Agric sector ranks second highest contributor to GDP in Nigeria, says report
Following the latest data released by the National Bureau of Statistics (NBS) which show that the non-oil sector contributed more to the GDP in 2020, with the telecommunication and broadcasting sector of the economy making the list of major contributors, followed by the Agriculture (Crop Production) sector.
The Four sub-activities, which make up the Agricultural sector, are Crop Production, Livestock, Forestry and Fishing. The sector grew by 14.03% year-on-year in nominal terms in Q4 2020, showing a rise of 0.23% points from the same quarter of 2019.
Crop production remains the major driver of the sector, as it accounts for 89.67% of overall nominal growth of the sector in Q4 2020 and 91.44% share in 2020.
The major crop producers in Nigeria are Olam Nigeria, Stallion Group, Onyx Mills, Integrated Grain possessors Nigeria limited, Quarra Rice Mill, Igbemo Rice Processing Limited among others.
Olam International is a major food and agri-business company, operating in 60 countries and supplying food and industrial raw materials to over 19,800 customers worldwide. Olam is among the world’s largest suppliers of cocoa beans and products, coffee, cotton and rice.
Its strong operating performance revenue is up 14.1% to S$21.5 billion, mainly driven by higher volumes as well as higher prices in food staples, including Grains, Rice and Edible Oils.
Earnings before interest and taxes (EBIT) was up 40.3% at S$462.4 million on higher contribution from the Food & Feed segments, both its Origination & Merchandising as well as Processing & Value-added segments, particularly in the Grains origination & merchandising, Grains milling, Animal Feed and Rice distribution in Africa, as the Covid-19 outbreak stimulated rising pantry restocking effects and drove greater demand for these food staples. And profit after tax (PAT) S$295.4millionin in 2020.
Stallion Group is a respected rice-processing company. They go further to provide seeds and other inputs for farmers to encourage rice cultivation. They also buy back the produce from the farmers.
Stallion has established world-class rice mills at strategic locations, to promote milling locally in Nigeria. The company works with the farming community and encourages them to use the most recent technologies and practices in farming for increased local production of paddy and other Agric-based products and thus fosters food sufficiency. Besides rice production, Stallion Group is involved in sesame farming, seeds, and fertilizers.
Onyx Rice is the agribusiness arm of Onyx Multi-venture Services Ltd. Onyx Rice Mill Bida is an indigenous rice mill with a 40MT per day installed capacity. It was established in 2009 and full operation began in 2013 and had produced over 30,000 MT of Rice.
Integrated Grain processors (Nig) Ltd is a 100% Nigeria owned private company that aims to provide Nigerians with high quality, long grain rice. The company has recently set up an ultra-modern rice processing facility at Eke in Udi LGA, Enugu State of Nigeria. The mill processes local grown, long grain rice at its milling facility.
The Company also produces rice bran as a by-product. Rice bran is very rich in minerals and vitamins. It can be used for food or as a high grade animal feed. The bran produced in our rice milling facility is packaged in 50 Kg sacs. The Company produces about 600 bags of rice bran each month.
The Quarra Rice Mill was officially opened on 19 September, 2013. Quarra on that same date began its completion of the first phase of Nigeria’s largest rice processing mill, a 25,000 tonne capacity rice facility in Tsaragi, Kwara State.
The mill produces 16,250 tonnes a year of par boiled and milled rice. Over 500 out-growers have been identified for the first three years. Quarra Rice is also developing a rice seed farm on 1,000 HA, 300 km away. Nigeria’s domestic rice imports are estimated at 2-2.5 million tonnes per annum. Production volume represents less than 1% of imports.
Igbemo Rice Processing Company Limited is the first licensed private operating rice processing and branding company in Ekiti State, Nigeria. Igbemo process and brand rice grains from farms in Ekiti State. Presently, the company is fostering relationships with both local and foreign companies in the areas of rice farming, improved processing technology and business ties.
However, the growth in the agriculture sector can be attributed to the government turning to agriculture as a means of driving growth and employment. Though the sector has fallen from the heights of the 1960s, when it accounted for as much as 70% of the country’s exports, it still remains one of the major non-oil sectors that contributed largely to the GDP in the year 2020.
The sector still remains a major employer, accounting for around two-thirds of all jobs in the country. Moreover, the potential for further growth continues to look strong.
The country has been able to substantial production in terms of value and volume of sorghum, rice, groundnuts, cocoa and fruit. In 2016 Nigeria was the world’s largest producer of cassava and yams, with annual outputs of 45m and 36m tonnes, respectively.
In addition, Nigeria ranks in the top 10 for cocoa beans and groundnuts which points to the country’s attractive agricultural environment and potential for building revenue in the agriculture sector.
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