The House of Representatives on Monday tasked the management of the Nigerian Export Promotion Council (NEPC) on the need to redouble its efforts toward improving non-oil revenues.
Chairman, House Committee on Commerce, Hon. Femi Fakeye gave the charge in Abuja, during an interactive session with NEPC Chief Executive Officer, Mr. Olusegun Awolowo and other members of the management team during an oversight function to the Council.
Hon. Fakeye who underscored the need for the Council to attain a minimum of 35 percent of non-oil export ratio in no longer distance.
“The most important thing for us to realize that this country Nigeria needs this effort that your company is saddled with, that is to push for non-oil export. Apart from existing fact that we all know that this year’s budget the country typically we are still dependent much on crude oil sales.
“As we speak right now even the benchmark of $55 per barrel that we have in the budget, is dangling up and down; the prices grow everyday and as we speak I think it’s even below that threshold.
“So what else do we do? It’s been a gospel that is being preached for decades non-oil export for Nigeria but if anything now, it is more critical at this point.
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“Apart from the up and down in the oil prices in the world market, when you look at the short term, meaning between now and five years to 10 depending on what type of economic assumption used; the future of crude oil is not that good for those of us as Nigeria and Nigerians who depend on the sales. Most countries of the world are powering their vehicles with electricity, my bet is that in the next five years all those vehicles will be going electric.
“When that happens, what do we do as a country of 200 million people and counting. So will we be counting on NEPC to lead the charge in that direction,” he urged.
While urging NEPC to do more, saying, “I would have like to see a situation whereby now if we are doing 70, 80% dependence in terms of crude oil sale to the National income, we should be doing about 35% minimum non-oil export but I don’t think we are anywhere close to that. So these are the challenges that you have as NEPC and our role as legislators is to serve as catalysts, Hon. Fakeye stressed.
While speaking, NEPC CEO, Barr. Olusegun Awolowo solicited for the intervention of the National Assembly on the full implementation of the 10% NIMASA Freight Collections being the only statutory source of fund for the Council, noting that since December 1992, it has never been implemented despite the positive directives of Mr. President, Attorney General of the Federation and the National Assembly.
Barr. Awolowo who reiterated the Council’s resolve towards resolving issues bothering on the outstanding payment of Export Expansion Grant (EEG), disclosed that over N50 billion worth of EEG was disbursed annually to exporters, adding that there was the need to Institute payment of 3% of the value of every EEG payable to a beneficiary as a source of revenue to NEPC to offset the cost of administering the grant.
According to him, efforts are underway to increase Nigeria’s cocoa which currently stands at 300,000 metric tones of $2 billion out of the $80 billion revenue being generated by European countries which cocoa is being exported to and raise the revenue of 22 non-oil products that could generate up to $30 billion yearly.
He added that Nigeria could also take advantage of the $150 billion petrochemical global markets by selling its abundance petrochemical products as well as $31 billion palm oil market which countries like Malaysia and Indonesia leverage on.
Barr. Awolowo also unveiled the Council’s plan to increase Nigeria’s revenue by extra $150 billion (minimum) through the exportation of Palm Oil.
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