Export Sales Increases by 77% Amid Forex Reform

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Three major players in Nigeria’s consumer goods industry – Unilever Nigeria Plc, Cadbury Nigeria Plc, and Okomu Oil Palm Plc – have witnessed a remarkable uptick in their export sales, nearly doubling within a year.

According to BusinessDay’s analysis of the latest unaudited financial statements, the combined revenue from exports for these companies soared by 77.4 percent to N15.5 billion in 2023 from N8.75 billion in the previous year.

Experts attribute this increase to the foreign exchange reform, which has led to a more than 60 percent depreciation of the Nigerian currency. The devaluation has made Nigerian goods more affordable for countries, particularly in Africa, with stronger currencies, thereby boosting export sales for these consumer goods manufacturers.

Toye Folosho, a representative of the Manufacturers Association of Nigeria (MAN), noted that while the devaluation has favored exporters, it has also raised production costs due to increased import duties. The import duty, approximately N1,500 per dollar, has posed challenges for manufacturers sourcing raw materials from third countries.

In response to these dynamics, stakeholders like Erewa-Meggison of MANEG advocate for direct engagement between the government and manufacturers through the Manufacturers Association of Nigeria.

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