Sesame seeds have emerged as a standout player among Nigeria’s agricultural exports, commanding attention on the global market.
The country’s robust sesame seed industry has witnessed significant growth, showcasing Nigeria’s prowess in contributing to the international trade of this sought-after commodity.
According to saharareporters.com, However, the approach to sesame seed exports, primarily as raw materials, leaves much to be desired. The seed market was valued at around $7.35 Billion in 2022 and is estimated to reach $9.27 Billion by 2032, making it a relatively promising sector of the agricultural industry.
Sesame seed production has a long history in Nigeria, and the producers of the seeds are spread across the northern states. The current leading producers are Jigawa, Nasarawa, Benue and Sokoto. Other significant producers include Kano, Katsina, Yobe, Gombe, Kogi, and Plateau states.
Nigeria is also leading in the global production of sesame seeds. As of 2022, the top five global leaders in sesame seed production are Sudan, India, Myanmar, Tanzania and Nigeria. It even gets better when we account for exports; Nigeria is the third largest exporter of the seed after Sudan and India. Nigeria produced an estimated 450,000 tonnes in 2022, which is 7.1% of the global supply. When you put the monetary value into context, the sesame seed contributes significantly to the inflow of foreign exchange into the country.
Despite being among the top global producers, Nigeria lags in adding value to this valuable commodity. Rather than investing in local processing industries, the country has been exporting sesame seeds in their raw form to countries like China, where they produce lesser amounts. This approach represents a missed opportunity to make sesame seeds a significant contributor to the country’s economic growth and job creation within the country.
One of the obvious areas for improvement of Nigeria’s competitive export strategy is its failure to capture the economic benefits of value addition. By exporting raw sesame seeds, Nigeria forgoes the opportunity for higher export revenues and the creation of skilled jobs in the processing and manufacturing industries. The sesame seed value chain offers numerous opportunities for added value, from oil extraction to the production of sesame-based products such as tahini, confectionery, and cosmetics. These value-added products have higher profit margins than raw seeds and could significantly boost the country’s income from sesame exports.
READ: News: Nigerian Customs Says Sesame, Ginger, Hibiscus Top N70.2bn Agric Export From Apapa
The agricultural sector in Nigeria is a substantial employer, with over 35% of the population engaged in agricultural activities, according to the World Bank data of development indicators. However, most of these jobs are in subsistence farming, characterized by low productivity and income levels. Developing a local sesame seed processing industry could provide a lifeline for rural communities and smallholder farmers. It would create jobs not only in processing plants but also in related sectors such as logistics, packaging, and marketing. This approach aligns with the government’s goal of reducing unemployment and poverty in the country.
Of course, we cannot deny that the reliance on oil exports has exposed Nigeria to global price fluctuations. The unstable condition of the Naira and its volatile position against world currencies, coupled with a high demand for foreign exchange, is also adding to the poor economic state. The surge in sesame seed exports in 2022 reached an estimated value of $331 million, representing a substantial contribution to foreign exchange supply. However, this windfall could be even more significant if Nigeria were to process sesame seeds locally, adding value and commanding higher prices in the international market.
Overall, the country’s current approach of exporting raw seeds represents a missed opportunity for economic growth, job creation, and foreign exchange earnings.
Critiquing Nigeria’s export strategy for sesame seeds should not be perceived as an exercise in fault-finding but rather as a call for policy reorientation. The government must take proactive steps to incentivize investment in sesame seed processing facilities. This could involve providing incentives like access to finance, less complicated foreign exchange policy, ease of doing business and technical support to entrepreneurs willing to venture into value addition.
Nigeria’s status as a major sesame seed producer and exporter holds immense promise. To fully exploit the potential of the sesame seed value chain, Nigeria must re-evaluate its strategy and prioritize the development of a local processing industry. The strategy is one of the low-hanging fruits the policymakers need to see. It will not only boost export revenues but also contribute to the agricultural sector, rural development, and economic diversification, aligning with the country’s broader economic goals.
