Analysts advocate export of value-added agro commodities

Industry experts have emphasised the need for Nigeria to shift from exporting raw agro commodities to value-added products, citing the significant economic benefits of processing and value addition.

According to data from the International Trade Centre, Nigeria’s export of raw agro commodities such as cocoa, cashew nuts, and sesame seeds has left a substantial amount of potential revenue untapped.

For instance, cocoa exports worth $708m left $404m in unrealised potential, while cashew nuts had $220m in actual exports and $437m in untapped potential.

Speaking with our correspondent on this issue, an agro commodities exchange expert, Friday Maghouga noted that Nigeria’s predominantly raw export of cashew nuts means the country is missing out on substantial economic benefits.

 “Exporting processed cashew kernels is markedly more profitable than exporting raw nuts,” he said.

Maghouga emphasised that transitioning from raw exports to processed products can significantly enhance revenue, create employment opportunities, and stimulate economic growth.

“Investing in cashew processing facilities can catalyze job creation and economic development,” he added.

Associate Professor Unekwuojo Onuche of the University of Africa, Bayelsa State, also stressed the importance of value addition.

“The fact is that when you add value to a product, you create employment and increase GDP. But if all you do is export raw materials, you are creating opportunities for the importing countries,” he said.

Onuche noted that a product with value addition adds more to the economy than the raw material.

“We need to move away from just exporting raw materials and focus on adding value to our products. This is the only way we can create jobs, increase revenue, and stimulate economic growth,” he emphasised.

Experts advocate that the government should implement policies to support the development of processing facilities and encourage value addition in the agro commodities sector.