Lagos- A financial expert, Mr Opeyemi Agbaje, on Thursday advised the Federal Government to initiate incentives and policies to boost non-oil exports.
Agbaje made the call in Lagos while speaking on “Review of 2014 and Projections for 2015,” at a forum organised by the Finance Correspondents Association of Nigeria (FICAN).
Agbaje, the Chief Executive Officer, RTC Advisory Services Ltd., said that the country was not in a position to compete favourably in non-oil exports.
He said that the country had achieved significant diversification in terms of local production and consumption, but not competitive in exports.
Agbaje said that South Africa’s exports revenue were not only driven by sale of commodities, but also by services of such companies MTN, DSTV, South African Breweries, and a host of others.
“So, the challenge for the Nigerian economy is for government to create policies and incentives that will allow our private sector to become exporters.
“If our export revenues were earned by thousands of Nigerian companies exporting their services, we would not collapse anytime the price of oil falls.
“We also need to start refining our oil domestically and exporting it. By now, we should be one of the biggest exporters of refined petroleum products in the world,’’ the financial expert said.
Agbaje said that there significant export opportunities in the country.
“If you look at the structure of Nigeria’s Gross Domestic Product (GDP), you will see that huge opportunities abound in Nigeria.
“In terms of the structure of domestic production, we have done a good job of diversification, but the problem is that in terms of the structure of export and government revenue, we have not done enough,” he said.
The senior consultant said that crude oil export still accounted 90 per cent of government’s revenue.
“So clearly, two things would happen, we would have to diversify exports and domestically, government would have to diversify its income which means it will increase focus on tax.
“From the point of business, like I said earlier, there are still sectors that hold promise for significant growth.
“Look at the e-commerce space, look at Konga and Jumia and the growth that is going on in that sector.
“Look at real estate which is now eight per cent of the economy; look at entertainment, which is the fastest growing sector in the Nigerian economy.
“Consider the success in manufacturing around food, beverages and tobacco and cement, which has significant growth rate.
“Examine the hospitality, hotels, construction, all of which are growing above 12 per cent; look at the power sector, these all, hold promises for the future,’’ he said. (NAN)
