NEPC Reports $1.791bn Surge in Non-Oil Exports as Nigeria’s Economic Diversification Drive Gets Boost from PAPSS and AfCFTA

Nigeria's push to diversify its economy from oil dependency gained fresh momentum in the first quarter of 2025, with non-oil exports of almost 25% compared to the same period last year.

According to the Nigeria Export Promotion Council (NEPC), the country recorded $ 1.791 billion in oil exports between January and March 2025-from $ 1.436 billion in Q1 2024.

Director of Council General Dr. Nonye Ayeni, revealed during the public presentation of the first quarter development report on the performance of oil exports in Abuja on Monday. He described the uprising as a promising signal of growth in the Nigerian export agenda.

“In the first quarter of 2025, a total of 197 unique products were exported,” said Ayeni, a clear improvement from 162 products recorded in Q1 2024. The list includes goods and semi-processed goods, industrial extract, and a wide range of agricultural goods.

Cocoa and its derivatives – cocoa butter, cocoa liquor, and cocoa cake – the dominant export, which makes up 45.02% of the total. Urea/fertilizer followed with 19.32%, while cashew nuts cost 5.81%. Other major products include sesame seeds, soya bean foods, rubber, gold dore, aluminum ingots, and brass ingots.

The amount of exports also increased dramatically. According to the NEPC, Nigeria sent 2.416 million metric tons of non-oil products to quarter-a staggering 243.44% increase from 1.937 million metric tons reported in Q1 2024. Dr. Ayeni said the jump indicates that more stakeholders tap into the expansion of the non-oil export landscape.

Corporate exporters such as Indorama Eleme Fertilizer and Chemical LTD, Starlink Global and Ideal LTD led the charge, contributing 12.07% and 10.00% respectively to the total cost of exporting.

Boost from paps and regional integration

While exports have featured a growing confidence in the Nigeria's non-oil sector, they also reflect the broader efforts of the Ball Administration to embed Nigeria more stable in regional and continental trade frameworks.

One of the main columns designed to support this effort is the Pan-African Payment and Settlement System (PAPSS), a cross-border financial infrastructure designed to facilitate payments to local currencies throughout African countries. Paps allow businesses to properly resolve transactions, reduce costs, and reduce money risks by eliminating the need for third-party currencies such as US dollars in the intra-Africa trade.

The NEPC report noted that Nigerian exports to 10 EcoWas countries grew significantly – up to $ 63.060 million in Q1 2025, an increase of 223.10% from $ 19.517 million recorded at the same time last year. Exports to other African countries have risen $ 32.732 million, representing 1.83% of total non-oil exports.

Officials believe that there will be improvement in the next quarter due to the Papss initiative, which is promoted as a major lever under the Africa Continental Free Trade Area (AFCFTA). The African Export-Import Bank (Afreximbank) launched in collaboration with the African Union and AFCFTA Secretariat, PAPS aims to agree with trade payments, improve liquidity, and strengthen economic integration throughout the continent.

Through the Paps, Nigeria is self -positioning to achieve AFCFTA's goal of creating a single market of more than 1.3 billion people with a combined GDP of over $ 3 trillion. In practical terms, this can mean faster transactions, lower banking fees, and improved competition for Nigerian exporters within the continent.

Dr. Ayeni said the NEPC is working near the Federal Ministry of Industry, Trade and Investment to encourage the implementation of export-focused initiatives. This includes scaling trading facilitates, alleviating exporting documentation, improving logistics infrastructure, and expanding support to small and medium-scale exporters.

In January, the NEPC reported its highest annual annual export of non-oil to its 49-year history-rising from $ 4.517 billion from 2023 to $ 5.456 billion in 2024, an increase of the year 20.77%. Q1 2025 numbers suggest that the country can be the course to surpass last year's numbers if the current momentum is preserved.

“The Council's approach is aligned with the national agenda to diversify the Nigeria economy, reduce the excessive reliance on oil revenues, and develop a more sustainable, economic-driven economy,” Ayeni said.

Analysts say that by incorporating exporting exports with tools such as paps and strategic contact with AFCFTA, Nigeria is slowly beginning to move the structure of its trade relations-from oil exports centered on a wider portfolio of added value products in many African markets.