DIVERSIFICATION: Manufactured goods export up 46.8% to N1.1trn in H1’25

By Yinka Kolawole

The determination to diversify Nigeria’s export portfolio seems to beryllium yielding results arsenic the worth of manufactured goods exported from the state successful the archetypal fractional of 2025 (H1’25) surged by 46.76 percent to N1.1 trillion from N749.5 cardinal successful the corresponding play of the erstwhile twelvemonth (H1’24).

Analysis of reports of Foreign Trade successful Goods by the National Bureau of Statistics (NBS) implicit the past 5 years shows a rising inclination from 2021. 

But determination has been a important leap from 2023, coinciding with the Naira depreciation occasioned by the unification of the overseas speech (forex) marketplace by the Central Bank of Nigeria (CBN) successful June 2023. 

A breakdown of disposable information from NBS revealed that manufactured goods exports stood astatine N304.09 cardinal successful H1’21; N338.61 cardinal successful H1’22; N343.29 cardinal successful H1’23; jumped to N749.52 cardinal successful H1’24; and N1.10 trillion successful H1’25.

Further investigation indicates that the N1.1 trillion worthy of manufactured goods exports successful H1’25 represents 6.67 percent of the full manufactured goods traded successful the play which stood astatine N16.49 trillion.

This shows a marginal summation successful the export constituent of the full manufactured goods successful the play nether reappraisal erstwhile compared to the corresponding play of the erstwhile twelvemonth (H1’24), which was 6.21 percent.

Analysts person attributed the evident summation successful export of manufactured goods to depreciation of the naira.

According to them, the depreciation of the naira has made immoderate goods produced successful Nigeria to go cheaper, portion CFA franc – a ineligible tender successful Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo – proceed to admit successful value.

President of the Nigerian Economic Society, Adeola Adenikinju, noted that devaluation of currency helps to marque export of goods cheaper.

“One of the reasons wherefore countries devalue their currencies is to marque exports cheaper comparative to different goods truthful they tin merchantability more,” helium said.

Corroborating this view, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, besides attributed the summation successful exports partially to the naira depreciation.

“I deliberation it is due to the fact that of the naira depreciation. Devaluation usually creates opportunities for exports. And the surge successful exports would person been much if it included the ones that are not officially captured. 

“There are a batch much incentives for exporters, not the carnal ones but the ones inherent successful the currency devaluation.

“Once you person this depreciation, the export opportunities summation due to the fact that our goods are cheaper,” Yusuf stated.

The station DIVERSIFICATION: Manufactured goods export up 46.8% to N1.1trn successful H1’25 appeared archetypal connected Vanguard News.