June 12, (THEWILL) – Nigerian farmers and others in the agribusiness value chain raked in a total of N1.17 trillion in export earnings in one year between Q1 2021 and Q1 2022, according to data from the National Bureau of Statistics (NBS). The figure consists of direct Agricultural Exports earnings valued at N706.28 billion and earnings from commodities exported in the Raw Materials category to the tune of N472.99 billion. The values for Q1 2022 were N201.59 billion and N77.05 billion in the Agricultural/Commodity and Raw Materials exports respectively.
This feat was achieved amid grave infrastructure challenges and worsening security situations that impact on Agriculture and agribusiness value chain across the states. It however indicates that the CBN intervention programmes meant to fast-track the development of critical sectors of the economy are yielding results. The farmers’ success story, therefore, cannot be distanced from the benefits of the 45-year-old Central Bank of Nigeria (CBN) Intervention Fund introduced in 1977 with its capacity to create jobs, boost income and enhance quality delivery.
According to the NBS report titled, ‘Foreign Trade in Goods Statistics’ for the first quarter of the year (Q1 2022), exports in agricultural goods/commodities was N201.59 billion. This reflects an increase of 51.89 percent compared with the N132.71 billion achieved in the preceding quarter (Q4 2021); and 58.35 percent rise against N127.31 billion achieved in Q1 2021.
With the exception of Q3, agricultural goods export recorded continued increase between Q1 2021 and Q1 2022, hitting a cumulative amount of N706.28 billion. It rose from N127.3 billion in Q1 2021 to N165.27 billion in Q2 2021. The figure dropped to N79.14 billion before hitting N132.71 billion in Q3 2021 and Q4 2021 respectively, before climbing to the Q1 2022 amount of N201.59 billion. The overall growth was 58.4 percent for the one year under review.
A second aspect of the trade statistics in the agriculture-related activities is the Raw Materials sub-sector of the NBS ‘Foreign Trade in Goods Statistics’ report. Data from the report revealed that a total of N278.64 billion agricultural commodities were exported in the Raw Materials category. This was a 15.8 percent drop from the N330.92 billion earned in the previous quarter (Q4 2021).
The export of commodities in the Raw Materials category grew exponentially from N170.00 billion in Q1 2021 to N208.22 in Q2 2021. The figure rose to N201.55 billion in Q3 2021 before hitting the peak of N330.92. The combined export earnings for direct Agricultural Goods/Commodities and Raw Materials exports (with agricultural commodities contents) was N706.28 billion and N483.05 billion, totaling N1.19 trillion for one year (Q1 2021 to Q1 2023).
Disaggregation of the Q1 2021 showed that most of the agricultural products were exported to Asia, with total value ₦101.99 billion, followed by Europe with ₦27.49 billion. Export of agricultural products was dominated by superior quality Cocoa beans valued at ₦72.59 billion followed by ‘Sesamum seeds, whether or not broken’ with ₦56.45 billion and Standard quality Cocoa Beans with ₦13.21billion.
“By direction of trade, ‘Superior quality raw cocoa beans’ worth ₦27.16 billion and ₦16.11 billion was exported to The Netherlands and Belgium respectively. Furthermore, Sesamum seeds worth ₦24.34 billion and ₦11.11 billion were exported to China and Japan respectively, followed by exports of Standard quality Cocoa Beans worth ₦6.70 billion and ₦2.74 billion exported to Germany and Malaysia respectively,” the report stated.
Further analysis of the NBS data revealed that in Q1 2021, the export of Urea (whether or not in aqueous solution) fetched N16.8 billion exported mainly to Brazil, while Leather (further prepared after tanning) exported to Spain and Italy was valued at N6.6 billion and N1.0 billion respectively. Cotton (not carded or combed) worth N1.9 billion was exported to Pakistan during the period.
“During the quarter, Urea (whether or not in aqueous solution) worth N30.74 billion was exported to Brazil and Leather further prepared after tanning worth N5.77billion was exported to Spain. There was also exportation of Non-wired unworked sheets of float worth N3.44 billion to China and Cotton, not Carded or Combed worth N3.0 billion exported to Pakistan during Q2, 2021”, the report stated.
For Q3 2021, the commodities exported under the Raw Materials sub-sector include Urea exported to Brazil and Argentina in values worth N92.16 billion and N14.3 billion respectively. Technically specified natural rubber was exported to France at a value worth N2.16 billion.
Other products exported under this sector were Leather exported to Spain valued at N5.46 billion and N1.17 billion to Italy. Gum worth N6.89 billion was exported to Brazil during the period under review.
During Q4 2021, “Urea whether or not in aqueous solution” was exported to Brazil at a value of ₦183.04 billion. This was followed by Ammonium sulphate to Brazil valued at ₦14.09 billion and Technically specified natural rubber (in primary forms or in plates) exported to Spain valued at ₦1.08 billion,” the NBS report stated.
Similarly, Urea (whether or not in aqueous solution) was exported to Brazil at a value of₦63.11billion. This was followed by Cocoa shells, husks, skins and other cocoa waste valued at N3.88 billion exported to Indonesia to Indonesia valued at ₦3.88 billion.
At the post-MPC media briefing in Abuja on May 23, 2022, the CBN Governor, Godwin Emefiele, said the intervention scheme targeted at stimulating productivity in agriculture; manufacturing/industries; energy/infrastructure; healthcare; exports; and micro, small and medium enterprises (MSMEs) had made the desired impact.
According to him, between April and May 2022, the Bank released the sum of N57.91 billion under the Anchor Borrowers’ Programme (ABP) to 185,972 new projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the Programme to N1.01 trillion, disbursed to over 4.2 million smallholder farmers cultivating 21 commodities across the country.
The Bank further disbursed the sum of N1.50 billion, under the Accelerated Agriculture Development Scheme (AADS), to one (1) new youth-led project, piloted and funded through the Government of Ondo State for the acquisition of assets for oil-palm cultivation and the establishment of poultry farms. This brings the total disbursement under the Scheme to N21.23 billion for 10 state-led and three (3) private sector-led projects.
In addition, the Bank released N21.73 billion to finance seven (7) large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS).
The funds were utilized for the establishment of a ranch and milk processing facility; procurement of feed and medication for livestock/dairy production; construction of a 300 metric-tonne per day oil mill in Gusau, Zamfara State; acquisition and installation of an agrochemical factory; as well as purchase and stockpiling of homegrown maize for animal feed production. This brings the cumulative disbursement under this Scheme to N741.05 billion for 674 projects in agro-production and agro-processing.
Under the Paddy Aggregation Scheme (PAS), N6.20 billion was disbursed by the Bank to three (3) new projects for the purchase and mopping-up of home-grown rice paddy.
This brings the total funds disbursed to 42 integrated rice millers under the PAS to N106.39 billion.
The CBN has explained that its intervention in the critical sectors of the economy aimed to enhance the transmission mechanism of monetary policy actions, as well as facilitate the development of financial markets through the creation of easy access to credit for investment and production.
It maintained that the idea was to indirectly influence cost of production for firms and affect prices positively by improving the flow of credit. The apex bank also said that due to the limited fiscal space as a result of the significant drop in government revenue, it had to intervene with development finance tools and some monetary policy innovations to aid recovery without jeopardising price stability.
It could be recalled that the CBN introduced some intervention programmes in the wake of the outbreak of the Covid-19 pandemic to mitigate the impact on businesses and households which helped to sustain the economy and quickened the exit from recession in 2021. CBN has N4.3 million intervention programmes.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
