Recent data published by Statista has shed light on Nigeria’s services export sector, revealing a concerning disparity between its performance and the expectations of industry pundits.
Despite a global market value of $7.1 trillion, Nigeria’s services export value stands at a mere $4.41 billion as of 2022.
This figure, while substantial, falls significantly short of what many had anticipated, highlighting the untapped potential of the sector.
Industry experts had long held the belief that Nigeria’s services export sector was underutilized, especially given the absence of robust technology to capture ongoing activities in the industry.
Dr. Obiora Madu, the Director-General of the African Centre for Supply Chain, expressed concern over Nigeria’s reliance on external bodies for data on services export, emphasizing the revenue and opportunities lost as a result.
Dr. Madu equated the prospects of the services sector to that of oil, stressing the need for prioritizing it as a diversification focus akin to agriculture to bolster Nigeria’s overall export earnings.
Despite the establishment of the Service Export Unit by the Nigeria Export Promotion Council (NEPC) in 2006, he lamented that many Nigerians still remained unaware of the potential of services export, often confining export activities to products and commodities.
According to Dr. Madu, even the least developed countries are recognizing the potential of the services sector, which reportedly constitutes about two-thirds of global trade.
He underscored the importance of a comprehensive export policy and guidelines, noting that Nigeria’s current regulatory deficit hinders its ability to leverage its competitive advantages in various services sectors.
To harness the full potential of the services export sector, Dr. Madu emphasized the need to integrate services into the operations of Small and Medium Enterprises (SMEs), particularly in key drivers such as digitization, financial services, consulting, tourism, and transportation.
He highlighted Nigeria’s strengths in these sectors and urged for concerted efforts to capitalize on them.
As Nigeria grapples with economic diversification and seeks to boost its export earnings, the services sector presents a promising avenue for growth.
However, addressing regulatory deficits, raising awareness among stakeholders, and implementing comprehensive policies will be crucial in unlocking the sector’s full potential and driving sustainable economic development.
