The Nigerian Export Promotion Council (NEPC) has expressed concerns regarding the minimal profits derived from Nigeria's onion trade, despite its status as one of Africa's leading producers. Nigeria produces nearly two million tons of onions annually, but the majority are sold in their raw form, which is identified as a primary reason for the reduced profit margins.
At a stakeholders' interactive session in Gombe, aimed at developing an onion export strategy, NEPC's Executive Director, Ms. Nonye Ayeni, represented by Mustapha Umar Faruk, discussed the challenges within the onion value chain. She noted that onion cultivation spans across the North East, North West, and North Central regions, yet the country faces hurdles in maximizing its potential due to inadequate processing and export strategies.
Ms. Ayeni pointed out that although the onion value chain includes a wide range of stakeholders, from farmers to logistics providers, almost all Nigerian onions are traded in their raw state. This lack of value addition through processing into products such as onion paste, dehydrated flakes, powder, and other derivatives, severely impacts profit margins and export earnings.
The NEPC is focusing on engaging stakeholders to develop an Onion Export Strategy document to address these challenges. The goal is to enhance Nigeria's competitive edge in the global market, as other nations increasingly capitalize on the onion trade.
Ms. Ayeni reaffirmed NEPC's commitment to its "Double Your Export" initiative, aimed at revamping the onion sector for improved export outcomes. The Commissioner in the Ministry of Commerce, Trade, and Industry, Nasiru Aliyu, commended the NEPC's efforts and encouraged farmers to intensify onion cultivation efforts. Sale Sadauki, President of the Chamber of Commerce, emphasized the importance of selecting high-quality seeds for better storage and export viability.
Alhaji Sani Pantami, the North East Chairman of Onion Producers, lauded the NEPC for enhancing the knowledge of farmers and stakeholders on international market standards for onion production and packaging. This initiative is expected to equip producers with the necessary skills to improve their production processes and navigate the export market successfully.
As Nigeria seeks to expand its non-oil exports, the onion sector presents a promising avenue for growth. With strategic planning, partnerships, and investment, Nigeria can elevate its onion trade from a low-profit activity to a significant contributor to the national economy.
Source: Daily Trust