Nigeria has immense potential in the global export market, yet exporters face significant hurdles that hinder their competitiveness. At the Export Management Programme (EMP), hosted by Fidelity Bank and Lagos Business School, industry experts identified major roadblocks such as supply chain instability, financing gaps, poor logistics, and lack of trade data. Addressing these challenges is crucial for Nigeria’s economy to thrive in the international market.
1. Supply Chain Struggles: A Roadblock to Scaling
For many Nigerian exporters, securing international orders is not the problem—fulfilling them consistently is. Urena Iheme, CEO of Fefereti Group, faced this issue when demand for her chin chin snack grew in Houston, but supply chain instability made scaling difficult. Similarly, even though her company supplies Air Peace, expanding into Europe and other African markets remains a challenge.
Basic products like palm oil are often rejected internationally due to subpar processing and quality standards. Meanwhile, Ghana has successfully tackled these challenges, allowing its exports to thrive. Addressing these supply chain inefficiencies will be key to ensuring Nigerian products meet global standards.
2. Data Deficiency: The Silent Barrier to Growth
Beyond logistics, Nigerian exporters suffer from a lack of reliable trade data. Patrick Ulayi, MD of Alliance & Frontier Limited, highlights how poor access to market forecasts, transaction histories, and trade records makes it difficult for businesses to make informed decisions. Without proper data, securing financing from banks and investors remains an uphill battle, limiting the ability of businesses to scale effectively.
3. The FX Problem: Bridging the Import-Export Gap
Nigeria’s foreign exchange (FX) challenges stem largely from its import-export imbalance. Emmanuel Nwalor, Fidelity Bank’s export and agriculture lead, points out that import abuses restrict dollar inflows, putting pressure on the naira.
While increasing exports would strengthen FX reserves, export financing remains problematic. Unlike importers who pay upfront, exporters rely on international buyers, which exposes them to the risk of non-payment. Nigerian banks provide limited solutions, making structured financing a necessity for the sector’s growth.
4. Logistics Nightmares: The Man-Made Problem
Poor infrastructure remains Nigeria’s biggest export challenge, according to Professor Frank Ojadi of Lagos Business School. He links the issue back to colonial times, citing the famous groundnut pyramids as a sign of logistical failure rather than surplus production.
Today, Nigerian exporters grapple with high transport costs, port congestion, and customs delays, making it difficult to compete in global markets. Addressing these issues through strategic investment in infrastructure, efficient port management, and streamlined customs processes will significantly enhance Nigeria’s export capabilities.
5. Why Non-Oil Exports Matter More Than Ever
Nigeria’s dependence on crude oil remains a significant risk, with oil accounting for 68.87% of total exports in late 2024, while non-oil exports contribute less than 10% (NBS data). Emmanuel Nwalor stresses that diversifying exports will boost FX inflows and ease pressure on the naira. However, without key policy reforms, better financing, and improved logistics, Nigerian exporters will continue to face an uphill battle.
The Way Forward: Solutions for Sustainable Export Growth
To enhance Nigeria’s export sector, stakeholders must take strategic action in the following areas:
Investing in Infrastructure: Modernizing transport networks, streamlining customs processes, and decongesting ports will enhance global competitiveness.
Improving Quality Standards: Adopting stringent quality control measures like Ghana will help Nigerian products gain international acceptance.
Enhancing Trade Data Access: Providing exporters with reliable trade insights will facilitate better decision-making and financing opportunities.
Expanding Export Financing Options: Structured financial support, including credit facilities and risk mitigation strategies, will reduce the burden on exporters.
Policy Reforms for Ease of Doing Business: Government-driven policy reforms can create an enabling environment for exporters.
Conclusion
Nigeria has the potential to be a major player in global trade, but persistent challenges in logistics, financing, and policy frameworks hinder growth. By addressing these pain points and implementing strategic reforms, Nigerian exporters can scale their businesses, contribute to FX inflows, and strengthen the country’s economic position on the global stage.