By Kunle SHONUGA
A former Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, has warned that the country might not be able to fulfill its foreign obligations without prioritising funding for export.
Isemede made the assertion on Thursday in Lagos. He said if adequate support was given to export and the real people targeted; within six months to one year, there would be full economic recovery and lots of jobs created through the value chain.
Isemede made the submission while reacting to the signing of N9.12 trillion 2018 Budget and the changes made in some of the allocations.
TBI Africa reports that President Muhammadu Buhari on June 20, during the signing, raised concerns that the National Assembly made cuts amounting to N347 billion in the allocations to 4,700 projects submitted to them for consideration.
The legislature, however, introduced 6,403 projects of their own amounting to N578 billion into the budget.
Among the projects affected are the provisions for Export Expansion Grant (EEG) and Special Economic Zones/Industrial Parks, which their allocation were reduced by N14.5 billion.
The Export Expansion Grant scheme is an incentive required for the stimulation of export oriented activities that will lead to significant growth of the non-oil export sector and the diversification of the economy.
President Buhari had said many of the projects cut were critical and might be difficult, if not impossible, to implement with the reduced allocation.
Isemede, who is the National Expert of Export Value Chain for United Nations Industrial Development Organisation (UNIDO), expressed displeasure at the funding cuts and state of industrialisation in the country.
“We are number one producer of about 10 different produce and now is the time to focus more on export and adding value to what we produce.
“With what has been invested in petroleum subsidy, if one per cent of it is given to export in line with the budget we are seeing, Nigeria will be a super power,” he said.
The UNIDO consultant noted that if the situation was not quickly rectified, Nigeria would not benefit from the African Continental Free Trade Agreement (AfCFTA) that the Federal Government intends to sign and the currency swap with China.
“The EEG is an incentive that will enable the country place its exporters and manufacturers on the same pedestal with the rest of the world. How do we encourage them without this vital incentive?”
According to Isemede, the country is overflooded with imports and export activities should be given priority to boost foreign exchange earnings, competitiveness and diversification agenda of the government.
