As the quality of their products improves, Okomu Oil and FTN Cocoa’s export sales increased by 205.6 percent in the first nine months of 2024.
Okomu Oil and FTN Cocoa recorded total export sales of N16.5 billion in the first nine months of 2024 (9M’24), up from N5.4 billion in the same period the previous year, according to THE NEWS CHRONICLE’s research.
An environment favorable for exporters has been established by the Central Bank of Nigeria’s (CBN) foreign exchange reforms, which included a market-driven approach and the unification of exchange rates.
Nigerian agricultural companies have become more competitive globally and are generating more income from export deals as a result of the naira’s depreciation versus the dollar.
According to data from the FMDQ Securities Exchange Limited, the naira gained 0.97 percent after trading on Thursday, November 28. The dollar was quoted at N1,644.86, as opposed to N1,660.83 on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
According to the National Bureau of Statistics (NBS) Foreign Trade Statistics, Nigeria’s agricultural exports reached N2.14 trillion in the first half of 2024, or roughly $1.53 billion in US dollars. This represents an increase of 241% year over year from N626 billion in H1 2023.
However, while agribusinesses listed on the NGX made roughly N16.5 billion from exports during the review, most of Nigeria’s unlisted companies have contributed to the country’s agricultural export growth.
Analysts in the industry credit this remarkable expansion to the rising worldwide demand for Nigerian agricultural products, including cashew nuts, cocoa, sesame seeds, and palm oil.
For example, FTN Cocoa claimed a reversal in export sales of N637 million from cocoa butter, while Okomu Oil reported a 194% rise in export revenue over the previous year.
With the construction of its soybean crushing plant in 2023, Olam Nigeria, an unlisted business, has emerged as a major supplier of processed agricultural products.
Olam is also a major exporter of cocoa beans, sesamum seeds, and cashews from Nigeria.
Presco, one of Nigeria’s top-performing agribusinesses, did not receive any income from sources outside the country for nine months. This pattern raises concerns about Nigerian agribusinesses’ capacity to enter foreign markets successfully.
Furthermore, despite Nigeria’s efforts to boost non-oil exports, large corporations like BUA Foods cannot generate a single dollar outside of Nigeria, which raises questions about the country’s agriculture plans with export diversification ambitions.
Subsequent investigation shows that the NGX’s agriculture-focused companies generated a gross turnover of N261 billion trillion in the first nine months of 2024, up from N151.7 billion.
The highest profit of N128.5 billion from N78.6 billion was reported by Presco Plc, followed by Okomu Oil, which increased from N60.6 billion to N103.9 billion, Livestock Feeds, which increased from N14.3 billion to N28.6 billion, and FTN Cocoa, which reported a profit turnaround from a loss to N637 million.
