How banks drove Nigeria’s non-oil export in Q3 of 2017

by | January 22, 2018 12:51 am

A total of 21 financial institutions, which included the CBN and Rand Bank, were used for the issuance and processing of Nigeria Export Proceeds (NXP) forms to exporters in the third quarter (Q3) of 2017.

Stanbic-IBTC had the highest number of NXPs, with transactions worth $74.485 million, occupying 20.09 percent of the total.

Zenith Bank, which came first the previous quarter, was second in Q3, with transactions valued at $71.934, representing 19.40 percent of the total. UBA and Access Bank were third and fourth with 16.25 percent and 8.65  percent share respectively.

While UBA issued NXPs worth $60.250 million, Access Bank did transactions valued at $32.078 million.

Next was the CBN, whose transactions within the quarter totalled $22.851, with a share of 6.16 percent.

Following the apex bank was Standard Chartered, with transactions estimated at $20.908 million, indicating a share of 5.64 percent of the total.

Citi Bank was 7th ,with total transactions valued at $16.392 million and a share of      4.42 percent.

First        Bank issued NXPs worth $13.123 million, with a share of        3.54 percent of the total.

Diamond Bank did transactions worth $12.138 million within the period, having a share of 3.27 percent.

Eco Bank was 10th, with total transactions worth $11.158  and a share of 3.01 percent.

While Fidelity Bank was 11th with $8.675 million worth of NXPs, sharing 2.34 percent of the total, Union Bank with $6.975 million transactions and 1.88 percent share was 12th.

Urea replaced naphthalene as Nigeria’s biggest non-oil export product in the third quarter of 2017.

Urea’s share was 8.82 percent of the total non-oil export in Q3.

Urea was exported by Indorama-Eleme Fertilizer & Chemicals Limited within the period.

Naphthalene, a chemical product obtained from petroleum distillation, topped Nigeria’s non-oil export products chart in the second quarter of 2017.

Nigeria’s non-oil export from January to September of 2017 rose to $1.259 billion from $812.67 million recorded in the corresponding period of 2016.

This represents 54.96 per cent rise, data from the Nigerian Export Promotion Council (NEPC) show.

In the third quarter of 2017, non-oil export of Africa’s most populous country stood at $370.707 million, representing an increase of 68.57 percent when compared with $219.908 million recorded in the same period of 2016.

Like in the second quarter of 2017, the Nigerian National Petroleum Corporation (NNPC) and the Pipelines and Product Marketing Company (PPMC) exported naphthalene and  Low Pour Fuel Oil (LPFO) within the period.


However, naphthalene was the second biggest non-oil export product within the period, with a share of 8.78 percent of the total.


The third biggest non-oil export product was Low Pour Fuel Oil, exported by the NNPC/PPMC. LPFO had a share of 7.82  percent of the total.


Cigarettes, exported by British-America Tobacco Company Limited, was next, with a share of 7.72  percent of the total.


Cocoa Beans exported by Olam Nigeria, was fifth with a share of  6.05  percent of the total.


Out of 85 countries that imported Nigerian products during the period, Netherlands came tops, with Nigeria’s export to the Dutch country estimated at $46.849 million, representing 12.64 percent of the total non-oil export value for Q3. In the previous quarter (Q2), the United States had been first, followed by Netherlands and Vietnam.


However, in the third quarter, Netherlands was first, followed in the second and third positions by the United States and Ghana respectively.

ECOWAS contributed 25.62 percent of the total export value and 83.46 percent of Africa’s import from Nigeria.

According to the NEPC, a total of 147 products were exported in the Q3 of 2017 as against 138 in the preceding quarter.

Three hundred and sixty-nine companies took part in the export of Nigerian products within the period, according to the NEPC.

Nigerian manufacturers are canvassing a shift from export of mainly agricultural products to semi-finished or finished products. They say export of raw agricultural products robs them of local raw materials, pushing them  into scrambling for foreign exchange to import the same commodities.


“Once the tanneries are through with production, they export the entire leather to the detriment of local leather works manufacturers. This is affecting the finished leather sector in Lagos, Onitsha and especially the Aba areas,” Ken Anyanwu, national secretary, Association of Leather and Allied Industrialists of Nigeria (ALAIN), complained to BusinessDay recently.


Five major exit points within the period were Tin Can Island Port, Apapa Port, Okrika Jetty, Indorama Jetty and Onne Port.