How Nigeria plans to end informal exports

The Nigerian Export Promotion Council is urging informal exporters to formalize their operations to maximize benefits. However, the directive from the Central Bank of Nigeria for banks to disclose details of exporters who haven't repatriated export proceeds has sparked debates. Akintunde Sawyerr, the Executive Secretary of the Agricultural Fresh Produce Growers and Exporters Association of Nigeria, shed light on the hurdles faced by exporters in Nigeria. Sawyerr highlighted the myriad challenges faced by exporters in formalizing their operations. He noted that multiple agencies are involved or seek involvement in the export process, leading to potential obstacles from the farm to the airport or seaport. These hurdles pose risks that deter many exporters, compelling them to operate discreetly. Convincing them to declare their activities becomes daunting, especially when they perceive secrecy as key to success. Building confidence in the system and ensuring transparent dealings are crucial in fostering compliance among exporters. In terms of finding a middle ground, Sawyerr emphasized the importance of data in enhancing operational efficiency. While acknowledging the significance of data aggregation for informed decision-making, he underscored the need for real-time data delivery to adapt to rapidly evolving global trends. Ensuring data confidentiality and demonstrating its value through intelligence-driven decisions are vital in incentivizing exporters to partake in formalizing their operations. The discussion also delved into the necessity of addressing inefficiencies in the export value chain before coercing informal exporters to formalize operations. Sawyerr emphasized the interdependency between data availability and process optimization, asserting that comprehensive data on supply chain operations is essential for identifying and rectifying bottlenecks. The challenge lies in fostering trust among stakeholders to share data without fear of repercussions, as transparency is pivotal in streamlining the export value chain. Sawyerr's insights shed light on the complexities involved in encouraging informal exporters to transition towards formalizing their operations. The delicate balance between data transparency, operational inefficiencies, and stakeholder trust underscores the multifaceted nature of the issue. As Nigeria aims to enhance its export ecosystem and boost regulatory compliance, collaborative efforts and incentivization strategies are paramount in driving operational enhancements within the export sector.