Monday, April 19, 2021
25 C
Abuja
Monday, April 19, 2021

Agric Exports also Vulnerable to External Shocks, Says CBN

Must read

Ibadan to harbour Africa’s first agricultural electronic centre

By Adeola Badru A leading agri-business expert, Azeez Oluwole, is set to launch Africa’s first agricultural electronic centre in Ibadan, the capital of Oyo State,...

THE OBASEKI HERESY: Economists, Politicians and the Death of Nations

ENGAGEMENTS with Chidi Amuta, e-mail: chidi.amuta@gmail.com ...
Folashodun Shonubi

James Emejo in Abuja

The Central Bank of Nigeria (CBN), Deputy Governor, Operations, Mr. Folashodun Shonubi Thursday warned that the country’s agricultural exports are vulnerable to external shocks, and called for the development of the commodities’ value chain through value addition.

He said the country currently lacked control over demand and supply of export commodities, thereby exposing it to the dictates of external forces.

“But again, if we are to export just cocoa, it is still vulnerable to external shocks and we don’t have control over demand; we don’t have control over supply.

“In 2014 for instance, Africa earned about $2.4 billion exporting coffee to Europe while Germany alone earned about $3.8 billion exporting Africa’s coffee. And what is the difference? Value addition.”

Speaking during a web conference on “Financing Agribusiness Post-COVID-19: Opportunities, Threats and Options” which was organised by the Nigerian-British Chamber of Commerce, he said while it is good to diversify the economy into agriculture and pursue primary production, value addition remained the cash cow for the sector.

He said diversification into grains and other staples presented a strong potential to widening government’s revenue base as domestic food demand is expected to increase to cover consumption and raw materials for industries.

Represented by CBN’s Deputy Director, Development Finance Department, Mr. Osita Nwanisobi, Shonubi said beyond production, there are enormous opportunities across the value chain in manufacturing of agricultural inputs, agro-tech initiatives, on-farm and secondary domestic processing, livestock and poultry processing, commodity trading, transportation and market research.

He said the growing momentum in the demand for foodstuff and raw materials by households and businesses as well as the growing restrictions on food export by countries, presented an opportunity for the country to start to look inwards to guarantee food security and availability of raw materials for domestic industries.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Ibadan to harbour Africa’s first agricultural electronic centre

By Adeola Badru A leading agri-business expert, Azeez Oluwole, is set to launch Africa’s first agricultural electronic centre in Ibadan, the capital of Oyo State,...

THE OBASEKI HERESY: Economists, Politicians and the Death of Nations

ENGAGEMENTS with Chidi Amuta, e-mail: chidi.amuta@gmail.com ...

Twitter African presence: Ghana’s edge on NigeriaOpinion

Twitter’s founder and CEO, Jack DorseyIt is no more news that US-based social media company Twitter Inc has concluded plans to establish a presence on...