Manufacturers’ Exports Soar on Weak Naira.
Nigeria’s top manufacturers have significantly boosted their export sales, tripling them in the first quarter of 2024, thanks to a weaker naira. Financial statements from companies like Unilever Nigeria, Nestlé Nigeria, Okomu Oil Palm, and Dangote Cement show a 201.1 percent rise in combined export revenue to N387.2 billion, the highest in nine years. This increase is due to the devaluation of the naira, which has made Nigerian goods cheaper and more competitive internationally.
Experts suggest that currency devaluation can make exports more attractive, but stress the importance of creating a favorable environment for local industries to take full advantage. The Central Bank of Nigeria’s FX reforms have led to a near 30 percent devaluation of the naira this year. While this has spurred exports, it has also increased production costs for manufacturers.
Despite the export surge, the overall cost of production remains high due to expensive imports. Analysts recommend that the government support exporters by addressing regulatory and logistical barriers, ensuring a more competitive business environment, and providing financial incentives.
Key figures show Nestlé with the highest export growth of 275 percent, followed by Dangote Cement at 201.7 percent. However, only Nestlé reported an after-tax loss among the top exporters. Overall, Nigeria recorded a trade surplus in 2023, with projections suggesting significant growth in regional trade and exports by 2035
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