The rising focus on export markets
The continual search for ways of reducing huge inventories and increasing capacity utilisation have largely endeared the country’s manufacturers to securing vital export markets for their products.
Rather, than always grumble over the alleged dumping of imported products on the local market, the rising focus on oversea markets is commendable and a market strategy that should endure as it is in the direction of a worthy future for the country’s industrial sector.
The acceptability of Nigerian products across various markets in the globe is being driven by improved competiveness of locally manufactured goods, which is a direct result of a deliberate increase in product quality, design and affordability.
Central Bank of Nigeria (CBN) data show impressive exports performance for Nigeria’s manufacturers. For instance, Memuda Industries sold $82.3 million worth of finished leather to Italy in 2012, emerging the 4th biggest non-oil exporter, compared with $10.6 million worth of the same item sold overseas in the preceding year.
Multitan, also a key player in the tanning sector, had an export value of $36 million, from $3 million reported in the preceding year. Its export destinations have been Europe, West and Central Africa.
For Dufil Prima Foods, the company revealed that the company’s exports to the West African and other markets in 2013 were worth $50 million, and about 90 percent of the company’s raw materials were sourced locally.
Everest Metal Ltd, a key player in aluminium and lead, earned $33.7 million in exports in 2012, according to the CBN data. This compares positively with $10 million gathered in the preceding year.
Dansa Food Processing Limited, maker of fruit juice and bottled water, had its exports rise by $32 million through the sale of Gum Arabic to France and Germany, while Dangote Agrosacks Ltd, part of Dangote Group and maker of woven and laminated polypropylene sacks, realised $0.39 million from playing in the Central, West, and East African markets, the CBN data show.
Similarly, West African Cotton Company Limited, a player in the textile and apparels sector, found its markets in Indonesia, Germany and Vietnam. Cumulatively, its total exports to these countries were $29.8 million in 2012, as against $9.4 million in 2011.
Sapele Integrated Industries, a company which processes crumb rubber, in 2013 also exported nearly 100 percent of its product to Bridgestone Tyre Company, one of the largest tyre companies in the world, with offices located in Spain, Italy, Poland, Japan, and other parts of the world.
Other key exporters that are discovering external markets include Chi Limited, Juhel Pharmaceutical, Asia Plastics Industries, British American Tobacco, Emzor Pharmaceuticals, Flour Mills of Nigeria, among others.
“Nigerian local products are competitive in terms of quality and standards in African markets, especially in Central and West African markets,” said Manufacturers Association of Nigeria Export Group (MANEG), headed by Tunde Oyelola, in a statement released to BusinessDay.
“Our products are everywhere in these markets. Nigerian manufacturers have new markets in East and Southern African markets. We are also in many European and American markets,” MANEG said in the statement.
To continue this remarkable and commendable stride in exports, manufacturers should deepen their understanding of the consumer cultures existing across countries and peoples whilst local export support and financing institutions are urged to always provide the enabling schemes that will continue to provide incentives for exporters.