According to data from Food and Agricultural Organization (FAO), none of the top ten crops produced in Nigeria is among the top ten agricultural products exported in Nigeria.
Cassava tops other crops in annual production in 2019 with 59.2 million tonnes of cassava produced in 2019 according to Food and Agriculture Organisation (FAO) data. Of this quantity, only 182 tonnes were exported from the country, generating a meagre revenue of $101 thousand.
Yam is second on the list of top crops produced in Nigeria, 50.1 million tonnes was produced in 2019 out of which zero was exported. All 50.1 million tonnes were consumed locally.
A total of 11 million tonnes of maize was produced in 2019 and only 1,412 tonnes was exported generating a total of $2.1 million.
Despite these agricultural commodities recording the greatest output in 2019 per FAO, unsurprisingly, none of them ranked in the country’s top export. Data on agricultural commodities export by the National Bureau of Statistics (NBS) shows that sesame seed topped the highest agricultural export in both 2019 and 2020.
Sesame seed generated revenue of N27.8 billion in 2019 and 27.3 billion in 2020. Fermented cocoa beans ranked second in both years, fetching N24.7 billion in 2019 and N6.7 billion in 2020.
Sesame oil, which was fourth in 2019, generating N2.2 billion, jumped to third in 2020 with an N4.4 billion revenue.
If Nigeria had exported all of its top three (3) agricultural produce, it would have earned the country significant revenue. Yam, the least exported produce could potentially bring in revenue that is higher than sesame seed, the most exported farm produce in Nigeria.
Why the low export?
Nigeria is the largest producer of cassava in the world, producing one-fifth of the world’s output. It is also the highest consumer of cassava, consuming 61 million tonnes in 2019. Despite this, the country is yet to meet sufficient domestic composite demand for cassava. There still exists a supply gap in the demand for cassava starch (290 metric tonnes) and flour (485 metric tonnes) in Nigeria.
Yam, the second-highest crop behind cassava, is widely consumed locally. An NBS survey shows that only 43% of households are likely to sell their harvested yam products. This shows that most of the yam cultivated is consumed by farmers first, then the remaining is sold in local markets.
The demand for maize locally is still high and above local production. Data on local consumption of maize in 2019 shows that the country’s production is less than what was actually consumed. Where the output was 11000 metric tonnes, total consumption stood at 11250 metric tonnes.
Whereas domestic demand and consumption appear to be one of the biggest challenges to the consequential export of high-producing crops, other factors like the predominantly subsistence farming culture, poor or non-existent value chain optimization, and the disconnect from markets of local smallholder farmers; are some of the root causes of Nigeria’s inability to convert its vast agricultural advantage to consequential revenue.
Some other challenges as a result of these underlying issues include poor quality of produce and inability to meet international best standards, post-harvest loss among others. The poor state of export support facilities like the ports as well as the insufficiency of these facilities
Where does this leave Nigeria?
Global crop production is expected to grow from $4433.51 billion in 2020 to $4604.67 in 2021 at a compound annual growth rate of 3.9% and the market is expected to reach $6093.13 by 2025 at a compound annual growth rate of 7%.
Nigeria has a total of 70.8 million hectares of agricultural land area and agriculture contributed 22.35% to the total gross domestic product higher than Oil which contributed 9%. In the first quarter of 2021, Nigeria’s agriculture sector grew by 2.28% in real terms. This means that agriculture has the capacity to change the narrative on Nigeria’s practice of mono-economy, if fully utilized
Mr. Aloys Akotsaha, the president of the Agricultural Produce Sellers Association of Nigeria (APSAN) in a recent interview said that Nigeria must redeem its image in the international market to boost exports of its agricultural products. He also advised that the exports leaving the shores of Nigeria should be in line with global best standards.
Maize, rice, wheat, potatoes, and others are some of the world’s most valuable and demanded agricultural products, hence Nigeria should pursue comparative trade advantage. That is, in the case of Nigeria, Nigeria should focus on exporting agricultural products which she’s more productive in producing.
With about 30 percent of Nigeria’s population in agriculture, Agriculture appears to be the sector with the highest productivity that could potentially change Nigeria’s mono-economy identity.