Guidelines for exporting agro products from Nigeria
The Nigerian agricultural sector which employs two-thirds of the entire labor force is the largest sector of the economy. The sector contributed about 25.2 % (N10.50 trillion) to the nation's GDP as of 2019. Despite this status as being the largest employer of labor, it is estimated that Nigeria has lost USD 10 billion in annual export opportunities from groundnut, palm oil, cocoa, and cotton.
The Netherlands is amongst Nigeria’s biggest trading partners. Nigeria exports agricultural products like cocoa beans, cashew nuts in shell, frozen shrimps, ginger, fish, crustaceans, mollusks, aquatic invertebrates, oilseed, grain, seed, fruits to the Netherlands. The Nigerian government policies on agriculture are focused on agro-export promotion amongst others. There is also a growing interest of Dutch agribusiness companies in Nigeria, the focus of the Nigerian industrial policies towards earning more forex, and the growing private capital investments in the agro-export value chain has triggered an interest to study the agro-export value chain. A study was commissioned by the LNV West Africa to provide clear insights into the procedures, policies, and challenges of exporting agricultural-related products and services from Nigeria. The information is expected to guide international trade between the Netherlands and Nigeria. Increased food trade can help Nigeria meet the projected demand for food which may reach 355.1 million MT in 2028.
The Nigerian agricultural sector which employs two-thirds of the entire labor force is the largest sector of the economy. The sector contributed about 25.2 % (N10.50 trillion) to the nation's GDP as of 2019. Despite this status as being the largest employer of labor, it is estimated that Nigeria has lost USD 10 billion in annual export opportunities from groundnut, palm oil, cocoa, and cotton.
Though Nigeria has the largest economy by size, it is still ranked 131st out of 190 countries on the World Bank’s ease of doing business index for 2020 placing the country at the 34th position among African Countries. the position of Nigeria on the ease of doing business ranking means that the time and cost of doing business in Nigeria is still regarded as being very high. The limited access to investment capital has further negatively impacted agricultural export growth in Nigeria against all the efforts from governmental export promotional policies.
Other limitations in the agricultural export system are a result of several factors, such as the presence of mycotoxins in some agricultural products, the sustainability of supplies after the initial market agreement has been achieved, issues associated with port clearance, issues of corruption by government officials involved in both clearing and forwarding for shipments and the absence of transparency on the part of some agencies involved in export promotions. These challenges present a unique opportunity for Dutch enterprises to collaborate towards innovation and technical support to the needs of the sector. The transformation of the Nigerian agro-export sector will result in great economic and social gains for both local and international stakeholders.
Agencies and policies
Different export promotion agencies, policies, regulations, and procedures play a role in the export of agricultural and agro-allied materials from Nigeria. All these actors involved in export, such as the Nigeria Single Window Trade (NSWTP) or the Federal Ministry of Industries, Trade, and Investments (FMITI) have strengths and weaknesses. Also, the EU has policies and regulations governing the export of food and agricultural commodities from Nigeria to the EU. The specific policy and regulation governing the export of agricultural commodities from Nigeria to the EU is the Generalized Scheme of Preferences (GSP) which is based on 1971 GATT an arrangement that allows one-way and non-reciprocal tariffs to some developing countries.
Countries without specific agreements with the EU are governed by the GSP and Nigeria is listed as one of such countries. On the other hand, trade barriers between Nigeria and EU policies and regulations governing the export of food and agricultural commodities from Nigeria to the EU are systematic measures aimed at stimulating domestic growth and protecting some endangered species. For access to the EU market regarding all imported product lines, especially foods/feeds and agriculture, there are several requirements (standard requirement) or hurdles that must be passed on specific products before acceptance into the EU market. Recently a scoping study identifying agricultural commodities with export trade potentials was commissioned and published. The results of the study have given input to develop programs in the ginger and shea butter value chain. Please see the links below.
https://www.cbi.eu/market-information/spices-herbs/vca-nigeria-ginger-2020, https://www.cbi.eu/news/national-sustainable-ginger-platform-nigerian-ginger-sector
Concluding, there are too many Ministries, Departments, and Agencies (MDA’s) involved in the export, which all have varying powers. There is the absence of clear information on requirements for export into the EU and inadequate knowledge on the product certification among value chain actors and guidance on relevant authorities. The certification process should be simplified, official websites need to update their websites with recent data and key MDA’s should harmonize and simplify export procedures to different markets. However, the agricultural team of West Africa is always willing to support to maneuver these difficult circumstances.
For more information on the guidelines for exporting agricultural agro-related products from Nigeria, click this link.
You can reach out to The Netherlands Government Agricultural team in West Africa, Landbouwteam, Ghana, Ivory Coast and Nigeria by e-mail
E-mail: ACC-LNV@minbuza.nl
Twitter: @Agri_WestAfrica