*Only favours few manufacturers -- MAN
*Increase due to Naira devaluation -- Analysts
Revenue from the export of manufactured goods from Nigeria rose by 118.33 percent to N749.52 billion in the first half of 2024 (H1'24) compared to N343.29 billion recorded in the same period last year (H1'23), available data has shown.
Analysts however attributed the apparent surge in export of manufactured goods to depreciation of the naira.
They noted that due to the continuous depreciation of the naira, some goods produced in Nigeria are becoming cheaper, while CFA franc - a legal tender in Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo - continue to appreciate in value.
Data obtained from the National Bureau of Statistics (NBS) also showed that export revenue of manufactured goods in H1'24 was 72.24 percent higher than the N435.15 billion recorded in the second half of last year (H2'23).
Increase due to devaluation - Analysts
According to Adeola Adenikinju, President of the Nigerian Economic Society, devaluation of currency helps to make export of goods cheaper.
"One of the reasons why countries devalue their currencies is to make exports cheaper relative to other goods so they can sell more," he said.
In his comment, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, supported the argument that the significant increase in exports could be attributed to the naira depreciation.
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"I think it is because of the naira depreciation. Devaluation normally creates opportunities for exports. And the surge in exports would have been more if it included the ones that are not officially captured. "There are a lot more incentives for exporters, not the physical ones but the ones inherent in the currency devaluation.
"Once you have this deprecation, the export opportunities increase because our goods are cheaper," Yusuf stated
Only favours few manufacturers - MAN
Meanwhile, Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said the devaluation of the naira only favours a few manufacturers that can export, noting however that production costs have increased.
"Their cost of production has increased since their raw materials are not totally from the third countries. The import duty is over N1,600 per dollar. So, the devaluation has caused terrible woes for many manufacturers," he said.
On his part, President of Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, while agreeing that countries often devalue their currencies to boost exports, he noted that for Nigeria, the increase in exports seems to be circumstantial and not as a result of deliberate effort of the government.
"The increase in exports is a natural consequence of the devaluation that occurred for other reasons, not deliberately caused by the government to increase exports.
"It is not a deliberate policy decision to devalue the currency to increase exports," Idahosa stated.
