NIGERIA Invest in 2012-13 - Newsdesk Media

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agriculture and water
sesame and cashew,” Mathur said. “We are closely aligned
with the Nigerian government’s efforts to develop local
content and capacity in rice production and milling, and
in particular to address the growing level of imports to help
tackle issues of food security.”
The relative underdevelopment of the country’s
agricultural resources and the fragmentation of its producers
meant that the company, listed in Singapore, saw that
investment in the right areas would reap returns.
“Nigeria is endowed with natural resources like fertile
soil, perennial water supply through various rivers and climatic
conditions that are suitable for a range of tropical crops, yet
the yield of most crops is significantly below global averages
and could be doubled in output before they even reach the
average global productivity levels – so there is high potential
for improvement,” Mathur says.
“Olam’s business is built on sustainable supply chains,
one crucial aspect of which is developing close relationships
with farmers. These relationships enable us to identify areas
where we can contribute towards improving yields, while
making the farming more sustainable. Therefore, investing in
Nigeria is a good strategic fit.”
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
source: World Bank
invest in nigeria 2012-13
1,171.4
1,233.5
1,255.2
1,308.8
1,372.8
1,421.6
1,507.4
1,399.8
1,598.4
1,528
1,413
The company is working with research institutes,
including the International Institute of Tropical Agriculture
(IITA) and with international development agencies, including
the United States Agency for International Development
(USAID) and the UK’s Department for International
Development (DFID), in order to offer smaller farmers
extension services, training and seeds at concessionary rates
to help to increase their outputs.
Nigeria’s physical size means that it straddles a number
of climatic zones, and has the potential to develop cash
crops currently dominated by its regional neighbours.
Cote d’Ivoire remains one of the world’s largest producers
of cocoa for the international market and, along with
Guinea, exports significant volumes of cashew nuts, while
Ghana has a thriving fruit sector.
The river deltas, synonymous with the oil industry, are
fertile ground for rice production. Rice consumption is growing
in the region, and with investments in milling facilities
creating processing hubs, the potential to supply West Africa
with grain is huge. The country produces around 3.5-4.5
million tonnes of rice per year in its current unstructured state,
importing as much as 500,000 tonnes annually to meet the
33.02%
Arable land
Nigeria’s cereal yield (kg per hectare)
910,768 sq km
Total land
3.14%
Permanent crops land
63.84%
Other
As of 2005, source: CIA Factbook