Musings on Nigeria’s Agro-Processing Industry
A reflection on Nigeria’s agro-processing industry, the benefits, the challenges and suggested solutions to technological development issues.
Here are two statements that defy logic. The first is: “Nigeria has the highest GDP in Africa, standing at $514.05 billion in 2021.” And the Second, “About 19.4 million people will face a food crisis across Nigeria between June and August 2022”.
Every year, Nigeria destroys and wastes a good amount of the food produced. Food wastage is ubiquitous in the nation. This suggests that when we speak about the solution, we should also dig into the entire process that turns a seed into a meal and how that meal can be preserved. This post looks at agro-processing and its development in Nigeria with a few suggestions.
Benefits of Agro-Processing in Nigeria
The agro-processing sector is an essential element of the agricultural industry, encompassing a wide range of agronomic operations, marketed agricultural exports, manufacturing and innovation-focused processing of goods, and the production of agricultural-derived finished goods. According to Food and Agriculture Organization (FAO) report, Nigeria’s food processing sub-sector alone constitutes half of the production jobs in the country. The benefit is that a solid and effective farming sector would allow the nation to grow, provide jobs, boost the economy, and offer simple ingredients to businesses.
What are the challenges facing the sector?
Nigeria was once one of the best exporters of palm oil globally. Still, according to a 2021 report by SBM Intel, a Nigerian geopolitical research and strategic communications consulting firm, the country no longer has that prestige due to poor storage facilities and a lack of knowledge in food processing. Here are some of the technological problems facing the sector:
- Inappropriate technology: The available technology is sometimes too complicated for farmers to use. This issue is linked to the quality of the equipment, functioning, and its applicability to illiterate farmers compared to what they are used to. There is also a lack of institutional support for local and rural farmers, which provides a hurdle to the sector’s technological growth.
- Inadequate facilities: Nigeria’s agro-processing sector suffers from inadequate or non-existent facilities for preserving food products such as cereals, yams, beans, and so on, and this can result in wastage, exacerbating food poverty. According to an SBM Intel report, 47% of farmers have zero access to any storage facilities during harvest; the lack of storage facilities contributes to post-harvest losses, which could get as high as 60% for tubers, fruits and vegetables.
- Electricity and Energy: Food processing equipment mostly requires electricity. However, Nigeria’s power supply is irregular, leading high cost of power generation to run the equipment. To keep food affordable, agro-processors need regular electricity and fuel at reasonable prices.
Suggested solutions
- Technical support: Local farmers can’t afford foreign technology and don’t have the resources to maintain them. Due to a lack of food processing skills, farmers are sometimes forced to consume a large portion of their produce in a short period or waste it. Farmers should be educated on food processing techniques and use appropriate tools and machinery.
- Alternative energy sources: Practitioners need to embrace renewable energy sources as an alternative to the grid electricity from the government—for example, solar-powered machinery or the use of biofuel and other agricultural-based energy sources.
Please read Akingate’s article on Agro-Processing Development in Nigeria for further analysis of the industry.
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