Despite the impressive expansion of Nigeria’s non-oil export sector, indigenous business owners seem to be missing out, as foreign investors-mainly from countries like India, China, Lebanon, and Vietnam-continue to dominate the landscape.
Experts within the industry warn that the expected economic benefits from diversifying away from oil are being undermined by the operational tactics of these international players.
According to data from the National Bureau of Statistics (NBS) and reports from the Nigerian Export Promotion Council (NEPC), Nigeria’s non-oil export earnings soared to N4.8 trillion in the first half of 2025. This marks a staggering growth of over 391% compared to the N977 billion recorded in the same period of 2021.
The NEPC credits this milestone to President Bola Tinubu’s “Renewed Hope Agenda.”
Nonye Ayeni, NEPC’s Director General, remarked on the half-year report:
“The positive impact of the President’s policies is clear. Our focus now is to sustain this momentum by partnering with the Ministry of Trade and Industry, exporters, and other stakeholders to develop incentives that will further stimulate export activities.”
However, beneath these encouraging statistics, many insiders paint a more complex picture, indicating that the sector’s true condition may not be as robust as the numbers suggest.
There are growing concerns about the dominance of unprocessed exports and trade practices that do not favor Nigeria’s long-term economic interests.
Local Exporters Face Financial and Bureaucratic Barriers – Insights from NCAN
Dr. Ojo Ajanaku, President of the National Cashew Association of Nigeria (NCAN), which represents cashew farmers, processors, marketers, and exporters, shared a candid assessment of the hurdles confronting local players.
Speaking to Financial Vanguard, he emphasized that while Nigerian exporters have the capacity and ambition to boost their contribution to the nation’s GDP, they are constrained by several critical challenges.
“Access to affordable financing remains a major bottleneck. Many aspiring exporters cannot scale their operations due to the scarcity of low-cost capital,” he explained.
Ajanaku pointed out that exorbitant interest rates are a significant deterrent.
He also revealed that foreign investors currently hold a competitive edge in Nigeria’s export market, benefiting from easier access to foreign currency and more favorable loan terms from Nigerian banks.
“Foreign investors often secure cheaper funding from their home countries and Nigerian financial institutions at reasonable rates. They sometimes leverage extensive documentation to access local funds, a privilege that Nigerian exporters are denied due to stringent collateral demands,” he noted.
Moreover, Ajanaku highlighted that many foreign buyers bypass the mandatory Nigerian Export Proceeds (NXP) form, which is essential for repatriating export revenues back into Nigeria.
“This loophole leads to significant capital flight, as most of the export earnings are taken out of the country,” he added.
He also described how foreign buyers pressure local farmers into harvesting cashew nuts prematurely, which compromises both the quality and future yield of the crop.
“Harvesting before maturity reduces the potential for subsequent flowering and fruiting, ultimately diminishing production volumes,” he explained.
Foreign investors’ superior funding capacity also enables them to outbid Nigerian operators for local produce.
Compounding these issues are administrative delays at ports. Ajanaku lamented, “Bureaucratic inefficiencies cause shipment delays, often resulting in missed shipping deadlines and contract breaches.”
He stressed the importance of local processing, noting that processed products command higher market prices than raw exports. However, the high cost of processing in Nigeria limits competitiveness against countries like Vietnam and India.
“We call on the government to introduce Special Agro-Processing Loans with minimal collateral and interest rates between 3-5% to empower local processors,” he urged.
“Additionally, energy subsidies for agro-processors would incentivize increased production and support farmers throughout the value chain,” he added.
Ajanaku emphasized that resolving these challenges could unlock Nigeria’s vast agricultural potential. “Nigeria was once the world’s top cashew producer but has slipped to fourth place. Large areas of arable land, currently underutilized or controlled by criminal elements, could be transformed into productive farms for cashew, palm oil, cocoa, rubber, and other crops.”
He concluded, “Enhancing local processing will encourage more Nigerians to engage in agriculture, reduce dependence on oil, and generate much-needed employment along the agricultural value chain.”
Calls for Greater Focus on Value Addition
Dr. Mark Ojobi, a lecturer at Yakubu Gowon University, Abuja, acknowledged the sector’s growth but pointed out persistent challenges.
“The removal of subsidies and the naira’s floatation have increased import costs, making exports more attractive. Exporters now earn more foreign currency when converted to naira,” he explained.
He also noted that Nigeria’s involvement in the African Continental Free Trade Agreement (AfCFTA) is opening up new regional markets, especially for agricultural goods.
However, Ojobi warned, “Nigeria mainly exports raw commodities such as cocoa beans, cashew nuts, and sesame seeds, which yield lower revenues compared to processed products. Value addition is crucial to unlocking the sector’s full potential.”
“Shifting from raw exports to value-added goods could boost Nigeria’s export earnings from $13 billion to $50 billion without increasing export volumes,” he emphasized.
Economist and public affairs analyst Chief Peter Ameh highlighted systemic issues, stating, “A large share of agricultural and solid mineral exports occurs through informal channels due to bureaucratic obstacles. Even the NBS admits its figures are estimates.”
“Cross-border trade with neighboring countries like Benin, Niger, Cameroon, and Chad is largely unrecorded, so actual non-oil export volumes may differ significantly from official data,” he added.
Meanwhile, advocacy groups such as the Civil Society Legislative Advocacy Centre (CISLAC) argue that Nigeria’s export sector remains underperforming.
Auwal Musa, CISLAC’s Executive Director, stated, “Every value chain is operating below its potential. Export statistics must translate into real benefits for Nigerian exporters. The ultimate goal is to improve livelihoods, not just to showcase impressive numbers.”
NEPC’s Position on Industry Concerns
Responding to the issues raised by stakeholders, NEPC spokesperson Mr. Ndubueze Okeke clarified that challenges such as high interest rates and port delays fall outside the council’s jurisdiction.
“These matters are managed by the Central Bank of Nigeria, commercial banks, the Nigerian Ports Authority, and possibly the Ministry of Finance,” he explained.