Industry experts have highlighted the necessity for Nigeria to transition from the exportation of raw agricultural commodities to the production of value-added goods, pointing out the economic advantages of processing and adding value. Data from the International Trade Centre reveals that Nigeria's exportation of raw agricultural commodities like cocoa, cashew nuts, and sesame seeds has resulted in a significant loss of potential revenue.
Friday Maghouga, an expert in agro commodities exchange, discussed the economic implications of Nigeria's focus on exporting raw cashew nuts. "Exporting processed cashew kernels is markedly more profitable than exporting raw nuts," Maghouga stated, advocating for a shift towards processing to boost revenue, employment, and economic growth. "Investing in cashew processing facilities can catalyze job creation and economic development," he added.
Associate Professor Unekwuojo Onuche from the University of Africa, Bayelsa State, underscored the benefits of value addition. Onuche argued that value addition not only creates employment and increases GDP but also prevents the loss of economic opportunities to importing countries. He emphasized the importance of transitioning towards value addition in the agro sector to foster job creation, revenue increase, and economic growth.
There is a consensus among experts that the government should enact policies to facilitate the development of processing facilities and promote value addition within the agro commodities sector.
Source: Punch