Nigeria’s Agricultural Exports Up by 48% Amid Weak Naira in 2023

A BusinessDay analysis of the latest foreign trade in consumer goods report shows that Nigeria’s agricultural exports surged by 48% in 2023 to N1.24 trillion compared to N598.16 billion in 2022. This increase was largely driven by the depreciation of the naira, which resulted in the higher value of agricultural exports in naira terms.

According to industry experts, the surge in agricultural exports is not only due to the weakening of the naira, but also to the increase in global food prices. Cocoa prices, for example, have more than doubled in the international market, boosting the value of Nigeria’s top export crop.

Abiodun Olorundero, a managing partner at Prasinos Farms, added that while the naira’s depreciation and rising global food prices have contributed to the increase in Nigeria’s agricultural exports, insecurity in the country remains a significant challenge for farmers and the overall sector.

He said, “this surge compared to the value generated in 2022 is attributed to a price surge in our cash crops like cocoa, sesame seeds, and the like.

“The naira devaluation is another factor that contributes to the surge in value terms.”

Olorundero equally added that if insecurity is tackled in the country, the value of agric exports will surge by about 200 percent in 2024, an increase he believes is not “impossible”.

“Without insecurity pursuing many farmers from their farms, we would have a surge of about 200 percent, which is not impossible,” he added.

The sector accounts for 21.87 percent of total non-oil exports ($4.5 billion) in 2023.

Culled from BusinessDay