Nigeria on Thursday began to export yams to Europe and the
United States, as part of moves to diversify its oil-dependent economy and earn
much-needed foreign exchange.
Agriculture minister Audu Ogbeh flagged off the first
consignment of the fibrous tuber from the port in the country’s economic
capital, Lagos.
“Oil and gas cannot employ millions of people just like
agriculture so we must work hard to move from oil to earning foreign exchange
from agriculture,” he said on Wednesday.
Ogbeh told a news conference inspection charges on export
produce would be reduced to encourage more overseas sales and greater
competition.
“To make yam competitive, we will work on the packages and
the right types of trucks to be used for transportation of the produce,” he
said.
According to the UN Food and Agricultural Organization
(FAO), Nigeria accounts for 61 per cent of the world’s total yam output. Ogbeh
said not all of it was consumed, causing waste.
But with food shortages in conflict-hit parts of the
country’s northeast and food inflation nudging 20 percent, there are fears the
policy could hit consumers in the pocket.
Yams, a staple grown across Nigeria, have gone up in price
since last August when the country slipped into recession as a result of low
global oil prices.
Nigeria relies on crude oil sales for 90 percent of foreign
exchange earnings and 70 percent of government revenue.
But the worldwide oil slump slashed revenues, weakened the
naira, pushed up inflation and stalled investment prompting the government to
look to the non-oil sector to stem the tide.
“The (yam export) policy is going to compound our
suffering,” said Lagos housewife Bolanle Akintomo.
“A tuber of yam that used to sell for between 200 and 300
naira (63-95 US cents, 56-83 euro cents) is now 1,000 naira ($3.2, 2.8 euros).
“With exports, the price will further go up.”
The National Association of Chamber of Commerce, Industry,
Manufacturing and Agriculture said incentives were needed to produce enough
yams for local and overseas consumption.
“There may be an increase in prices at the short-term but
the prices will fall as more yams come to the market,” a NACCIMA official said.
Denja Yaqub of Nigeria Labour Congress (NLC), said the
initiative could encourage farmers to increase output, earning foreign exchange
for the cash-strapped economy.
“The policy will also make our agricultural produce
competitive in the international market,” he added.
Yaqub said the government needed to reduce fuel costs for
farmers, upgrade roads and improve storage facilities to cut waste in the
supply chain and ultimately lower prices.
AFP
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