Nigeria’s 3,108 tonnes cotton seeds export not enough to tap into global $38.45b cotton market

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Kano, Kaduna, Oyo, Ondo, Kwara, Katsina, Jigawa, Ogun, Kebbi, Sokoto & Zamfara state fails to tap into global $38.45b cotton market, Naija247news research shows

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According to the International Trade Centre statistics, Nigeria exported 3,108 tonnes of cotton seeds put at $2.104million in 2020.

Countries, which imported from Nigeria were Ghana,United Arab Emirates,Japan, India, Vietnam, Chad, China and Greece.

Cotton has been a major cash crop in Africa, mainly in Nigeria, the areas cotton is grown in Nigeria is concentrated in the Savannah belts of the country which is the Northern & South Western Nigeria

Research and Markets, an international research report projects that the Global Cotton Market hit $46.56 billion by 2027, with a compound annual growth rate(CAGR ) of 2.74 per cent within this period.

According to World Population Review, the 10 largest producers are India,China, United States, Pakistan, Brazil, Uzbekistan, Australia,Turkey, Argentina and Greece.

In Africa, Indian-based business intelligence firm, Mordor Intelligence, listed the top producers in Africa to include Benin, Mali, Burkina Faso, and Ivory Coast and that they account for about 50 per cent of the region’s produce.

Also, the Africa Cotton Market is expected to register a CAGR of 3.5 per cent in the Forecast period (2020-2025).

Sadly, Nigeria’s exports represent 1.1 per cent of world exports.

West Africa comprises 12 cotton-producing countries, namely Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal, and Togo.

Mali and Burkina Faso are the largest producers, according to the Foreign Agricultural Service of United States Department of Agriculture (USDA) said.

Africa produces about 2.5 million tonnes of cottonseed, which is 5.8per cent of global production.

Stakeholders said farmers are unable to access the various intervention funds rolled out by the government, including the N50 billion revival funds, N100 billion Cotton, Textile and Garment fund (CTG fund).

However, the Central Bank of Nigeria (CBN) is working hard to increase cotton production.This year, almost 130,000 cotton farmers have benefited from the intervention of the apex bank through the Anchor Borrowers Programme.

CBN Governor, Godwin Emefiele had said: ”CBN is on a journey to resuscitate the #CTG sector with a plan to increase cotton production, capacity of ginneries and textile companies in the country.’’

He said CBN will be working with associations that have repaid at least 70 per cent of their loans to cultivate about 80,000 hectares of land with an average output of 120,000 metric tonnes at 1.5 metric tonnes per hectare.

Recently, the cotton market witnessed a marginal rebound almost two years after the CBNblocked traders from having official access to forex for the importation of textiles into the country.

The volume of production and consumption of cotton rose by at least 7.5 per cent in 2020 after the figures dipped the previous year.

By 2019, when the CBN restricted foreign exchange for textile products imports in a bid to revive the local fabric production industry, Nigeria’s cotton production stood at 920,000 metric tonnes while consumption stood at 805,000 metric tonnes.

In 2020, a year after, production surged to 1.6 million metric tonnes while consumption jumped to 989,000 metric tonnes.

As of 2016, International Cotton Advisory Committee (ICAC) said Nigeria’s cotton production was 51,000MT on 253,000 hectares, its consumption and exports were 28,000MT and 25,000MT.

According to the United Nations Centre for Trade and Development (UNCTAD), over 3.5 million farmers in Africa depend on exports of raw cotton lint.

Daniel Essiet contributed to this story


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Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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