Unlocking Nigeria’s export potential

Although Nigeria is endowed with abundant agricultural resources, it has, at least since the discovery of oil in the 1960s, struggled to boost its economy through the promotion of commodity exports. If the hike in food prices and the steady devaluation of Nigeria’s currency have reminded us about anything, it is the importance of an agricultural policy that promotes commodity exports and achieves food security simultaneously.

Before anyone considers this proposition unattainable, it is worth recalling the successes of the various regions in the 1950s and 60s. Personally, my foray into cashew exports in 2016 serves as a testament to the immense opportunities that lie within the agricultural sector.

Sadly, challenges such as limited value addition, global price fluctuations, and bureaucratic hurdles have hindered the sector’s full potential. Hence, I’m advocating for policies that support and enhance commodity exports, as a means of earning significant foreign exchange and wealth creation.

Take cashew for example. The Global price of cashews has surged to N1,500,000 per tonne from N550,000 only a few years ago, signaling strong global demand. But despite this price increase, Nigeria is falling short of maximizing the full value chain while losing out on significant foreign exchange earnings. Even worse is that given the current inflationary pressures, local processing for products like cashew snacks is under severe threat of shutting down.

Since the challenges are obvious and persistent, I’d focus on a few solutions that would lead to beneficial outcomes for both farmers and the Nigerian state.

Given the complexity of Nigeria’s export processes, coupled with bureaucratic hurdles and delays in cargo transportation which affect product quality, it is imperative to first create an Export Friendly environment that prioritizes efficiency. impeded progress in this regard. Such an environment will stimulate a thriving commodity export sector and unlock the full potential of commodity exports.

Admittedly, the Federal Government plays a crucial role in driving a commodity export policy, but achieving the desired outcome will require coordination with state and local governments. Without the active participation of state governments in pursuing policies and legislations that support local farmers very little will be achieved by the federal government.

Hence, I advocate for strategic investments by state governments in agriculture and policy alignment with federal government initiatives that support commodity exports.

Additionally, there must be a concerted effort to encourage local procession. Not only for its value addition but because of the job opportunities it creates locally.

Therefore, the government must go beyond merely passing legislation that encourages local processing and should go a step further in addressing the macroeconomic factors that make local processing inefficient and unsustainable. This will require strategic intervention in creating access to cheap funding for local processing, provision of targeted energy subsidies, and continuous investment in human capital development.

Diversification is no longer a fancy option but a pertinent necessity. Hence, the promotion of policies supporting commodity exports, particularly in the cashew or Cocoa sector, is crucial for Nigeria’s economic development. With the naira losing its value, coupled with our desperation to boost foreign exchange earnings, we must seize this important opportunity to turn the corner.

Not forgetting that our economy has struggled to create jobs or improve real wages over the last decade. I strongly believe that a thriving export sector will not only enhance foreign exchange earnings but will also create jobs and empower citizens, contributing to the overall growth and prosperity of the nation.