Nigeria to adopt zero oil export strategy to add $150bn to reserves in ten years

Federal Government new export initiative titled Zero Oil Plan is to add $150 billion to Nigeria foreign reserves over the next 10 years. The plan is also to create 500,000 jobs, lift 10 million Nigerians out of poverty and integrate each State of the Federation into the export value chain.
According to a presentation made to the National Economic Council NEC, by the Nigerian Export Promotion Council, it plans to restructure the Nigeria Economy to survive without Crude Oil.  The Plan is called “The Zero Oil Plan”. Council was informed that Nigeria is going through the sharpest falls of export revenues in her history, loosing over N30 trillion of National export revenue between 2015 to 2017 due to the crash in oil prices, which resultant effect was recession. Council was informed that there was urgent need to rapidly ramp up non-oil exports as Nigeria future earnings from crude oil face significant headwinds.

The “Zero oil Plan” aims at earning at least $30 billion from non-oil sources in the near to medium term as against the current earnings of about $5 billion. The objectives of the Zero Oil Plan is to add $150 billion to Nigeria foreign reserves over the next 10 years, create 500,000 jobs, lift 10 million Nigerians out of poverty and integrate each State of the Federation into the export value chain. The focus of the plan is on the export rice, wheat, corn, palm oil, rubber, hides and skin, sugar, soyabeans and automotive parts among others. Destination countries for exports include; Netherlands, China, Iran, Germany, United Kingdom, France, Spain, Italy, India, S/Arabia, among others.

Disclosing its own export initiative, Nigerian Export Import Bank NEXIM, said that “States Export Development Initiative” is being pursued as a medium to long term strategic plan aimed at stimulating and increasing deliberate funding intervention to SMEs in the non-oil sector for the attainment of its objectives. It said that one of the major objectives of the initiative is contributing to the implementation of economic policies of the country, like the ERGP and the Agricultural Promotion Policy among others.

It added that the initiative is built on schematic transaction dynamics with key features like provision of a dedicated funding of a minimum of N5 billion as a pilot phase with window for other facilities and partnership. It said that the initiative will also help to re-awaken the business consciousness of the States towards export and value added production, especially in the areas of manufacturing, agro-processing and solid minerals.
The Managing Director of the Nigerian Export Processing Zones Authority stressed the need to have more special economic zones in addition to the Calabar Free Trade Zone.

He said that the major defect in the Calabar Free Trade Zone is that the zones has not been linked to the Calabar Port, and that there is urgent need to do so in order to make the zone a lot more effective. Partnership between the Federal and State Governments as well as the private sectors is needed. He urged that the location of Free Trade Zones should be done strictly on business consideration and not political considerations. He also asked Council to provide incentives for Free Trade Zones to include linkage to rail lines, express ways, close proximity to utilities, airports among others.