An analysis of the financial statement of some manufacturing companies quoted on the Nigerian Exchange reveals their revenue mix includes over 98% local sales while just 2% was from exports.
Nigeria’s export revenue has increased but is still relatively low, standing at $4.8 billion in 2022, indicating the challenges in boosting export potential. Despite government policies to encourage exports, businesses struggle to generate significant export revenue and rely heavily on the domestic market.
President Buhari’s administration has for years introduced policies to encourage exports in line with its forex revenue drive. However, businesses continue to struggle to generate significant export revenue as they rely on the domestic market for much of their revenue sources.
The Central Bank has also introduced several policies such as the RT 200 to encourage local exports of goods in exchange for forex. This has also proven futile. The heavy reliance on the domestic market indicates that most companies are primarily focused on meeting the demands of local consumers rather than exploring international markets.
Some of the factors that hinder Nigeria’s export potential includes poor infrastructure, high cost of production, low-quality standards, trade barriers, and insecurity.