Crude Dependency

Crude Dependency @P DATANG VISUAL Latest report from CBN shows that Nigeria still remains a mono-economy... Bouyed by historically high oil prices and supply disruptions from other OPEC members Nigeria exported oil & $90bn 3% = $3.2bn INFORMAL EXPORTS However, what is excluded from the non-oil export data is the size of the informal trade which happens be- tween Nigeria and its neighboring countries in West Africa. gas worth... of non-oil sector export is split as follows: Semi-Manufactured Products - Oil prices (pb) Bonny Light Reference* leather and processed skins 31% NIGERIA'S OIL Jul 2008 $138.95 Manfactured Goods 11% Estimated size: Apr 2011 $120.85 EXPORTS 2012 Other 3% $10bn FG BUDGET OIL PRICE BENCHMARK The hegemony of the petroleum sector on Nigerian exports exposes the country's finances to external shocks and associated Nigeria's population accounts for 50% percent of the ECOWAS sub-region. This provides ample potential for Nigeria to increase its service sector and manufacturing exports.... Sept 2012 Aug 2006 $75.16 Jul 2009 $114.25** $73.26 volatility of global markets... QUICK WINS to increase non-oil sector exports 1) Assembly of manufacturing parts for cars, equipment and machinery The United States accounts for one-third of Nigeria's oil exports has recently signalled a shift in their energy policy, from fossil fuel dependency to more renewable sources of Agricultural Produce - mainly cocoa beans, rubber, cotton, fish and shrimps 55% What happens if prices head and stay south? 2) Outsourcing hub for call centre operatives for Multinationals and indigenious companies oper- ating within the ECOWAS region energy. The non-oil sector accounted With rising unemployment among the Nigeria's youth demographic, the need for economic diversification has for the rest of Nigeria's exports 97% never been more pressing than now. New policies in education and vocational traning to enhance the competitiveness of the coun- try's large workforce need to be devised and implemented to rebalance Nigeria's dependency away from the oil sector... of Nigeria's total ex- ports originated from the Petroleum Sector... Source: Central Bank of Nigeria, Financial Times, US Energy Information Administration, OPEC, Thisday Nigeria, @BigldeasNG *Price of US Landed Cost of Bonny Light **OPEC Basket price for September 2012 @BIENGG budgfT @PATANG VISUAL @BIGNG Infographic designed by: in association with: IDEASI |||||||||||||| SEPTEMBER 2012