How Border Closure May Trigger Revolution In Agro Sector
local producers to meet up with the demand after the closure of border.
From Lagos to Calabar, Anambra, Enugu and Birnin Kebbi, the story is the same — low supply and high prices of essential foodstuffs. But a lot of people also see a window of opportunity in the present circumstance for Nigeria’s agro-allied industry to witness a boom in the coming years, especially if the government sustains the policy and provides the necessary incentives to agro investors and farmers.
aggregates the views of stakeholders on the issue across the nation and presents them in the reports below: the coming festive periods, as the commodity might become too expensive and unavailable.
“Nigerian rice is good and cheaper before the borders were closed but their supply is very poor. The price was inflated immediately farmers heard that borders have been closed and this is worrisome because some of us ordered for rice for the past one month and we are yet to receive it. “Demand is more than supply. Now, festive period is at the corner, and we are yet to decide on what to sell during the period,” she added.
Also speaking with Sherifah Kosobameji, who brings in rice from Cotonou for onward distribution to her customers in Lagos metropolis, lamented that the situation has become unbearable for both marketers and Nigerians.
“Before the closure, Nigeria rice used to go for between N13, 800 to N14, 000, but now, they have taken advantage of the situation and hiked the price to N19, 000/N20, 000 per bag. The imported rice used to retail for N15, 000 but is now between N25,000 and N26,000 Now, a of rice goes for N350 from N200/N250 before. Many people are daily earners; how do you want them to manage with this astronomical increase? Let us not even talk of frozen foods, is our saviour now,” she said.
She, however, observed that the closure hasn’t prevented the smuggling of rice or frozen food items into the country, adding that it only made them more expensive. “Every day, (smugglers) are still bringing in rice and other items; the only problem is that it is now more expensive. For frozen foods, if you don’t have a designated driver to help you bring your goods in, you will have to join queue and your goods can spend several days in a warehouse before it is moved into Lagos. If you are not careful, you can incur a huge loss,” she noted. Kosobameji said the business has become less profitable for her, saying she was thinking of selling both local and imported rice. “That is what people are doing now and it is more profitable. On the imported rice, the maximum profit was less than N1000 but with this one, you can see up to N3, 000 profit per bag. The rice is being brought from Kano and it costs about N8 million per container. If you can get one or two or three other people to share the capital with, you bring the container down here and willing buyers are already on ground to offload the goods from you, you get your money with profit fast. You mix it with the imported rice and sell at that price. The only thing I would advise traders is that if you are not strong, just leave the frozen food business for now; otherwise, you will incur loss. Customers don’t usually buy the Nigerian chicken. They complain that it is not as good as the imported one; so it doesn’t move market,” she revealed.
Mariam Adigun, a frozen food seller, shares the impact of the ban on sales. Her words: “This border closure was so sudden and now sales have gone down drastically. Before, if you come around this time I won’t even be