Okomu, FTN Cocoa exports jump 205% on quality

In the nine months of 2024, Okomu Oil and FTN Cocoa’s export sales rose by 205.6 percent as the quality of their products improve.

BusinessDay analysis reveals that Okomu Oil and FTN Cocoa reported combined export sales of N16.5 billion in nine months of 2024 (9M’24), up from N5.4 billion in the same period last year.

The foreign exchange reforms initiated by the Central Bank of Nigeria (CBN), which included the unification of exchange rates and a market-driven approach, have created an enabling environment for exporters.

With the naira’s depreciation against the dollar, Nigerian agricultural firms have found themselves more competitive internationally, attracting higher revenue from export transactions.

After trading on Thursday, November 28, the naira appreciated by 0.97 percent as the dollar was quoted at N1,644.86 compared to N1,660.83 seen on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ Securities Exchange Limited showed.

According to the National Bureau of Statistics (NBS)’S Foreign Trade Statistics, in the first half of 2024, Nigeria’s agricultural exports hit N2.14 trillion, about $1.53 billion in USD terms. It also represented a 241 percent year-on-year growth from N626 billion as of H1 2023.

However, the growth in Nigeria’s agricultural exports has come from a bulk of unlisted companies across the country, as agribusinesses listed on the NGX generated revenue worth about N16.5 billion from exports during the period under consideration.

Industry analysts attribute this impressive growth to the increasing global demand for Nigeria’s agricultural products, such as cocoa, sesame seeds, cashew nuts, and palm oil.

Okomu Oil, for instance, recorded a 194 percent increase in export revenue compared to the previous year while FTN Cocoa reported a turnaround in export sales of N637 million from cocoa butter.

Read also: Okomu Oil announces change in shareholders’ dividends payout date

An unlisted company, Olam Nigeria has also been another significant exporter of processed agricultural products, with the establishment of its soybean crushing plant in 2023.

Olam is also a significant exporter of Nigerian cashews, cocoa beans, and sesamum seeds.

Presco, one of the best-performing agribusinesses in Nigeria recorded no revenue from outside Nigeria in nine months. This trend calls into question the ability of Nigerian agribusinesses to effectively penetrate international markets.

Also, the inability of big companies such as BUA Foods to make a single dollar outside Nigeria raises concerns about Nigeria’s agribusiness strategies with export diversification goals, even as the country seeks to increase non-oil exports.

Further analysis reveals that in the first nine months of 2024, the agriculture-inclined businesses listed on the NGX recorded a gross turnover of N261 billion trillion from N151.7 billion.

Among the four listed firms Presco Plc reported the highest profit of N128.5 billion from N78.6 billion, followed by Okomu Oil which rose to N103.9 billion from N60.6 billion, Livestock Feeds rose to N28.6 billion from N14.3 billion and FTN Cocoa reported a turnaround in profit to N637 million from a loss.