For decades, Nigeria’s economy has been closely tied to the fluctuations of global oil markets. Since the discovery of oil in 1956, it has been the main source of revenue and dominated exports.
However, as the world moves towards greener energy and oil prices become increasingly volatile, Nigeria is shifting its economic focus.
Recent data from the Nigerian Export Promotion Council (NEPC) shows a turning point: non-oil exports increased by 6.26 percent, bringing total revenues to $2.7 billion in the first half of 2024.
This increase is an important step towards reducing the country’s dependence on oil.
Thus, the growth in non-oil exports, driven by agriculture, solid minerals, and manufacturing, highlights this change and points to a new direction for Nigeria’s economy. As these non-oil sectors grow, they indicate a shift away from an oil-dependent economy, changing Nigeria’s economic future.
According to the NEPC, non-oil exports reached $2.7 billion in the first half of 2024, up from $2.5 billion in the same period last year. This shift, supported by the focus on semi-processed products, marks a significant shift in Nigeria’s export dynamics.
During this period, total export volume amounted to 3.834 million metric tonnes, spanning 211 different products. These products ranged from agricultural commodities to items in the extractive industries.
“We are seeing the results of our diversification strategy, particularly through the ‘Operation Double Your Exports’ initiative,” said Nonye Ayeni, executive director and CEO of NEPC.
“This performance shows that Nigerian exports are gradually shifting from raw agricultural products exports to semi-processed and manufactured goods,” she added.
Agriculture Leads the Shift
Agriculture is at the forefront of this shift. Nigeria’s agricultural sector recorded strong growth in the first quarter (Q1) of 2024, with exports rising to ₦1.04 trillion—a 123 percent increase from the previous quarter and a staggering 270 percent rise compared to Q1 of 2023, according to the National Bureau of Statistics (NBS).
This surge was primarily driven by exports of sesamum seeds and cocoa beans, with demand particularly strong in Asia and Europe.
The momentum continued in the second quarter (Q2) of 2024, with the agricultural sector growing by 1.41 percent, while the oil sector’s contribution to GDP dwindled to 5.7 percent. This trend suggests that Nigeria’s economy is gradually diversifying, with agriculture positioned to play a pivotal role in its future growth.
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