Crashing Onion Prices in Nigeria: Producers Deny Impact of Niger Republic Imports

The National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN) and the Regional Observatory of Onion in West and Central Africa (ORO/WCA) have refuted as misleading a recent report alleging that massive onion imports from the Niger Republic are responsible for falling prices in Nigeria.

In a joint statement issued in Sokoto on Sunday, the associations described the report as “false, unfounded, and unsupported by any credible trade or market data.”

The bodies emphasised Nigeria’s dominance in onion production within Sub-Saharan Africa, asserting that the country remains a net exporter of onions—not an importer—especially to neighbouring countries like Niger Republic.

“Nigeria’s domestic production far exceeds that of Niger Republic, which actually depends on our supply during its lean seasons,” the statement noted.

To expatiate their position, the associations presented current market price data revealing that importing onions from Niger is commercially unviable.

“As of July 2025, onions in Niger Republic cost between 35,000 to 50,000 CFA (₦95,000 – ₦135,000) per bag, excluding transport and duty costs. Meanwhile, prices in Nigeria range from ₦90,000 to ₦100,000 per bag,” they explained.

The groups stressed that such pricing patterns clearly demonstrate that the alleged influx of cheaper onions from Niger is economically unrealistic.

Recalling a similar market scenario from March 2025, the statement added that while Nigerian onions sold for ₦40,000 per bag at that time, Nigerien onions were priced at 15,000 CFA (about ₦50,000), further debunking any narrative of cheaper imports flooding Nigerian markets.

Rather than foreign imports, the associations identified internal factors—such as seasonal production cycles, inadequate storage infrastructure, and local supply-demand dynamics—as the real causes of onion price volatility in the country.

The groups expressed concern over what they called “sensational journalism” that threatens to distort public understanding and policy around Nigeria’s agricultural sector.

“We urge reputable media houses like The Guardian to verify facts with recognised stakeholders before going to press. Such inaccuracies can damage the integrity of our agricultural value chain,” the statement warned.

In a related note, NOPPMAN and ORO/WCA commended the Federal Government, particularly the Ministry of Agriculture and Food Security and the National Agricultural Development Fund (NADF), for ongoing interventions aimed at supporting onion farmers, especially those affected by recent floods.

Looking ahead, the organisations reaffirmed their commitment to expanding onion production through modern storage systems, processing facilities, and stronger market linkages to ensure long-term food security and economic development.

They called on policymakers, researchers, and the public to rely on data from credible sources such as NOPPMAN and ORO/WCA when engaging with agricultural trade issues.

“As the backbone of onion production in the region, we remain committed to transparency and collaboration in advancing Nigeria’s agricultural prospects,” the statement concluded.

News

Nigeria’s Agricultural Sector Under Late Muhammadu Buhari’s Tenure (2015-2023)

President Muhammadu Buhari, promised in May 2015, when he assumed office, that his administration would promote self-sufficiency in agriculture and food production. The former Central Bank Governor, Sanusi Lamido Sanusi, described Buharism as a kind of bourgeois nationalism that is radical in the sense of being a progressive move away from domination by a parasitic elite, to one in which a nationalist and productive class gains ascendancy. Buharism also believed in its long-held principle argument against Naira devaluation as the means to improve Nigeria’s balance of trade. This is based on its premise that there are superior alternatives for relieving pressure on Nigeria’s foreign reserve.

An expression of this was the appointment of Hameed Ali, a retired army colonel, as Comptroller General of the Nigeria Customs Service, which enforced import restriction measures on 41 essential items. The reason was that the products could be produced locally and would relieve the pressure on the Naira. Some of the banned items were agricultural finished products like Rice, fertiliser, Sugar, Meat, Fish, and Poultry. This policy was also intended to create opportunities for local producers in the domestic market. While there have been highlighted successes, there have been unmet expectations, as well, especially where the projected increased production of the banned items and impact on agricultural development in Nigeria didn’t happen.

