The Federal Airports Authority of Nigeria (FAAN) set up a committee last year with main objective to boost exports through air freighting with emphasis on increasing the export of agri-produce which is in high demand in many parts of the world with a major objective to make Nigeria number one exporter of perishables and other exports in Africa.
The Aviacargo Roadmap Committee was the offshoot of the Chinet Aviacargo conference held in Lagos last year. The Managing Director of FAAN, Captain Rabiu Hamisu Yadudu was inspired by the deliberations at the conference and he decided to set up the committee and made the organizer of the conference, Ambassador Ikechi Uko the Coordinator of the Committee.
On Monday the Committee went on facility tour of the cargo terminal of the Mortala Muhammed International Airport (MMIA), Lagos and the aim of the tour was to ascertain from major cargo handing companies the volume of exports and the challenge they face in export of products and farm produce. They visited Skyway Aviation Handling Company Plc (SAHCO) and the Nigeria Aviation Handling Company Plc (NAHCO) and the operating headquarters of the Nigeria Customs Service (NCS) at the cargo terminal.
The coordinator of the Committee, Ambassador Ikechi Uko during the tour explained that the Aviacargo Roamap Committee was set up by the Managing Director of FAAN and disclosed that currently despite Nigeria’s population and huge imports it makes, the country remains number five in terms of cargo exports by African countries; yet, Nigeria is the biggest economy in Africa with the highest population in the continent. Ironically the African country that is number one in exports has economy the size of Lagos state, “so we want to be number one in the next three years,” he said.
Ambassador Uko explained that the Committee has done a lot of work inside by carrying out research and brainstorming on the issues germane to the objective of the Committee but has now decided to come out to further the work of the Committee.
“We want to grow Nigeria’s export in a way that our growth rate will surpass other countries, starting from the short term (one month), mid-term (six months) and long term (three years),” Uko said.
In his welcome speech, the Group Managing Director and CEO of NAHCO Plc, Indranil Gupta, expressed optimism about Nigeria increasing its volume of agriproduce within the shortest available time and spoke emphatically on the need for Nigeria to target Africa as huge potential market.
“In terms of potential and in terms of perspective from the importers the importers, Nigeria has a huge potential. But in terms of requirement, all of us are impacted by the current account deficit and the imbalance between import and export. And the fact that exports are heavily dependent on petrol chemical. Nigeria needs to look within to see what we can export to the larger global consumer base but also within Africa. The very key one is within Africa. If we just look at our neighbourhood, the Francophone countries, almost all of them are 99 per cent dependent on imports and imports which are primarily done from Europe and America.
“And a lot of those imports which are about 40 per cent to 50 per cent are being created in Nigeria in excess. So, Nigerian economy, Nigerian manufacturers have a lot to contribute to the immediate neighbourhood and the larger continent as well. We have to enable and expose the manufacturers, the growers, the farmers to this opportunity. And once they are aware of this opportunity, we need to extend the function of the state and industry to get together to create the right policies and right infrastructure, which will then enable this trade to happen,” he said.
Gupta stressed that Nigeria should take advantage of all the policies made to enhance trade in Africa, including that of ECOWAS, African Continental Free Trade Area (AFCTA) and others.
“So, in terms of those policies, they are available. What we now should look at in terms of Nigeria’s Federal Government, we should look at micro policies, what can enable or what can incentivize the industry to fill up those gaps. This is a gap no doubt. The gap is 1 is to 9 in terms of import. Lets say manufactured products in Nigeria and exported outside, be it agro products, perishables, cashew, etc, have been severely exploited. But there are others which are not that well organized. For example, yam, Ugu leaves, Sheabutter. I know 65 per cent of oil consumption is done from Sheabutter, which originates from Nigeria. But how much of that is sent out through Nigeria’s export terminals? And how much of that is moved through other means into neighbouring countries and exported from there, is something which will give us an idea as to where we need to work in terms of policy and infrastructure creation,” he said.
He said that NAHCO is doing a lot of work with Nigeria Export Promotion Council (NEPC) under the guidance of FAAN, remarking that the Managing Director of FAAN was right in saying that the Committee should draw up an action plan which has a list of items to be done in one month, a quarter, and six months, adding, ‘that is the way to go.”
“What we need to put together now are some of the key things that have major impact on export. And two things I can think of are: the functioning of customs 24/7. I know it is a big thing to look at because it is a nationwide impact but it is a policy. So that is something which can help a lot, especially when we are trying to push perishables. Perishables means that they have shorter shelf life. And any amount of shelf life that can be saved by way of reducing time in processing, it will be a big help. The second is, uptake of technology. We have seen in the finance world, how technology has helped Nigeria bridge the problems that we have had in the past. I think technology can be a big up spin in this. As an industry, we need to look at how we can embrace technology and help ourselves. So, if I want to sum up what I want to say, I am very, very optimistic and very, very hopeful about the potential of Nigeria. The potential is there for everyone to see. Nigeria has the largest economy, the largest consumer base. The manufacturing and agric industries are progressing and they have the potential to fill up the gap in almost all of the African countries, be it Francophone or Anglophone. It is just about creating the enabling environment and it should be there. So, the aviacargo committee is a good initiative, it is a great initiative and I completely support it,” Gupta said.
Also the Managing Director of SAHCO Plc, Basil Agboarumi said that there is money in air cargo but the system needs improvements and expressed confidence that the Committee would bring the desired change in the plan to boost exports from Nigeria, adding that Nigeria has huge potential to export more farm produce and manufactured products for the highly sought after foreign exchange.
THISDAY
