The current challenging economic times that Nigeria is passing through provides huge opportunities to exploit enormous potentials that exist in many other non-oil sectors for wealth creation. This however requires that we not only go back to basics but also think and act differently. The current Nigerian government is vigorously encouraging the diversification of the economy which sadly has been dependent on one major commodity, oil. In consonance with this imperative, we at TAFRIC Invest Nigeria Limited have decided to turn the current challenges to opportunities by looking at aspects of the agro-processing value chain for attracting investments.
TAFRIC Invest was set up for such a time as this. Though incorporated since 2008, the current situation has now provided us the impetus to explore our wide contacts around the world, through the International Christian Chamber of Commerce (ICCC) as well as other connections to try to source investment resources to serve the Nigerian market. We are also encouraging local investors as well as other sources of investment resources for strategic collaboration to tap into the current opportunities knowing that these opportunities may not last forever.
TAFRIC Invest is also exploring various government interventions as well as others available through international agencies that are keen to see the Nigerian economy develop to its fullest potential. We are currently exploring any level of strategic assistance and incentive that may be available through the Federal Ministry of Trade and Investments among other agencies to assist us to achieve our stated objective of using investment resources to enhance value-addition in the agro-related sector. In particular we are interested in sourcing investments in processing of certain commodities for both local consumption as well as the export market. Some of these commodities include but not limited to Ginger, Sesame Seed, Share Nuts, Soya Beans, Moringa, etc.
- Ginger
Currently we are working with ginger farmers in Kaduna State to both enhance ginger out growers as we as off-take their products for local processing to meet certain market requirements. We are also exploring potential and existing international markets for exports so as to earn the much needed foreign exchange as well as develop the local economic base through industrialization. Projected volume of fresh ginger production is currently about 60 metric tons per annum. This is bound to increase significantly given all the incentives and government intervention with the Anchor Borrowers Programme (ABP) of the Central Bank of Nigeria. - Shea Nuts
Shea nuts, from where Shea butter is derived, grow in about 21 States in Nigeria. However much of these are wild Shea trees and has the potential to produce about 330,000 metric tons per annum. Nigeria is still the world leading producer of Shea nuts based on the Food and Agriculture Organization (FAO) 2010 statistics. However much revenue from this product is currently being lost through smuggling.
- Sesame Seeds
This seed which has rich oil content (40-60%) grows predominantly in the northern parts of Nigeria in the states of Nasarawa, Jigawa, Benue and Taraba along with about 5 other states. Available data shows up to 50,000 metric tones ready for processing or exports. - Soya Beans (Taraku Mills in Benue State)
There is a 72,000 metric tones soya bean plant near Taraku in Benue State, Nigeria. This plant can also process up to 120,000 metric tones of maize into vegetable oil, maize flour, brewers grits as well as animal feed grits. Soya bean can be processed here to produce vegetable oil (crude and/or refined) as well as soya-meal.
Benue State has decided to lease out the factory to interested investor. This plant has the potential to break even at only 25% capacity utilization. This is indeed a good mine!
POTENTIAL AREAS OF INVESTMENTS
The current areas of opportunity for collaboration include but not limited to the following:
- Investments collaboration for the processing and marketing of ginger and other commodities for both the local Nigeria markets as well foreign outlets.
- Capacity building in any aspects of the value chain to enhance our ability to guarantee quality products for the international markets.
- Investment assistance for farm mechanization processes as a business to guarantee sustainable inputs to the processing facilities.
- Facilitation of export channels for any of these commodities
- Any other strategic aspects of investment for industrial development, trade facilitation.
TAFRIC Invest in advancing this objective has already signed an MOU with ginger farmers association in Kaduna State. We have also been appointed as Off-taker for Ginger in the Kaduna State Anchor Borrowers’ Programme (ABP) of the Central Bank of Nigeria to enhance the production and sustenance of the ginger business.