Why NEPC discourages export of raw products – Yakusak

The Executive Director of the Nigerian Export Promotion Council (NEPC), Dr Ezra Yakusak, has said although the agency encourages businesses to export their products, it, however, believes that adding value to raw products exported abroad will be more profitable to the country. Yakusak said a recent study and survey showed that processing raw products into […]

The Executive Director of the Nigerian Export Promotion Council (NEPC), Dr Ezra Yakusak, has said although the agency encourages businesses to export their products, it, however, believes that adding value to raw products exported abroad will be more profitable to the country.

Yakusak said a recent study and survey showed that processing raw products into semi or finished goods sold better than just exporting them raw.

He made the statement in Abuja on Wednesday at a journalists’ conference with the theme, “The Role of Non-Oil Sector Towards Economic Diversification, GDP Growth”.

He said “If crude oil is taken from Nigeria, it won’t crumble, rather it will come out stronger which is why non-oil export is the way to go.

“One of the key components of export for survival campaign is that we want value addition. Although we encourage MSMEs to export, we subtly discourage the export of just raw materials as we tell exporters to add value to their products. 

“For instance, we export 770,000 metric tons of sesame, cashew, and cocoa seeds, out of which only 12 per cent is consumed locally. 754,000 metric tons is exported raw while only 16 per cent is processed which means we are exporting jobs to Europe and Asia.”

Speaking further, he added that while he was on a fact-finding mission to Europe, findings showed that packaging was a major reason behind export rejects of Nigerian products.

“Our findings have shown that packaging is a major challenge in exporting products which is why we have major cases of export rejects.

“However, we are working on a policy now that will mandate us to assess potential export products to see the packaging standard before it is exported,” he added.

Dr Yakusak added that NEPC will launch Nigeria’s export trade house in China this month.