In a recent interview, Malam Aliyu Isa, the national president of the Onion Producers, Processors, and Marketers Association of Nigeria, shed light on the significant challenges facing Nigeria’s onion industry.
The main factors contributing to the rise in onion prices, particularly in the northwestern region, were discussed, including issues with the planting season, difficulties accessing cash, and the impact of the naira redesign in 2022 to 2023.
Isa explained that the shortage in onion production due to challenges faced by farmers has led to a surge in prices, with costs skyrocketing from N5,000 to N13,000 within a short period.
The situation worsened in 2023, with prices exceeding N100,000 per bag. The demand for onions in Nigeria stands at 2.5 million metric tonnes, while the country produces only 2 million metric tonnes, resulting in a deficit of around 1 million metric tonnes.
Addressing the issue of exporting despite domestic deficits, Isa highlighted the need for sophisticated facilities to preserve perishable items like onions. He emphasized the significance of addressing post-harvest losses to ensure sustainable production.
The lack of preservation facilities has led to a situation where Nigeria not only struggles to meet domestic demand but also faces challenges in exporting due to the perishable nature of the product.
Isa also touched upon the efforts to attract investors for storage facilities, mentioning ongoing projects by Indian groups and Tesco Nigeria Limited. He called on the government to create an enabling environment to attract more investors and stressed the importance of addressing insecurity.
One critical aspect affecting the onion industry, according to Isa, is the economic sanctions imposed by ECOWAS on Niger Republic. The closure of borders with Niger has severely impacted the ability to export onions, resulting in a loss of approximately USD 429 million. The entire northwestern region has been affected, with borders closed except for a limited access point at the Tsamiya axis.
Isa urged caution, emphasizing the shared African brotherhood, and warned against committing crimes against humanity amid the tensions between Nigeria and Niger. The economic losses extend beyond the onion industry, with other commodities, such as cement, facing challenges in reaching Niger due to closed borders.