The Anchor Borrowers’ Programme (ABP) was the main agricultural initiative of the government. It was formulated by the CBN and launched by President Muhammadu Buhari in November 2015. The ABP aimed to provide farmers with agri-inputs in cash and kind. Included in this laudable initiative was also a scheme to connect farmers with off-takers, who would in turn pay fair prices. This Credit support was provided each year, ahead of the season, by the CBN and the farmers are expected to repay the obligation with their harvests, just like a contract farming model. About 4.2 million farmers are said to be registered on the programme, and participation is limited to only one hectare of farmland per farmer.

The focus of agricultural economics is mainly on increasing growth and productivity of farmers. The ABP was designed to focus on increasing the number of farmers. As existing progressive farmers are not allowed and encouraged to reach 5 hectares (highest class for small commercial farmers) there has been no growth, no increased income and therefore, no spending in the rural economies and, by extension, no employment and income for the rural poor. This policy has not reduced poverty.

The ABF scheme has not grown. One of the reasons for its lack of growth is the high rates of default in repayments from the farmers. According to the International Monetary Fund (IMF) 76% of the beneficiaries have defaulted even though repayment can be made in kind, thereby limiting the tenor to one season. The IMF claims that the cause of default is because the recipients of the loans are not always well targeted. Corruption may have blighted the opportunity for the scheme to register experienced and committed farmers.

At the ABP launch in 2015, President Buhari was particularly hopeful that it would accelerate local rice and wheat production. Since then, we have seen an unprecedented increase in the production of rice and massive development along the rice value chain, with about 50 new large-scale milling factories established across the country. The success is impressive, and the country has benefited with sufficiency in rice, employment, and income for many tens of thousands through the value chain. However, the programme has failed to show any impact on local wheat production. The CBN has now succumbed to the age-old response of import substitution and political appeasement by launching The Brown Revolution. The Brown Revolution has to come under scrutiny because the CBN has spent over N40 billion for a one-season programme.

The CBN’s direct involvement in agricultural policies and implementation within the last 8 years is as a result of the emphasis of the Buhari administration on the conservation of foreign reserve through import restriction measures – a Buharism alternative to neo-classical economics. Agricultural developmental projects and programmes that came after the ABP, implemented by the government appear to have been an afterthought. The roles of developmental agencies and institutions like the Bank of Agriculture, may have been usurped by the CBN’s very direct involvement in their traditional roles.

Credit –

News

Nigerian Firm Unveils $5bn Cooperative Trust Fund to Boost Agriculture Investment

As part of measures towards boosting Agriculture, a $5 billion Assured Invest Cooperative Trust Fund has been launched by a company known as Mechanized Agricultural Investment and Services (MAIS) Limited to “unlock the full economic potential of our people, farmlands, small businesses, and national future”.

The fund is described as one of the most transformative financial vehicles ever created for the cooperative sector in Africa.

While speaking at the launch in Abuja over the weekend, Chief Vision Officer, MAIS, Mr. Benjamin Aduli, said the fund remained,“A bold declaration that cooperative capital—when properly structured, transparently governed, and purposefully deployed can unlock the full economic potential of our people, our farmlands, our small businesses, and our national future.”

He observed that for decades, the Nigerian cooperative system had been treated as an afterthought—underutilised, underfinanced, and underestimated.

He said, “Today, that era ends. With this Fund, we are shifting from marginalisation to mobilisation.”

He said the fund was particularly historic given that it is demand-driven.

“Unlike traditional financing models that are supply-driven—flooding the market with unsolicited capital, this fund responds only to verified cooperative demand – It is tailored to the real, structured needs of cooperative members—whether that’s a rice farmer in Lokoja, a housing cooperative in Enugu, an MSME cluster in Kaduna, or a youth cooperative in Abeokuta” he said.

Aduli further explained that the fund is backed by institutional capital, governed by cooperative law, not securities law, and driven by clear cooperative use-cases: food production, mechanisation, housing, education, clean energy, and digital inclusion.

He said, “It is not a public investment scheme. It is a secured cooperative financing framework, created by members, for members, and through members.

“The fund will be administered transparently with the oversight of trustee banks, insurance underwriters, and cooperative federations—including our partners.”

He listed the partners to include,

Cooperative Financing Agency of Nigeria (CFAN), National Agricultural Cooperative Organisation (NACO), Cooperative Housing Federation of Nigeria (COHFON), and Akilaah National Cooperative Federation (Akilaah).

