3 CROPS TO JUMPSTART NIGERIAN AGRICULTURE.

Agriculture is a major industry in Nigeria in terms of how many people it employs in the country. Over 60 Million out of 200 Million people. Yet it only contributes around 21% of Nigeria’s GDP, the rest majorly dominated by Crude-Oil.

For a Country seeking to diversify its economy, more emphasis can be laid on improving the Agricultural sector of the nation in other to increase the economic fortunes of the country. The following 3 Industries can Kick-start that process.

OIL-PALM

In the 1960s, Nigeria used to be world largest producer and exporter of Palm –Oil, owning as much as 40% of the global market share. After the discovery of crude oil, and our economic focus shifted, Nigeria fell behind to countries like Indonesia, Malaysia, Thailand and Colombia, importing from them to bridge local demand. Ironically, these countries got their Initial seedlings from Nigeria.

From a peak of 800,000 Metric Tonnes per annum, to 325,000 Metric Tonnes production of Palm Oil Produce in 2019, Nigeria spends around $500 Million Dollars Annually on importing the produce.

In December 2019, the World Bank Price Index for Crude Palm Oil was $769.93 per tonne. Therefore the country lost about N90 Billion Naira that year importing a product it could produce itself. Worse still, the bank projects the country could loose N270 Billion Naira from 2020 to 2022 importing it. 

So what can be done? Firstly, Growing Palm Oil is a Long Term Project, therefore farmers could benefit from a mutual fund setup by the Government in meeting their obligations before harvest.

Southern Nigerian states, especially Edo and Delta, that have the idle climatic and geological conditions necessary for the healthy growth of the crops. Efforts should be concentrated rated there, as both State Governments have shown a willingness to contribute Thousands of Hectares for the cultivation of the crop.

Finally, the moribund Nigerian Institute for Oil Palm Research (NIFOR) needs to be revitalised. This is because New Varieties of the Crop needs to be Genetically Engineered as variants of the crop which are planted abroad are shorter, and produce more yield per bunch, which is what the Nigerian Variant should be emulated after.

COCOA.

Similar to Palm, Cocoa was a major agricultural export of Nigeria in the 1950s and 1960s. From being the second highest producer in the world with 420,000 tons in 1960s, and 192,000 tons in 2016 to 6th position, contributing only 0.05% to the Nations GDP.

Ondo, Ogun, Osun, Oyo and Ekiti account for 60% of the cocoa production in Nigeria. Other states include, Cross-River, Kwara, Ebonyi, and Abia.

In Nigeria, about 80% of the processed cocoa is sold as the natural Cocoa Beans or Pods, only about 20% is processed into Powder, Butter, Cake and Liquor before being exported.  

They are 8 Cocoa Processing Factories in Nigeria, with combined installed capacity of 150,000 Metric Tons per annum. Only 4 are functional, with processing capacity of 50,000 Metric Tons.

However they face challenges of Insufficient Capital, Irregular Power Supply, High Cost of Cocoa Beans, and Unfavourable and Ineffective Government Policies which limit their effectiveness.

So what can be done to improve Nigeria’s fortunes in the Cocoa Industry? After the El-Nino Weather Occurrence of 2015/16 which affected Cocoa Producing Countries, prices have gone from a peak of $3,390/metric ton to an average of $2,000/metric ton.

Cocoa similar to Oil Palm is a long term crop. Modern Variants of the seeds should be provided to farmers which are more resistant and bountiful. While proper processing, preservation and warehouse facilities should be provided. The Cocoa factories should also be revitalised.  

Most Cocoa Farmers are Old, as they are increasingly moving to other fields such as Mining and Rubber Plantations. Therefore, efforts should be made to not just keep them in, but also attract young people to the farms. 

The Nigerian Export Promotion Council (NEPC) should also reconstitute the market board, which protects the interests of Cocoa Farmers and Exporters in the International Market.

Cocoa is a crop that is always in high demand particularly from Western and European Countries. Therefore if adequately managed, could be a steady source of Income for the Federation.

RUBBER.

Following an unfortunate similar trend to other cash crops, Rubber suffered the same fate of neglect once the young Nigerian Nation had found Crude-Oil. 

Once the 4TH largest foreign exchange earner for the nation, today, most rubber plantations remaining in the country are the ones planted by former leaders Chief Obafemi Awolowo and Michael Opara.

Nigeria’s Rubbers Capacity has fallen from 130,000 Metric Tons at its peak, to currently about 55,000 Metric Tons. This has led to a $6 Billion Dollar Annual Loss to the nation. 

Rubber is a product that is used in virtually every industry, so the market is undeniably there. However, the Rubber Research Institute designed to develop Hybrid Rubber Seeds for Farmers has gone comatose. This needs to be revitalized.

Rubber is grown in states where the amount of rainfall is 1,800 mm to 2,000 mm per annum, eg Rivers, Akwa-Ibom. But even according to Ministry officials, both Federal and State Governments refuse to pay rubber attention, primarily because it is not a food crop.

Also, Most Rubber Trees are found in Crude Oil Rich areas, therefore there is little incentive for the working populace to focus on it. 

There is also currently a dearth of modern equipment necessary for converting the raw material into value added products of international standard.

Since Rubber Trees have a lifespan of over 30 years, but a gestation period of over 6 – 7 years. Government needs to create a way of supporting farmers over these long term investment.

There was once a time International Firms such as Michelin and Dunlop had operation in Nigeria, with huge investments in Rubber Production. Therefore, it is entirely possible for Nigeria to return to its glory days of Rubber Production, and all its attendant benefits.