Olam, Tulip, De-United Foods, Rubber Estates shining amid export challenges
Olam Nigeria, Tulip Cocoa Processing Limited, De-United Foods Industries Limited and Rubber Estates Nigeria Limited are among export-shining industries that have defied Nigeria’s tough environment to expand offshore operations.
These firms are bringing the much needed foreign exchange into Nigeria despite near absence of government support.
At the moment, the Export Expansion Grant (EEG), which could have been a source of support, is in limbo as exporters’ promissory notes worth over $1 billion lie on the table of the National Assembly without being discussed.
The EEG was introduced in 1986 to help exporters navigate through high production costs in order to make them competitive in the global market. But the grant has been suspended a number of times, with the latest being in 2013. The currency for the EEG today is the promissory note, which replaced the Negotiable Duty Credit Certificate (NDCC) used by the last administrations.
These firms are also facing peculiar challenges such as high production cost necessitated by unfriendly energy cost, consumer shrinking wallets across various markets, poor infrastructure and barriers to trade.
However, they have remained resilient, shipping out tons of products to various markets.
Olam Nigeria has invested in cocoa, coffee, edible nuts, spices, grains and feed, among others.
The company exported sesame seeds (Dhs) and fermented cocoa beans worth $110.892 million to India, Netherlands, Poland, Syria, United Kingdom, Singapore, Turkey, Jordan, Poland, and Japan in 2017, according to the Central Bank of Nigeria data.
Tulip Cocoa Processing Limited exported cocoa cake, pure prime pressed and cocoa butter worth $32.60 million to Netherlands, Mexico and Spain.
Similarly, De-United Foods Industries Limited gave a good account of itself, exporting $30.568 million worth of Indomie and Minimie noodles to Ghana, Cameroon and the United States of America.
As of 2013, De-United had been exporting Indomie noodles worth close to $30 million to the US, BusinessDay gathered.
Rubber Estates Nigeria Limited exported technically specified natural rubber (tsnr) and processed renl 20 estimated at $20.392 million to Spain, France, Italy, Poland Spain and Singapore.
But this is not all as many other firms gave a good account of themselves.
British American Tobacco exported various forms of cigarette valued at $145.48 million to Liberia, Guinea, Ghana, Cameroun, Cote D’ivoire and Niger.
Indorama Eleme Fertilizer & Chemicals Ltd shipped out granular urea in bulk valued at $69.815 million to Uruguay, Brazil and Argentina.
Indorama Eleme Fertiliser & Chemicals Limited got $1 billion from the International Finance Corporation (IFC) in June for the construction of a new fertiliser plant in Nigeria.
Atlantic Shrimpers Limited shipped out $38.397 million worth of sea frozen shrimps and crabs to the Netherlands, China (Taiwan), United States Of America and Vietnam.
Dangote Cement Plc exported Dangote Portland Limestone Cement (42.5R) to Niamey, Niger Republic, Togo and Ghana estimated at $21.496 million worth of grey ordinary
“Beside our continuous expansion, we also export to counties like Ghana, Benin and Togo. These are sources foreign exchange for our dear nation. Where ever we operate we operate as economic partners because we add value to the economy by creating employments,” Joseph Makoju, group managing director of Dangote Cement Plc, said on July 4 during a plant facility tour by officials of the Standards Organisation of Nigeria (SON).
Also, Guinness Nigeria exported Malta Guinness and Guinness FES valued at $15.06 million to the United Kingdom, Ghana and Cameroon.
Beta Glass shipped out bottles estimated at $14.134 million to Sierra Leone, Ghana, Liberia and Cape Verde.
Flour Mills Of Nigeria exported recycled polypropylene black, wheat bran pellets, dried raw cashew nuts and plastic pvc valve bags to the United States Of America, Morocco and Vietnam.
Friesland Campina Wamco Nigeria exported $3.87 million worth of Full Cream Milk Powder Peak (12x400g), Full Cream Unsweetened and Evaporated Peak Milk (96x30g) to Ghana and Sierra Leone.
“As a company, we will continue lead in steering economic solutions in the dairy sector and will continue to play a key role in the on-going efforts to improve and maximise the potentials of dairy farming in Nigeria,” Ben Langat, managing director of FrieslandCampina WAMCO Nigeria PLC, said at Dairy Farmers’ Day held at Iseyin , Oyo State, in December 2017.