Aduli also said the company would begin onboarding verified cooperative societies nationwide to participate in the fund subject to its terms and conditions.

He said, “We encourage federations, unions, primary cooperatives, and affiliate networks to engage with the Maistrade Ecosystem, access onboarding kits, and take advantage of this generational opportunity.Together, we are building more than a financial fund—we are building a new era of economic justice, where membership equals access and contribution guarantees returns.

“Let me thank every single partner—especially our banking allies, technology partners, and the leaders of Nigeria’s cooperative renaissance—for believing in this vision and walking this journey with us.Let history remember this day not just as a launch, but as the day Nigerian cooperatives stood up—not to beg, but to build.”

News

Cross River Boosts Coffee Farming as UK Grants Duty-Free Access to 3,000 Nigerian Products

Over 3,000 Nigerian products, including cocoa and cashew, can now enter the UK market either duty-free or at reduced tariffs. This is according to the United Kingdom.

The Country Director for the UK Department for Business and Trade, Mark Smithson, announced this move, which is part of the UK’s Developing Countries Trading Scheme (DCTS), in a recent video released by the UK in Nigeria.

Smithson in a statement said, “Up to 3,000 products from Nigeria qualify for low tariff or no tariff access to the UK through the Developing Countries Scheme, one of the most generous trading schemes in the world,”.

Speaking further, he said the UK has simplified the process for Nigerian exporters by making it easier to trade a variety of goods, including cocoa and textiles, among others. He encouraged Nigerian exporters to take advantage of the opportunity.

“The UK is open and looking to do business with Nigeria. So why don’t you go to the website and find out more about the Developing Countries Trading Scheme and begin to trade with us?”

The DCTS, which was introduced in 2023, replaced the UK’s previous Generalised Scheme of Preferences. It is designed to cut tariffs and simplify trading rules for over 60 developing countries, including Nigeria.

In a related development,Cross River State government, in partnership with a leading agribusiness firm, JR Farms, has launched an ambitious project to cultivate 30 million coffee seedlings across the state.

A statement to the media on Monday noted that the initiative, which was flagged off in Calabar on Thursday, signals a renewed national drive to position Nigeria as a competitive player in the global coffee market. With its focus on job creation, rural development, and climate resilience, the project is expected to become one of the largest coffee cultivation projects in West Africa.

In his speech at the event, Governor Bassey Otu described the initiative as a strategic move to reintroduce and reposition Cross River as the coffee capital of Nigeria and an emerging player in the international coffee market.

“With 30 million robust and climate-appropriate seedlings being distributed across our 18 local government areas, this project offers much more than cultivation. It is about creating jobs, generating wealth, building sustainable livelihoods, promoting agro-industrial development, and restoring our ecological balance.

“We are particularly proud of the strategic partnership with JR Farms, whose global footprint in the agrifood space and expertise in coffee value chains bring tremendous value to this initiative. Through their involvement, we are assured of technical support, market access, and international best practices in every aspect of implementation,” Otu said.

In his remarks, Olawale Rotimi-Opeyemi, JR Farms CEO and founder stressed the significance of the project, noting that after nearly a decade of working in the coffee value chain across East Africa, engaging over 4,000 farmers, his company was excited to bring that experience home to support Nigeria’s coffee industry transformation.

Olawale, who commended the Cross River state government’s commitment to agricultural development, said the 30 million coffee seedling cultivation project would engender prosperity for the people, ensure rural development, create jobs for youth and women, and place the state on the global map of coffee production.

The JR Farms CEO disclosed that with years of operations in Nigeria, Rwanda, France, and Zambia, his company would deploy its extensive wealth of experience in coffee production and global marketing to ensure the long-term success of the project and help Cross River become a major player in the international coffee market.

He explained that farmers across the state would be trained through a “Train-the-Trainer” model covering agronomic practices, ethical production, and the economics of coffee farming. According to him, 11,000 coffee farmers across the state have been onboarded under the project.

Olawale added that JR Farms would work with the State Ministry of Agriculture and Irrigation Development to establish coffee washing stations in different parts of the state for post-harvest processing and also open communication channels for real-time technical support for farmers.

GYANT

Tag Archives: economy