Cocoa, sesame, cashew exports hit $48m, boost non-oil export

The quest to diversify the Nigerian economy through the non-oil sector has received a fillip, as export values of three agricultural commodities cocoa, sesame and cashew nuts to Europe, America and the African markets in the first quarter of 2014 reached $47.59 million.

This figure represents a 196.06 percent jump from $16.08 million reported in the corresponding period of 2013, data obtained from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) show.

The data however shows there was no export of cotton in Q1 2014. This is different from Q1 2013 when cotton worth $1.35 million was exported.  According to NACCIMA, the data used in the analysis are based on values obtained from certificates of origin issued by the association, for the period January to March, 2014.

Cocoa exports in Q1 2014 rose to $30.55 million,  from $8.46 million recorded in the corresponding period of 2013, representing a 261 percent spike.

Similarly, sesame seed export in Q1 2014 rose to $15.98 million, from $6.42 million in the same period of 2013, representing a 149 percent increase.

But export of cashew nuts witnessed a decline of 11 percent to $1.06 million in Q1 2014, as against $1.19 million reported in Q1 2013.

“Given the success achieved by the non-oil sector, it is evident that Nigeria has the capacity to produce for local consumption and also meet global demand,” said NACCIMA, led by Mohammed Badaru Abubakar, in an e-mail to BusinessDay.

“Hence, it is important for the Federal Government to provide more incentives that support non-oil export, including making available infrastructures required to effectively transform the real sector of the economy,” NACCIMA added.

Read also: Nigeria’s lead export up by 79% in 2015 showing sector potential

Global externalities, such as the decline of political upheaval and upturn in economic activities in the Arabian countries during this period, as well as the  ability of local farmers and those in the agric value chain to meet the demand of the export market, were responsible for the upturn.

Other contributing factors include the     encouragement received by farmers from the Federal Government intervention in the agricultural sector and the Agricultural Transformation Agenda (ATA) programme.

Data from the Nigerian Export Promotion Council (NEPC) showed the country’s non-oil export in 2013 were worth $2.97 billion, out of which cocoa gulped 26 percent share ($758.64 million). Cocoa and its preparations were exported to the Netherlands, Italy, India, Spain, Turkey, Germany and the United States of America.

The data compiled by Cobalt International Services, showed that the Netherlands was Nigeria’s topmost non-oil importer in 2013, having 20 percent ($583 million) of the total non-oil exports, representing a 72 percent leap from $339.2 million posted in 2012. It was found that cocoa was the main export commodity to the Dutch, as it took 81 percent of the total exports.

“ What we have is basically the expertise to increase agricultural production in Nigeria, which is what we export,” said Michel Deelen, head of Netherlands representation in Lagos and deputy head of mission in Abuja, in an interview with BusinessDay.

Countries in the Economic Community of West African States (ECOWAS) have served as big destinations for Nigeria’s non-oil exports. Export to top ten destinations in ECOWAS in 2013 hit $375.338 million, from $312.477 million and $276.53 million recorded in 2012 and 2011, respectively.

The top 10 African countries include Ghana, Niger, Cote d’Ivoire, Togo, Benin and Burkina Faso. Others are Guinea, Mali, Liberia and Sierra Leone.

“Nigeria is currently exporting tobacco products, plastics and rubber footwear, noodles and biscuits, polybags, milk products, iron and steel, insecticides, beverages, tomato paste and fruit juices to the top 10 African countries,” said Olusegun Awolowo, CEO, NEPC, in a statement released to BusinessDay.