“Nigeria’s Non-oil Export Freight Cost Jumps By Over 30%” – NEPC

Indications have emerged that efforts by the Federal Government to boost the nation’s non-oil export earnings may not yield expected fruits due to the alarming rate of infrastructure deficit in the country, which makes movement of export produce very expensive.
The Nigerian Export Promotion Council, NEPC, which gave this indication, said that the high transport cost alone erodes over 30 per cent of the export value due to the poor infrastructure base.
This is against the backdrop of the fact successive goverments in Nigeria have over the years stressed the need to diversify the nation’s current mono product economy, which heavily relies on oil revenue.
The situation is even more worrisome, especially given the uncertainties in the global crude oil market, which led the the sharp decline in the price of the commodity from over $120 per barrel to less than $30 per barrel.

Director in charge of Project Development of the NEPC, William Ezeagu, who spoke at the just concluded two-day seminar organised by the Nigerian Shippers Council in collaboration with Tell Magazine on the opportunities in Nigeria’s maritime industry, expressed regrets that poor infrastructural base, especially in the area of transportation remains the bane of non-oil export promotion in the country.

According to him, apart from the failure of the government to provide necessary incentives and conducive operating environment, its in ability to provide transport infrastructure remains the greatest clog in the wheel of non-oil exports.

He said: “No nation develops without adequate and efficient transport system because this drives the wheel of the economy and commerce because it is not possible to move export goods from the hinterland to the airports and seaports without a cheap and efficient transport system”.

“It costs well over N35,000 to move a trailer load of plantain or pinneapples from a farm in Benue or Edo Sstate to Lagos due to the poor road infrastructure and by the time the exporter incurs other handling cost, he would find out that more than 30 Per cent of the value of the products would have been eaten up in moving the products within the country and when he pays for shipment, nothing would be left for him,”he added.

RELATED ARTICLESMORE FROM AUTHOR

1 COMMENT

Leave a Reply