In the past, Nigerians have suffered losses over failure to export their farm produce, but that narrative has changed as many agricultural produce now receive a boost with exportation to countries in Europe, America, Asia as well as other African countries. This analysis shows how Nigeria’s agro-produce has fared in recent times.
Nigeria’s agricultural produce exports in recent years have grown rapidly, with Europe, America and Asia being the major destinations.
The export of agricultural products to these countries now accounts for nearly 80 per cent of Nigeria’s total exports.
Agro exports surged to a five-year high in 2022 amid a local production push, according to a report by the National Bureau of Statistics (NBS).
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The data shows that a total of N598.2billion worth of agricultural products were exported in 2022, accounting for 18.5 per cent increase when compared to the figure recorded in 2021. This has, in no small measure, pushed the interest of Nigerians into export business.
Interestingly, countries in Europe have become very important markets for Nigerian exporters, thereby making demand for agro export to surge.
The major export markets of Nigeria in Q4, 2022 were Spain, The Netherlands, India, France and Indonesia, according to the NBS Commodity Price Indices and Terms of Trade (Q4 2022) report.
Federal government’s efforts targeted at encouraging both production and exports have contributed in no small measure to the sudden surge in shipments to the developed world.
Last Wednesday, the Customs area controller, Lilypond Export Processing Terminal in the Ijora area of Lagos, Mohammed Babandede, said the command processed a total of 118,184.96 tonnage of non-oil exports between January and March of 2023.
Babandede put the Free On Board (FOB) value of the total export within the three months under review at N86.53billion.
This is against the N34.72bn of export which Apapa command, the biggest seaports in Nigeria, handled in 2022. This is against the N30.2bn (FOB value of $82.1m) it also handled between January and March 2021.
Nigeria’s quest to increase its export earnings received a significant boost in the fourth quarter of 2022 with the establishment of the Nigeria Customs Export Processing Command in Ijora, Lagos, with the command becoming a one-stop-shop for agro-export.
According to the NBS report, Nigeria exported N5.76trillion worth of items in 2021 and that increased in the first quarter of 2022 by 23.13 per cent, while imports declined by 0.67 per cent.
An analysis of the NBS Q4 2022 in terms of trade report indicates that the All-Commodity Group Export increased marginally by 0.04 per cent points between November and December 2022. This was majorly due to a decrease in prices of papermaking material; paper and paperboard, articles, live animals; animal products and an increase in the price of wood and articles of wood, wood charcoal and articles.
Some of the top export destinations are Spain, The Netherlands, France, India,and Indonesia. For instance, Nigeria exported major agro-produce to The Netherlands in the last quarter of 2022. It exported superior quality cocoa beans valued at N43.91 bn and standard quality cocoa beans worth N3.91bn to the country. Nigeria also exported commodities to Indonesia during the period; they are superior quality cocoa beans (N7.99bn) and standard quality cocoa beans (N1.86bn).
The Nigerian Customs Service (NCS) was among the agencies that provided the data on export to the NBS, the report noted.
The role of new export terminal
Briefing newsmen, Babandede, said that within the three months of operation, the command was able to process non-oil exports with a total tonnage of 118,184.96.
He said the command’s revenue profile showed that it processed export goods worth N86.426bn, which is equivalent to a free-on-board value (FOB) of $204,656,119.04.
He listed the agricultural produce processed to include cocoa beans, cashew nuts, sesame seeds, hibiscus flower, soya beans and ginger.
“Other items exported are mineral resources, such as lithium ore, manganese ore and zircon sand, to mention few.
“Manufactured goods exported are instant noodles, cosmetics, cigarettes and beverages,” he added.
Babandede noted that cocoa beans top the list on the export chart, while cashew nuts, sesame seeds, hibiscus flowers, soya beans and ginger followed in that order.
He said the interesting aspect of the export list is that there had been a growing demand for Nigeria-made cosmetics and furniture by countries in the West Africa sub-region.
He said the Lilypond Export Command, despite being a new command, recorded some major achievements, noting that the new command has drastically reduced delay in export processing and as a result of which has made the business of export effective and efficient since all agencies are domiciled in one place as a one-stop shop.
“It has reduced congestion along the access roads to the port and inside the port terminals, giving space for import containers, and that has given rise to a reduced cost of export business. It has reduced the issue of contract cancellation and the issue of pilfering of cargo has been eliminated.
“Released containers can access the port within 48 hours for loading onto awaiting vessels. The command, in collaboration with shipping lines, has reduced the turnaround time of a vessel, which decreases the cost of shipping
“Lilypond Export Command has completely erased the issue of rejection and return of our agro-produce, which is usually caused by delay and lack of requisite phytosanitary certificates,” he added.
Recall that the Nigeria Customs Service, in collaboration with the Nigerian Ports Authority, in August 2022, approved the establishment of export processing terminals (EPTs) with the mandate to undertake stuffing, examination and document processing for non-oil export cargos accessing Lagos ports by road, rail and barges.
“Its establishment is geared towards fast-tracking export businesses for quick turnover to ensure proper documentation and repatriation of export proceeds back to the country to decongest the ports and all the roads leading to them,” he explained.
To achieve this, Lilypond Export Command was created and commissioned on November 1, 2022, and since its establishment, the controller said there had been meetings with various stakeholders comprising terminal operators, exporters, licensed agents, freight forwarders and shipping lines.
To drive more exports, the permanent secretary in the Ministry of Industry, Trade and Investment, Dr Evelyn Ngige, recently announced the launch of the Domestic Trade House in China. This would boost exports to the Asian region.
She said, “I am happy to inform you that the Nigerian Export Promotion Council (NEPC), in collaboration with relevant stakeholders, has launched a Domestic Warehouse Initiative, which is a one-stop facility or terminal for storage of products, packaging and branding in preparation for ultimate transportation to ports.
“This initiative was set up to eliminate logistics challenges, which our exporters faced. The export warehouses are critical in fostering non-oil trade exports and reducing challenges experienced by exporters.”
Dr Ngige further noted that China was deliberate because, through the Export Trading House, the volume of export and feasibility of seeing Nigeria’s products and market share with countries will be enhanced.
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