1. SUPPORTING THE GROWTH OF EXPORT INDUSTRY TOWARDS A SUSTAINABLE MARITIME TRADE PRESENTED BY ABBA BELLO, MD/CE NIGERIAN EXPORT – IMPORT BANK (NEXIM) AT THE 10TH NIGERIAN INTERNATIONAL MARITIME PORTS AND TERMINALS EXPO & CONFERENCE 22ND – 24TH AUGUST, 2017 MARCH, 2017

2. PRESENTATION OUTLINE INTRODUCTION NIGERIA’S TRADE PATTERN
CHALLENGES TO MARITIME TRADE AND EXPORT GROWTH AND DEVELOPMENT
NEXIM’S ROLE IN SUPPORTING EXPORT AND SUSTAINABLE MARITIME DEVELOPMENT
CONCLUDING REMARKS
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3. 1.0 INTRODUCTION Import Trade
Statistical data gleaned from the CBN Annual Reports between 2013 and 2015 showed general decline in Nigeria’s import recently;
Decline in imports value / volume of both oil and non-oil with oil imports declining about 38% and non-oil declining by 10% in 2015
About 70% of non-oil imports are from countries with strong maritime industry and shipping lines as per summary of Top 8 non-oil imports to Nigeria
Source: CBN Annual Reports 2015
Ranking
Country
% Share 1
China
32.9% 2
United States of America
11.4% 3
India
8.0% 4
United Kingdom
5.3% 5
Germany
4.2% 6
Netherlands
3.6% 7
Italy
2.1% 8
Japan
1.8%
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4. 1.0 INTRODUCTION … Cont’d Export Trade
On export trade, statistical data (2014 and 2015) from the both CBN Annual Reports and the World Bank showed also a declining trend in percentage contribution of exports of goods and services to GDP;
Source: CBN Annual Accounts
On comparative basis, Nigeria’s exports of goods and services is far below the global annual average of about 30% as per summary below;
Percentage Share of Exports of Goods and Services to GDP
Source: World Bank
Year
% of Aggregate Merchandise Exports to GDP
2013
15.8%
2014
14.6%
2015
9.6%
Year
Nigeria
World’s Average
2013
18.05%
30.40%
2014
18.44%
30.28%
2015
10.63%
29.37%
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5. 2.0 CHALLENGES TO MARITIME TRADE AND EXPORT GROWTH AND DEVELOPMENT
Over 90% of the world's trade is carried by sea, which is by far the most cost-effective way of moving cargoes around the world. However, it is disconcerting to note that;
African container traffic is less than 1% of total world container traffic of over 400 million containers
Intra-ECOWAS trade had increased in the past decade from about 5 million tonnes to over 13 million tonnes without corresponding increase in transport infrastructure, especially maritime transport and connectivity.
Nigeria’s intra-regional trade has muted at about 15% and 12% for African and ECOWAS trade respectively over the past five years.
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6. 2.0 CHALLENGES TO MARITIME TRADE AND EXPORT GROWTH AND DEVELOPMENT… Cont’d
The foregoing issues and opportunities to grow trade and increase maritime activities are being constraint by the following challenges;
The lack of adequate transportation infrastructure and congestion on trade corridors – ports and borders. Africa’s annual transport Infrastructure gap is estimated at US$41 billion
High transportation costs and excessive transit time that makes intra-regional trade non-competitive. These constraints therefore, make West Africa transport and logistics costs one of the highest in the World.
Absence of a dedicated safe and modern fleet to encourage and facilitate Atlantic Short-Sea Trade along the West and African regions
Non-Tariff Measures Barriers to trade growth and development, leading to high level of informal trade
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7. 2.0 CHALLENGES TO MARITIME TRADE AND EXPORT GROWTH AND DEVELOPMENT… Cont’d
Due to the subsistence of some of the above challenges, Nigeria’s and sub-Saharan African Performance Logistics Index (LPI) have the lowest international score on perception on logistics according to the World Bank, which are based on six key dimensions - efficiency of customs clearance process, quality of trade- and transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time.
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8. 3.0 NEXIM’S ROLE IN SUPPORTING EXPORTS AND SUSTAINABLE MARITIME DEVELOPMENT
The Nigerian Export – Import Bank was established by Act 38 of 1991 as Nigeria’s Export Development Bank. The Bank’s broad mandate include the provision of the following to support and facilitate Nigeria’s export trade;
Credit Facilities in both local and foreign currencies,
Risk-bearing facilities - Export Credit Guarantee & Export Credit Insurance
Business Development and Financial Advisory Services
Trade & Market Information
On its developmental role to bridge infrastructure gap, especially toward ensuring intra-regional export growth and development of the maritime sector, the Bank is partnering with the Organized Private Sector (OPS) and key stakeholders like the Nigerian Shippers Council to promote the Regional Sealink Project.
The Sealink is designed with a view to reduce high transportation / logistics costs that would enhance efficiency, competitiveness and trade connectivity within the West and Central African Regions.
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9. 3.0 NEXIM’S ROLE IN SUPPORTING EXPORTS AND SUSTAINABLE MARITIME DEVELOPMENT … Cont’d
The Sealink is designed principally with a view to reduce high transportation / logistics costs that would enhance efficiency, competitiveness and trade connectivity within the West and Central African Regions.
While arrangements to commence pilot scheme of the Sealink before year end is at advanced stage in partnership with the Regional Sealink Consortium, it is pertinent to highlight other objectives of the project to the country and operational mandate of NEXIM;
a) Provision of dedicated regional maritime services to promote connectivity, trade frequency and moderate transport cost, thereby facilitating formal / recorded trade within the Sub-Region;
b) Broadening trade prospects and improving market access for regional goods and services;
c) Deepening payment systems and enhancing the utilization of internationally recognized trade payment instruments
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10. REGIONAL SEALINK PROJECT
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11. Thank You www.regionalsealink.com
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