Economy

Nigeria can earn $500m from Shea butter export, says NIRSAL

by LAIDE AKINBOADE-ORIERE

March 12, 2018 | 6:40 pm
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Aliyu Abdulhameed, Managing Director, NIRSAL PLC Nigeria Incentive Based Risk Sharing System for Agricultural Lending on Monday, said Nigeria could earn up $500 million from 1 million metric tons if it harness its huge potential..

Nigeria presently makes about $320 million from export of 445 metric tons of Shea butter, according to available information.
Speaking at 11th Global Shea Butter Alliance in Abuja, Abdulhameed said the future of investing in Shea is huge and urged more investors to explore huge opportunities in the sector.
“We as a nation must fix the value chain to be able to get its full value for money,” Abdulhameed advised at the conference titled, ‘Going Further Together’.

Declaring the conference meeting open, the Minister of State, Ministry of Industry, Trade and Investment, Aisha Abubakar, said the future of investing in Shea is huge and also called for more investments.

According to her, “It is important to mention that in the last twin decades, the volume from producing countries especially Africa has grown to over 350,000 metric per annum, which indicates 600% increase when compared with what it was 20 years ago. The cheering news is that this is attracting an annual income of over USD200 million into the Shea producing countries in addition to the employment opportunities for over 4million people especially women across the Shea producing countries.

” To my mind, this is a far cry in view of the enormous potentials and opportunities in Shea industry. More so, it is an unarguable fact that developed economies such as United States of America and Europe have embraced Shea products as very important ingredient and raw materials for food, pharmaceutical and cosmetics amongst others”.

The minister said for Nigeria and African nations to derive maximum benefit from the sector, it is imperative to develop capacity in creating diversified products from Shea.

“It is unacceptable that about 80% of Shea is exported in raw form. Practitioners will agree with me that the price differential of Shea but in the international market when compared to that of Shea butter is huge.

“It is interesting to note that the global market for natural cosmetics is estimated to be about USD30 billion and expected to grow at about 10% annually. Of this, the certified natural cosmetics
component is about 45% while remaining 55% consists of near natural cosmetics”.

She said the nation must concentrate on creating jobs for youths and women in the sector and as producing nation, Nigeria must consume most of its own products, so that Nigeria, would be able to decide the volume and of the entire production and decide the price at the international market.

She therefore urged stakeholders to agree on a common approach towards the development of the sector.

The Governor of Niger State, Sani Bello, in his welcome address said Nigeria is the number one Shea producer in the world, accounting for 57% of the global Shea nuts production globally and that Niger State has the largest percentage.

He therefore assured that his administration would ensure that youths and women who work in the Shea sector are empowered and the bilateral relationships between communities are enhanced and increased source of income through revenue earnings.

The President of Global Shea Alliance, Badie Marico, the organizer of the conference in his welcome address said their celebrating 600% growth in the Shea industry in 20 years was a milestone moment.

He said the conference is aimed at highlighting new market opportunities, reducing trade barriers and promoting local value addition. “Shea is a source of foreign exchange earnings to the member countries,” he stressed, adding that the conference is the largest annual Shea gathering in the world.

The Permanent Secretary, Ministry of Industry, Trade and Investment, Edet Sunday, said the United States government is working closely with stakeholders to ensure the development of the sector.

“Shea is produced in 20 states out of the 36 States in the country. And this is over 25,000 metric tons. The focus is on producing high quality Shea in the country”, he said.

 

LAIDE AKINBOADE-ORIERE


by LAIDE AKINBOADE-ORIERE

March 12, 2018 | 6:40 pm
12893  |   93   |   0  |   Start Conversation

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