CPPE Highlights Gaps in Nigeria’s GDP Data on International Trade
LAGOS/Nigeria: The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the inadequate reflection of international trade contributions in Nigeria’s Gross Domestic Product (GDP) data. CPPE Chief Executive Officer, Dr. Muda Yusuf, addressed this issue at the Maritime Reporters Association of Nigeria (MARAN) breakfast meeting on Wednesday in Lagos, themed ‘Trade Facilitation and President Tinubu’s Economic Agenda: Matters Arising’.
Dr. Yusuf emphasized that Nigeria has yet to fully appreciate the economic significance of international trade. “Trade issues have not attracted the level of attention commensurate to their contribution to the economy,” he stated. He noted that while the trade sector accounted for 16% of Nigeria’s GDP in 2023, amounting to over N27 trillion, this figure predominantly reflects domestic trade. The maritime sector, representing the broader blue economy, is not adequately captured.
Yusuf expressed hope that the rebasing of the GDP would correct this oversight. “The NBS data shows water transport, which contributed a mere N12.6 billion in 2023, representing 0.01% of GDP. This cannot accurately reflect the maritime sector’s contribution,” he said, highlighting that the sector handles over 95% of Nigeria’s international merchandise trade, valued at N71.9 trillion in 2023.
He underscored the importance of trade facilitation, which aims to minimize impediments and costs in the international trade process. Yusuf pointed out that addressing costs related to corruption, levies, taxes, shipping, demurrage, and storage is crucial. He called on the Nigeria Customs Service to play a pivotal role, noting that the recently launched Time Release Study (TRS) could identify delays and bottlenecks in cargo clearance. He also highlighted the Authorised Economic Operators (AEO) program, which rewards compliance in cargo declaration processes and facilitates speedy cargo release, thereby boosting trade.
Echoing these sentiments, Executive Secretary of the Nigerian Shippers Council (NSC), Mr. Pius Akutah, represented by Mrs. Ogbonnaya Austina, an Assistant Director of Consumer Affairs, reaffirmed the council’s commitment to promoting port and transport infrastructure to facilitate trade. Akutah highlighted the alignment of the topic with the Federal Government’s Renewed Hope Agenda, which aims to facilitate trade and bring prosperity to Nigeria.
Akutah also noted the President’s decision to unbundle the Federal Ministry of Transportation into the Ministry of Transportation and the Ministry of Marine and Blue Economy for better service delivery and revenue expansion. “We assure MARAN of our continued partnership to facilitate trade and related activities,” he said.
Mr. Alban Igwe, a member of the Importers Association of Nigeria (IMAN) and the United Nations Advisory Group on Trade and Transport Locations, emphasized the strategic importance of trade facilitation for Nigeria’s economic recovery. He defined trade facilitation as the simplification, standardization, and harmonization of procedures and information flows required for the efficient movement of goods and payments.
MARAN President, Mr. Godfrey Bivbere, expressed concern over the diversion of cargo to neighboring ports due to their efficient services, which often leads to smuggling. He also critiqued the Tinubu administration’s economic policies, describing them as overly combative and potentially disruptive to the fiscal and macroeconomic system. Bivbere urged a balanced approach to reforming the national revenue system, considering Nigeria’s weak export base and import dependency. He advised the government to focus on reducing spending and administrative overhead costs.
