, despite significant increases in export volumes. This concern was the central focus of the Lagos Chamber of Commerce and Industry (LCCI) Exporters Development Programme, where stakeholders highlighted that the country's export potential remains severely underutilized.
Heavy Reliance on Oil Exports
Nonye Ayeni, Executive Director and CEO of the Nigerian Export Promotion Council (NEPC), represented by South-West Regional Coordinator Benedict Itegbe, emphasized that Nigeria's export structure is overwhelmingly dominated by crude oil and gas. These sectors account for between 80 and 90 percent of total export earnings, leaving the economy vulnerable to oil price volatility, foreign exchange instability, and fiscal uncertainty.
Ayeni noted, however, that non-oil exports have shown promising growth, reaching a record $6.1 billion in 2025. This represents an 11.5 percent increase from $5.46 billion in 2024, with export volumes rising to 8.02 million metric tonnes across 120 countries and 281 product lines.
Challenges in Value Addition
Despite this growth, Ayeni decried that Nigeria continues to export many products, such as cashew and cocoa, in their raw forms. This practice leaves much of the value in the hands of processors in other countries. She explained that while a kilogram of raw cassava earns only a few cents, processed cassava starch can generate three to five times more value. This underscores the urgent need for investments in processing, packaging, branding, and quality assurance to reposition Nigeria as a producer of finished and semi-finished goods for global markets.
Ayeni further highlighted that many small and medium-sized enterprises (SMEs), which are central to export diversification, struggle to meet the volume and consistent quality standards required by international buyers. Initiatives like export clusters and agro-processing centers are being developed to improve scale, standardization, and reduce the cost of value addition. She urged businesses to invest in export readiness and develop clear plans to capitalize on global market opportunities.
Call for Economic Repositioning
LCCI President Leye Kupoluyi stressed that Nigeria's export potential remains under-optimized due to persistent gaps in value addition, quality standards, and access to international markets. He emphasized the need to transition from a supplier of raw commodities to a competitive, value-driven export economy.
Kupoluyi noted that global disruptions, including geopolitical conflicts and supply chain shifts, have altered trade flows and foreign exchange dynamics, making it imperative for Nigeria to seize emerging opportunities. He added that exporting raw agricultural produce limits Nigeria's participation in global value chains, whereas value addition enhances competitiveness and foreign exchange earnings. "Exporting raw cocoa, for instance, yields only a fraction of the value of processed chocolate products," he said, advocating for a shift towards a diversified, export-driven economy supported by improved standards, logistics, and market intelligence.
Export Readiness and Support Systems
Dr. Bamidele Ayemibo, Managing Director of 3T Impex Consulting Limited, pointed out that many Nigerian businesses fail in export markets due to inadequate preparation. Export readiness remains a major challenge, with issues such as delays, poor planning, quality problems, and inefficiencies leading to significant financial losses and market exits.
Ayemibo further noted that exporters often struggle with pricing, logistics, and documentation, with many transactions based on assumptions rather than proper cost analysis. High transport costs and documentation discrepancies continue to affect competitiveness and payment timelines. "Nigeria needs to take exports, especially non-oil exports, more seriously. We're not taking them seriously," he asserted, calling for strengthened support systems and increased export capacity to improve economic outcomes.
Formalization and Capacity Building
Benedict Itegbe, NEPC South-West Regional Coordinator, emphasized the importance of export readiness at the planning stage. Businesses must build capacity to manage risks and sustain operations, with data-driven decisions being critical for identifying viable products and markets. He added that formalizing export operations enables access to incentives, training, and institutional support while reducing risks.
Itegbe stated that the council continues to support exporters through capacity-building and advisory services, encouraging a shift from commodity exports to value-added products. Sada Ladan-Baki, Chair of the LCCI Export Group, noted that the programme aims to help businesses transition from local production to export-oriented operations, though challenges like access to finance, logistics constraints, and trade barriers persist.
Overcoming Trade Barriers
Ladan-Baki highlighted difficulties in regional trade, including non-tariff barriers and multiple checkpoints within Africa. He stressed the need for greater compliance with regulatory standards and increased formalization to improve competitiveness and ease cross-border trade. Olubunmi Osuntuyi, Secretary General of the International Chamber of Commerce Nigeria (ICCN), pointed out that many Nigerian businesses underestimate the requirements for successful market entry.
Osuntuyi identified three consistent issues: compliance and standards, logistics and trade facilitation, and payment security and trust. She advised that businesses must structure transactions properly using recognized trade instruments and contracts to mitigate risks like currency volatility and payment defaults. "African businesses must intentionally trade with African buyers," she said, listing four critical elements for unlocking export opportunities: market access, export competitiveness, industry capacity building, and firm policy support.
Policy and Manufacturing Support
Oluchi Odimuko, Assistant Director of Sectoral and Regulatory Affairs at the Manufacturers Association of Nigeria (MAN), discussed how businesses can move from talk to tangible actions. She listed numerous barriers to local manufacturing that affect trade and urged Nigeria to better leverage trade agreements like the African Continental Free Trade Agreement (AfCFTA) and the ECOWAS Trade Liberalisation Scheme (ETLS).
To build export competitiveness, Odimuko recommended that Nigerian manufacturers embrace value differentiation, ensure proper trade documentation, and build industrial capacity. She called on governments at all levels to ensure policy consistency, provide export incentives, improve foreign exchange access, and streamline regulations.
Step-by-Step Export Guidance
Officials from the National Agency for Food and Drug Administration Control (NAFDAC), NEPC, and the Standards Organisation of Nigeria (SON) provided detailed guidance on exporting. They covered manufacturing for export, identifying target markets, avoiding common mistakes, and properly documenting and coding export products. Their goal is to triple export numbers over the next 12 months, remove obstacles, and bridge import gaps as much as possible.
