'AGRICULTURE CAN OVERTAKE OIL IN EXPORT REVENUE'

Obumneme Umeokafor is the Managing Director of Jocarol Nigeria Ltd. He tells ADEOLA BALOGUN that Nigeria stands to earn more from non-oil exports if the current drive in agriculture is sustained

How will you assess the current efforts of government towards the promotion of agricultural products for export trade?

The present Minister of Trade and Investment, Mr. Olusegun Aganga, is doing a wonderful job in trying to create the needed investment drive in the country. But to promote this foreign direct investment, there is still more to be done. The government has to create an enabling environment; it has to put the basic infrastructure in place as a minimum standard. The road network and power are still a major setback to the foreign investment drive.

Many believe that the only thing that we export in Nigeria is crude oil. Why is there low awareness in product export?

I believe that the awareness is gradually being ingrained in the Nigerian culture. Initially, it wasn't so because the government had concentrated solely on oil and gas and we never knew what we had in the non-oil sector. Don't forget that in the early 60s, the non-oil sector was sustaining the economy until when oil became the all in all. But with what we are doing in Jocarol, with the necessary awareness we have been creating in partnership with different state governments, more Nigerians are becoming aware that there indeed are other products that can earn us foreign exchange. If you look around, Nigeria is a blessed country. If the government can look into all these areas in its drive for foreign direct investment, I believe that it will greatly help the economy and help to diversify the Nigerian economy and promote  non-oil export trade.

What is the export value of kolanut and bitter kola?

The two are very important cash crops that can be exported from Nigeria. If we look at bitter kola, for instance, the international price has been hovering between $15 and $16 per kilo. It is an investment that can earn Nigeria a lot of money if the government can encourage the plantation of more of the tree and also encourage the exportation of the product.

Bitter kola is a very good foreign exchange earner mainly demanded in the United States, France and India where it is used in the production of many medicines that are needed worldwide. We have created so much awareness and investment drive in this aspect and I believe that in the nearest future, Nigeria stands to gain enormously from the exportation in the non-oil sector. There is no need focusing so much on oil that can finish at any time when we have other vital areas too where we can earn foreign exchange.

When I was a student in Europe and I did a dissertation research on agriculture export, I discovered that Spain is the chief exporter of food in the entire Europe. Spain exports agricultural products to different European countries; there is no oil there. Their manufacturing sector is not so good but Spain has a better standard of living. Nigeria stands so much to gain also as the agricultural power house in Africa if the government can sustain the current drive.

What of charcoal export?
Charcoal also is a good export product but we have had much rain this year and it has greatly affected the exportation of charcoal. Ordinarily, we are supposed to be in the season of charcoal but the flooding has not helped matters.

What other area of export is Jocarol making effort to go into?

We are presently partnering with the Lagos State Government to create the needed awareness about the potential in agriculture product export. We organise trainings and workshops and help in sourcing contracts with different international companies. We believe that these are little contributions that will go a long way in creating the needed awareness because knowledge is power. We focus on quality specifications of these products because we discover that ignorance on the part of Nigerian investors about quality specification of some of the exported products has led to great losses. We put them through and the risk factors associated with each product and the countries where they are demanded. We are happy that many people and companies are coming to acquire the needed knowledge to enhance their earning.

What of the cassava tuber; can the product be exported in that form?

Well, the tuber can be exported but it is just that the risk is quite high. Preferably, the chips will be better because of its added value. The contract the Federal Government secured from China is basically on cassava chips and pellets. Quite a number of Nigerian companies now export agro-based products to the world and we are happy about that. I must say that the government's drive has attracted huge returns in terms of cassava chips contracts from China. I believe that the right foundation has been laid for us all to build upon.

Are the ports conducive for export trade?
I will commend the government for making them export trade friendly. But when it comes to import, I still believe that there is room for improvement. The 24-hour clearance is still not operational in Nigeria and this is what the government must do a lot to achieve. The road network is vital. In fact, I don't understand how roads leading to major seaports are in such ugly shapes. This is an important aspect of international trade which the government should look at critically and do something drastically.

There were reports in the past of many security outfits at the ports, often leading to too much bureaucracy. Has the situation improved now?

There is no problem with different outfits manning the ports but what I think the government should do is to spell out the specific functions of each outfit to avoid overlapping and duplication of duties. There must be a kind of harmonisation of functions and the fees paid so that the 24-hour clearance can be achieved.

What in real terms does Nigeria stand to gain in exporting agricultural products?

Presently, Nigeria's earning in the agriculture export sector is not what government wants it to be. If we look at the present GDP of Nigeria, returns from agricultural products have not reached 50 per cent benchmark. But I can say that if everything is put in place, agriculture export can overtake what we earn from the oil export. If the government sustains the policy, especially its plan to ban the importation of rice in 2015 and increase the production rate of cassava, I believe in five years, agriculture's contribution to the GDP would be quite significant.

But do we have enough resources to achieve that?
I believe we have. If the private-sector driven agricultural sector is encouraged and sustained, with time, many Nigerians will diversify into the sector. What I also want to say is that it is not how many Nigerians that come to the field but the method of farming used. Government really has to invest more in mechanised farming to phase out the present subsistence farming method. One mechanised farmer can produce in a season what 200 subsistence farmers can produce in years. Government should intensify efforts in providing necessary incentives to encourage manufacturing or importation of agricultural equipment and implements where farmers can have easy access.

In the US, only about five per cent produce what the population eats and even export. It is not a matter of how many but the techniques and methods employed.

As a company that interfaces on behalf of Nigerian companies internationally, is there an improvement in how foreigners regard Nigerians in terms of partnership and investment?

I believe Nigeria is a world power, no matter what is being said about us. It will amaze you in most of the international flights I have been, the number of foreigners in the plane is always more than double compared to Nigerians. You ask yourself this question, of all the negative things being said about Nigeria, what is it that is bringing in this huge number of foreigners? I believe that we need to put things right in Nigeria because it is a great country that is blessed.