Nigeria’s Manufacturing Export Down 166% – World Bank.

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Nigeria’s revenue from the manufacturing export sector has reduced by 166 percent according to the world bank. Revenue realized from the sector plunged to ₦778.4 billion from the ₦2 trillion peaked it reached in 2019.

According to a newly published report themed ‘Africa Pulse’ by the world bank, the trend since 2019, has been downwards recording a significant decline to ₦960.7billion attributed to covid-19 in 2020, while a minor recovery was recorded in 2021 at ₦1.15trillion.

However, in 2022 a huge drop to ₦781.1billin was recorded and another significant drop to ₦778.4billion was recorded in 2023.

The bank specifically blamed the country’s dwindling foreign trade on poor infrastructure and inefficient logistics, among other factors.

According to the report, the cost of trade in Nigeria is four to five times higher than what is obtained in the United States due to insecurity, higher transportation costs, topography and poor road infrastructure.

the report further noted that the consequences of these distortions, include preference of African producers to sell locally rather than export.

“Studies from the Africa region consistently find spatial differences in prices of imported goods (food and non-food) as well as non-traded agricultural staples, indicating that markets are not well-integrated, and retail prices of products are affected by distance.

“For instance, trade costs are four to five times higher in Ethiopia and Nigeria than in the United States, due to poor road infrastructure, low competition in the transportation sector, and topography,” the report read.

Manufacturers and operators in the export ecosystem have lamented that the harsh business environment in the country is making local products uncompetitive globally.

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