Foreigners profiteer from our weak currency, Kano businessmen lament

President, Dawanau International grains market association in Kano, Alhaji Munttaka Isa said  businessmen from neighbouring West African countries are taking advantage of Nigeria’s weak currency to mop up goods in the markets for profit-taking purposes. He made the remark at ‘Excel in Export’ conference organised recently the commercial city of Kano to encourage business owners […]

President, Dawanau International grains market association in Kano, Alhaji Munttaka Isa said  businessmen from neighbouring West African countries are taking advantage of Nigeria’s weak currency to mop up goods in the markets for profit-taking purposes.

He made the remark at ‘Excel in Export’ conference organised recently the commercial city of Kano to encourage business owners to change their business orientation to export-focus growth.

He lamented that traders make very low profit margins on account of bulk purchases foreign buyers used to make.

“Because of our weak currency, businessmen from our west African neighbours have an advantage over us. They come to us to make bulk purchases because their currencies are stronger than ours creating supply gaps in the process,” he lamented.

• Northern leaders pledge to reverse region’s decline, revive economy
• Obi insists on 2027 contest as Atiku hints at running

The CEO of Dala Dry Inland Port in Kano, Alhaji Ahmad Rabiu said businessmen in Kano contribute between 60 and 70 % of non-oil exports, noting however that off takers who are mostly outside the state take the credit.

Rabiu said the Dry Inland Port project foot-dragged for long until  approval was granted in 2022 as final import/export destination to encourage businesses grow.

Dr. Biodun Adedipe, founder and chief consultant B Adedipe Associates limited in his presentation, said in the last two years, non-oil export has significantly increased but the challenge has always remained institutional arrangements.

He said the National Credit Guarantee company has commenced operations on July 1st to make it easy for businesses to have access to funds for non-oil exports.

Adedipe said countries that choose exports-led growth tend to have stronger economic fundamentals, growth strategy and prosperity for citizens whereas importers create jobs abroad instead of creating domestic dollar millionaires.

According to him, Nigeria’s non-oil exports outlook for 2025 and beyond is bright with trade expected to grow at 5.1% in 2025 which can potentially rise to 5.4% in 2028.

While advising local exporters to take advantage of the African continental free Trade  Agreement (AfCTA) Adedipe advised them to be conscious of the local and destination regulatory requirements, technical and financial requirements, products to export (agricultural, manufactured, minerals services), standards and packaging as well as identify risks involved in market access.

The economist also advised them to have a business plan with professional advice, set volumes targets, noting that major domestic policy shifts like the recent tax reforms could be the real game changer capable of igniting regional competition which was the secret behind the Chinese renaissance.