MMS PLUS NG – Maritime, Aviation, Business, Oil and Gas News Online Newspaper with coverage in Maritime, Oil and Gas, Aviation, Power and Energy as well as Financial News
The link between trade expansion, particularly exports and economic growth is one that is well understood and exploited by many developed countries. This is because there are various ways through which export expansion can generally contribute to an increased economic growth.
Since Nigeria found itself in an economic crisis, the export agenda has come to the front burner as increased export is expected to positively impact on the aggregate output of the nation thereby relaxing the foreign exchange constraints.
The Federal Government can make plans to diversify the economic base from now till eternity, but such plans would not leave the drawing board if a concerted effort were not applied towards the production of these goods and services.
The concessionaire of the Lagos International Trade Fair Complex, Aulic Group of Companies in collaboration with the Kirikiri Lighter Terminal (KLT) Customs Command has initiated plans to establish the Nigeria Export Trade Hub (NETH) at the Lagos Trade Fair Complex.
The project promises to guarantee an export boom in the nearest future by providing a one-stop shop where all necessary export facilities and requisite agencies are domiciled. Most times, producers of export products would not be able to produce goods in volume sufficient for profitable exporting but the new scheme guarantee a soft landing for micro exporters according to the organizers.
The key to profitable export commodity trading is to know how to negotiate favorable terms of trade, instruments of payments, trading policies and, of course, selling the products at a higher price than their cost price and the Nigerian Export Trade Hub (NETH) has made provisions for dissemination of such valuable information by the creation of offices for the Nigerian Export Promotion Council (NEPC), Nigerian Import-Export (NEXIM) Bank, Nigerian Investment Promotion Commission (NIPC), etc.
The Customs Area Controller (CAC) of the Kirikiri Lighter Terminal (KLT) T.B Aber said Nigeria has reached the end of the road with regards to its over-dependence on import which led to the current economic crisis.
Comptroller Aber who disclosed that he was the visioner of the NETH project noted that it would enhance the Customs revenue via export duty.
CAC Aber noted that the mandate he received from the Comptroller-General of Customs (CGC) Col. Hameed Ali (Rtd) to reform the KLT Command was what led him to think of new ways of increasing the revenue generated from the command.
“I am impressed that the Federal Government has started giving loans to promote exports and all sectors of the Nigerian economy would grow with the developments of this NETH project. Most of the problems we have in this country are because our business processes are not being transparent and people get scared in getting into export, but the Customs are beginning to get their acts right by creating the agenda for export”
“Nigerians have suffered so much in export to such an extent that people have neglected it but this is the key to transforming the nation’s economy. The new Customs management under Col. Hameed Ali (Rtd.) has encouraged us to do all we could to ensure that export thrives in Nigeria so that we can also earn foreign exchange via exports” Aber said.
Aber toldMMS Plusthat the major problem of low exports from Nigeria wasn’t just the lack of willingness on the part of Nigerians but the absence of a conducive environment for exports to thrive. He stressed that the project would increase the number of professionals involved in export and also expand their capacity even as employment would be guaranteed for many.
The NETH project which is to be sited on about 322 hectares of land, got the endorsement of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) when the National President, Dr. Bassey Edem led a NACCIMA delegation to visit the proposed site.
The National President of NACCIMA, Dr. Bassey was impressed with the NETH project, acknowledging that the project was in sync with the association’s goals for the nation.
Dr. Bassey said that NETH was strategic in providing the ideal export environment as well as the concept and infrastructure that would ensure that Nigerian manufacturers have the market access to market their goods.
“This project makes it much easier for the companies who are setting-up their businesses for export purposes. We can have them around and it would be easier for them to export their goods. Once this seamless process is guaranteed, the tendency is that the producers of raw materials from the farms and mines would produce more as a result of the increased demand.
The NACCIMA boss also added that the project would provide massive jobs and also ensure that the businesses and other primary producers thrive.
“At the moment this place looks like a ghost-town but in two or three years it should be beehive of activities. The Customs are playing a lead role in this but we have to work together to ensure that this project is a success. NEXIM, NEPC, NIPC, NACCIMA, Customs, Aulic Group, manufacturing companies, etc have to come together to make NETH work” he said.
Speaking withMMS Plus about the project, the Chairman, Aulic Group, Prof. Nick Ezeh said NETH is a project that promises to make more Nigerians billionaires as a result of the business opportunities that would accompany the project.
“It is the private sector that drives the Nigerian economy and the NETH is going to create diverse opportunities that would take the youths off the streets, open Nigeria to the international market, and enhance the nation’s manufacturing and packaging capacity. With NETH, we are reiterating the fact that Nigeria has to first produce, manufacture and export,” he said.
Prof. Nick stated that the private sector would develop more with this project and this will also lead to more revenue for the government through the Customs for instance.
According to him, the first thing is to produce, then add value before exporting to generate revenue.
“This is strategic to revive the nation’s economy and balance its level of import and export. It is high time we have more billionaires in this country enhance forex through our commodity exchange. Nigerians are very skillful so we want them to add value to their finished products and have an enabling environment to export” Prof. Nick said.
Prof Nick stressed that the idea of Trade Fair Complex which was built nearly forty years ago was laudable as it was a one-stop shop where Nigerians could show-case their products via exhibitions, but he emphasized that creating commercial activities within the complex was the best way to maximize the potentials of the complex.
“The NETH project has kick-off. The container containers discharged from imports would be arranged for export business and the e-platform that would allow for a seamless export processing procedure has also been developed. Another key development is the NACCIMA certificate of origin and we are grateful to have NACCIMA here today. NACCIMA has given its endorsement so the project has taken off. The next thing is the physical infrastructure which should begin soonest. The road network is already in place, so the export business is almost set” Prof. Nick said.
He also noted that there were more importers in the complex as a result of the Trade Fair and he explained that the availability of importers, commercial activities and the premises would only add to the uniqueness and viability of the NETH project.
According to Prof. Nick the project would equally enhance Nigerian producers, Nigerian manufacturers, Nigerian exporters and he commended the Federal Government for introducing export grants which he believed would make the export business dominate import.
By Kenneth Jukpor
