Earnings from the export of non-oil products, between January and October last year, amounted to $6.03 billion, latest data obtained from the Central Bank of Nigeria (CBN) has shown.

The amount is 25.36 per cent ($1.22 billion) higher than the $4.81 billion that the country generated from non-oil exports in the corresponding period of 2023.

New Telegraph’s analysis of the economic report for October 2024 recently released by the CBN as well as a review of the apex bank’s quarterly economic reports for the first three quarters of last year, indicate that although oil and gas exports still account for over 80 per cent of the country’s foreign exchange earnings, its earnings from non-oil exports have been maintaining an upward trend in recent months.

For instance, the Bank’s quarterly economic reports show that non-oil export receipts grew to $1.87 billion in Q3’2024 from $1.76 billion and $1.77 billion in Q2 and Q1’2024 respectively, while its latest monthly economic report indicates that non-oil export earnings rose $0.62 billion in October 2024, from $0.52 billion in the preceding month. Specifically, in its economic report for October 2024, the CBN said:

“Provisional data revealed an increase in the trade surplus to $2.21 billion, from $2.07 billion in September 2024. The improvement in surplus was driven by a 3.51 per cent increase in export receipts ($5.02 billion) from $4.85 billion in the preceding month, attributed to higher exports of both crude oil and non-oil products.

“Analysis of export by composition showed that crude oil and gas exports, accounted for 87.74 per cent of total export receipts, while non-oil exports, constituted the balance.” It further stated: “Non-oil export earnings increased by 19.23 per cent to $0.62 billion, from $0.52 billion in September 2024.

Analysis by direction of trade revealed Brazil as the major destination for Nigeria’s non-oil export products (20.22% of total). This was followed by Netherlands (15.61%), Malaysia (11.76%), Japan (6.35%), Germany (5.32%), and USA (5.21%).

“The major commodities exported were cocoa beans, which represented the largest share at 30.04 per cent, followed by urea (26.59%); sesame seeds (5.64%), cocoa products (5.63%), aluminium (3.84); and copper (3.43%).” “Receipts from the top five non-oil exporters surged to $0.24 billion, from $0.13 billion in September 2024.

Analysis by share indicated that Indorama Eleme Fertilizer & Chemical Ltd. (18.97%) and Dangote Fertilizer Ltd. (8.72%) were the leading exporters with the exports of urea and fertilisers, respectively. “Outspan Nigeria Ltd. (8.45%) ranked third, through the export of cocoa.

Starlink Global & Ideal Ltd. followed with a 7.35 per cent share, from the export of dairy products, while Olatunde International Ltd. (5.96%) ranked fifth, from the export of cocoa beans,” the CBN added.

Analysts note that the CBN’s liberalisation of the forex market in June 2023, which led to the devaluation of the naira, played a key role in boosting the country’s export earnings last year.

Indeed, commenting on the latest foreign trade report released by the National Bureau of Statistics (NBS), analysts at CSL Research stated that the devaluation of the naira on the official market, “contributed to increased export values, driving export activities and making imports more expensive.”

The analysts said: “Nigeria’s foreign trade report by the National Bureau of Statistics (NBS) showed a trade surplus of N5.81 trillion in the third quarter (Q3) of 2024. Total merchandise trade was N35.16 trillion, an increase of 13.3 per cent over the value recorded in Q2’24 and up significantly by 81.4 per cent compared to the value recorded in Q3’23.

“Total exports grew to N20.49 trn, representing 58.3 per cent of total trade and an increase of 16.8 per cent & 98 per cent from N17.55 trn & N10.35 trillion recorded in Q2’24 & Q3’23, respectively.

Total imports amounted to N14.67 trillion, up 8.71 per cent and 62.3 per cent compared to N13.49 trillion & N9.04 trillion recorded in Q2’24 & Q3’23, accounting for 41.7 per cent of total trade.

“Looking at the export breakdown, of the N20.49 trillion total exports, crude oil export contributed 65.4 per cent (N13.41trn).

Non-crude oil exports added about 34.56 per cent (N7.08trn), of which non-oil products from agricultural goods, solid mineral, manufactured goods, and raw materials goods sectors contributed only N2.5 trillion, i.e., only 12.2 per cent of the total exports.”

However, the CSL Research analysts pointed out that while the contribution of crude oil to total exports is declining gradually, “the figures still highlight heavy reliance on crude oil for export earnings.” “Agricultural products such as cocoa beans, cashew,