Ad image

Non-oil exporters not ready, as EU to lift agro-commodities ban

BusinessDay
7 Min Read

There is uncertainty over Nigeria’s readiness to resume exports of banned agro-commodities, especially beans, to the European Union (EU) due to few indications that concrete arrangements have been put in place to forestall future recurrence of the ban which expires in June.

The European Food Safety Authority while banning beans exports from Nigeria last year said that they contained unacceptable dichlorvos pesticide levels of 0.03mg per kilogramme to 4.6mg/kg, higher than the EU standard maximum acceptable residue limit of 0.01mg/kg.

Dichlorvos is considered to be highly toxic, and can cause difficulty in breathing, diarrhoea, vomiting, convulsions, and dizziness among others. Like many organophosphate (OP) insecticides, it also inhibits the enzyme cholinesterase, which results in disruption to the nervous and muscular system.

“It is difficult to say what the position will be in June. Federal government has been trying, individuals have been trying, and even EU themselves, and their representatives are here trying to help,” Madu Obiora, CEO of Multilinks export house tells BusinessDay.

“Have we done enough? I’m not sure. But we are hoping that we will be delisted,” says Obiora.

Nigeria’s top five non-oil export products as at the fourth quarter of 2015 were; Cocoa products,  Sesame seeds, Cigarettes containing tobacco, unwrought Aluminium alloys, and Technically specified natural rubber, in primary form or in plates, according to data from the National Bureau of Statistics (NBS).

The top five destinations for Nigerian exports were; India, Spain, the Netherlands, France, and Brazil.

The 2nd, 3rd, and 4th top destinations (Spain, the Netherlands, France) are members of EU where some Nigerian agro-produce were banned. Invariably, Nigeria’s ability to continue its exports to these locations will depend significantly on how the country is able to fulfill the conditions for EU imports to resume.

Beans, which is produced in large quantities is conspicuously missing from the top non-oil exports in Q4 2015 despite its enormous potentials for non-oil revenue.

More than 5.4 million tons of dried cowpeas (beans) are produced worldwide, with Africa producing nearly 5.2 million. Nigeria, the largest producer and consumer, accounts for 61 percent of production in Africa and 58 percent worldwide. More than 11 million hectares (of beans) are harvested worldwide, 97 percent of which is in Africa. Nigeria harvests 4.5 million hectares annually, notes the International Institute for Tropical Agriculture (IITA).

Assessing the performance of Nigeria Agricultural Quarantine Service (NAQS), the body charged with ensuring compliance with required standards, Adeola Elliot, Chairman of the Agric Group at Lagos Chamber of Commerce and Industry says “The problem we have in this country is corruption. One expects that they should be efficient, but, we hope with the new government and the approach they are bringing in, they will improve. But the truth is that, a lot of people who are trying to export products in this country, are usually bribing their way out. That is the unfortunate thing in this country. But if you bribe your way out here, you can’t do that in Europe.”

“The government needs to really strengthen the capacity of the team (NAQS) in Nigeria. With more training and exposure, one hopes that more integrity will come in,” Elliot adds.

The commitment of government towards strengthening the quarantine service however remains largely lip service. In the proposed 2016 budget, the Nigeria Agricultural Quarantine Service has “zero” as its allocation for personnel. This necessitates the question as to where the government will get Nigerians who are willing to work for free throughout the year.

The agency has a total overhead proposal of N63, 731,681 and N140, 570,670 capital proposals. It had been reported that NAQS has about 50 stations spread across the nation’s vast land and maritime boarders including air and seaports, and less than 700 staff. Assuming the overhead cost goes into remuneration for the 700 staff it gives approximately N90,000 per head in a year, and N7,500 per month; a far cry from the minimum wage of N18,000.

Unless the budget proposal has been amended by parliament in the course of budget defence and review, the quarantine service is acutely underfunded to discharge its duties.

Yinusa Dakat, the North-West Zonal Coordinator of NAQS while responding to BusinessDay enquiries on level of compliance to resume exports, said “we have been organising workshops, informing our farmers on what they should do on the farms; when they should apply pesticides, and when not to. About three months ago, we gathered farmers in all the 36 states for a workshop in Abuja, and EU representatives also assisted in it.”

Asked to comment on the level of preparation to beat the June deadline, Dakat explains that expectations can only be hinged on farmers putting what they have been taught to practice when applying pesticides.

“We expect a yield that will have no pesticide. That is what we hope,” Dakat says.

Obiora of Multilinks export house and Dakat of NAQS speaking with BusinessDay separately asserted that the ban presently affects only beans, as other commodities such as Sesame seeds which feature among top five non-oil exports in Q4 2015 have been cleared.

It remains unclear what surveillance and monitoring mechanisms have been put in place to ensure that farmers produce not only beans, but other export worthy commodities in quantities that will be devoid of banned chemicals and substances.

CALEB OJEWALE

Share This Article
Follow:
Nigeria's leading finance and market intelligence news report. Also home to expert opinion and commentary on politics, sports, lifestyle, and more