Nigeria’s non-oil export sector experienced a marginal increase of 2% in earnings, reaching $510 million in April 2024, up from $500 million in March.
This is according to the Central Bank of Nigeria’s (CBN) April 2024 Monthly Economic Report.
The report read: “Higher commodity prices boosted earnings from nonoil export. Provisional data indicated that non-oil export earnings increased marginally to US$0.51 billion, from US$0.50 billion in March 2024.”
This growth was largely driven by higher commodity prices and the robust performance of key exporters such as Starlink Global and Dangote Fertilizer Ltd, which emerged as the top contributors.
Starlink Global account for 30.93% of non-oil export earnings
Starlink Global, an agricultural produce marketing company exporting cocoa, cashew, sesame seeds, among others, from Nigeria, led the charge.
The company accounted for 30.93% of the total non-oil export earnings, primarily through the export of dairy products.
Dangote Fertilizer followed closely, contributing 23.33% with its urea exports.
Indorama Eleme Fertilizer also made a notable impact, accounting for 17.77% of the earnings from its urea exports, while Outspan Nigeria Ltd added 16.88% through dairy product exports. Metal Recycling Industries Ltd, specializing in aluminum and copper ingots, contributed 11.09% to the total.
The CBN report noted: “Receipts by the top five non-oil exporters rose to US$0.14 billion, from US$0.11 billion in March 2024. Analysis by share showed that Starlink Global and Dangote Fertilizer Ltd were the leading exporters, accounting for 30.93 and 23.33 per cent of the total, from the export of dairy products and urea, respectively.
“Indorama Eleme Fertilizer accounted for 17.77 per cent from urea export. Outspan Nigeria Ltd contributed 16.88 per cent from the export of dairy products, while Metal Recycling Industries Ltd with the export of aluminum and copper ingots constituted 11.09 per cent.”
Vietnam, US top non-oil export destinations
The primary destinations for Nigeria’s non-oil exports included Vietnam, the United States, and the Netherlands, which collectively received a significant share of the country’s exports.
Other notable destinations were Malaysia, India, and Japan. Key commodities that fueled these exports were cocoa beans, cashew nuts, urea, cocoa products, and sesame seeds.
The report read: “Analysis showed that the key destinations of Nigeria’s non-oil export were Vietnam (13.96%), the US (13.87%) and the Netherlands (11.81%). Other notable destinations were Malaysia (7.25%), India (6.44%), and Japan (6.37%). Analysis revealed that the main commodities exported were cocoa bean (19.95%), cashew nuts (18.25%), urea (13.21%), cocoa products (5.34%), and sesame seeds (4.79%).”
What you should know
Nairametrics earlier reported that Nigeria’s non-oil sector exhibited signs of stagnation despite Nigeria’s overall growth in Gross Domestic Product (GDP) in the second quarter of 2024.
According to the latest GDP report by the National Bureau of Statistics (NBS) for the second quarter of 2024, the non-oil sector recorded a growth rate of 2.80% in real terms, mirroring the growth rate seen in the first quarter of 2024.
This growth rate is notably lower than the 3.58% recorded in the same quarter of 2023, indicating a slowdown, and raising concerns about the country’s economic diversification efforts.
While the non-oil sector continues to play a pivotal role in Nigeria’s economy, its inability to sustain robust growth amidst fluctuating global oil prices and economic pressures raises concerns about the country’s economic resilience and long-term growth prospects.
