The latest monthly Economic Report from the CBN puts non-oil exports provisionally at $455m in November, indicating a m/m increase of 15 per cent and a y/y increase of 49 per cent.
The m/m increase was largely driven by a sharp rise in export receipts from minerals which stood at $79m. The sectoral breakdown shows that export receipts from the food products and industrial sub-sectors declined by 10 per cent and 7 per cent respectively when compared with the previous month.
Export receipts from agricultural products stood at $139m and accounted for 30.5 per cent of total receipts in November compared with earnings of US$204m in August. Anecdotal evidence points towards a reduction in the value of exports to neighbouring countries on the back of the ongoing border closure which took effect in August.
The CBN governor recently disclosed that the CBN will intensify its policy measures to reach $4bn in non-oil revenues next year. This will require collaboration with the Nigerian Export-Import Bank (NEXIM). As such, the CBN plans to improve access to the N500 billion facility (driven by NEXIM) designed to support the growth of non-oil exports by increasing the export of value-added goods relative to raw materials.
Furthermore, the FGN has made provision of N2.5 billion tax credit for non-oil exporters in 2020. This provision was included in the 2020 national budget. The tax credit is expected to bring some relief to non-oil exporters after the prolonged delay of the Export Expansion Grant.