Home / Cargo/Handling / Nigeria losing over N3.6 trillion to lack of agro export opportunities – Report

Nigeria losing over N3.6 trillion to lack of agro export opportunities – Report

A recently published report states that
Nigeria is losing about N3.6 trillion to export opportunities from agricultural commodities due to lack of operational  and investment opportunities and needs to resolve these challenges to help create new Jobs, reduction in cost of perishables, healthy food to aid food security among other benefits.
According to the report obtained from a recent workshop on Agro Air Logistics with Sub theme ‘Enhancing Air Transport Support for Perishable Goods’ at the Airport Business Summit and Expo 2018, operational and investment gap between the Agro Perishable industry and the aviation sector, is hindered by myriad of factors.
The official document signed by the Managing Director of  FCI International limited , Fortune Idu, listed the challenges to include: distance of production site to the market, high prices of perishable goods coming from loss along the supply chain, insecurity hindering sustained production and evacuation, multiple levies, poor transportation, poor logistics infrastructure, power, relatively crude local market, poor access to international the market, lack of comprehensive agro air logistics policy, clustering and touting at the freight corridor, de-marketing of Nigeria and lack of professional manpower placements.
Others as revealed by the report are: Low government support to private investors, discontinued previous air cargo projects by Federal Airports Authority of Nigeria (FAAN) and non-expansion of the air cargo apron of the Murtala Muhammed International Airport (MMIA) project currently abandoned.
If these challenges are resolved, the report stated that, there would be more new Jobs, new airport revenue, reduction in cost of perishables, healthy food to mitigate food security, increased revenue for airlines, support to government plan for ranching, creation of investment opportunities into special cargo services and promotion of investments into cold chain logistics
Recommending some ways to close the gap, the report stated that there is need for stronger government policy on agro perishable air logistics and that there should be an  establishment of a perishable goods unit in all airports to enable all airports capacity provide support for warehousing, handling and transportation of the perishable cargo through the country and beyond.
“There is also need for the establishment of one stop quality Inspection machines along the air logistics chain  that allows shippers to access customs, quarantine, Standard Organization of Nigeria (SON) and National Agency for Food and Drug Administration and Control (NAFDAC) services  for both local and international freighting. We need to promote further development of the Airport Free Trade Zone to strategically drive the perishable air cargo potentials under private public sector agreement”.
“That Federal Ministry of Transportation, Aviation to advocate for the revisiting and review of the past air cargo programme of FAAN in order to implement the project under a PPP arrangement as government has already invested capital.
“Establishment of a joint committee of Ministry of Transportation Aviation, Agriculture, Federal Ministry of trade and Investment and relevant agencies and organisations to develop policies that will revolutionize cold chain operations in Nigeria and attract investment into cold chain logistics. That effort should be made to address the national power challenges in the country by looking into alternative sources of energy and promote independent regional generation”, it stated.
The report pointed out that encouragement of private sector investment is key for addressing these challenges and sustaining the process of making Nigeria an international player in the agro and perishable export sector; therefore government should create the right environment and leadership that will allow the private sector to have confidence in long term investment.
It equally noted that introduction of export cargo growing promotion tax incentives may be required to be extended to private investors who want to develop perishable cargo handling centres along the transport corridor.
 “The exploitation of unmanned aerial vehicles in agro business and the encouragement of research and youth engagement in this new technological area for possible perishable cargo delivery and to provide connectivity to remote farm areas”, the report recommended.
The 5th annual Airport Business Summit and Expo for Africa (ABSE) aimed at closing the gaps between the air transport sector and agro sector with the sub theme ‘Enhancing Air Transport Support for perishable goods was conveyed by FCI International limited led by Fortune Idu.
It was designed to engage both sectors in a discussion aimed at resolving challenges that hinder the seamless transportation of perishable goods to both the local and global markets.
With 120 delegates in attendance drawn from  both the private and public sectors, representing 23 Federal airport regions, all the agencies of the Aviation sector, Nigerian Shippers’ council, the representatives from the developing airport in Bayelsa State, Nacho Free Trade Zone, Red Star Express, Federal Ministry of Industry, Nexim Bank, Kebi State and others.
The workshop assessed the potential of both sectors to help meet food security challenges and enable the exploration of international markets which it believes will help save the nation  the estimated 50% loss in value and quantity of perishable goods due to the  poor logistics chain.

 

About anthony omoh

mm
I am a Journalist with a passion for developmental stories and nigerianflightdeck.com was born out of passion for reporting the travel, business and aviation sub-sector. This site is an expression of my ideals and creativity as a reporter and my discretion as a publisher. I am extremely content doing this and I am sure when you read my stories you'd understand that I touch people and that's why

Check Also

Rodger Whittle appointed Executive Director of Resort Group

THE board of the Resort Group has announced the appointment of Mr. Rodger Whittle as …

Aero set to return aircraft from France; to roll out second 737-5 after C-Check

REPORTS are rife that Aero Contractors may be rolling out a second aircraft , its Boeing …

NAIA embark on massive sensitization drive on FOD

AS part of efforts to safeguard aircraft from unnecessary damages, staff of the  safety services …

FAAN warns security personnel to adhere to restriction rules, gears up for Eid El Kabir

AHEAD of this year’s Eid El Kabir celebrations, the Federal Airports Authority of Nigeria (FAAN) …

15 Dubai companies to showcase at Akwaaba Travel Market

NO fewer than 15 companies from the Dubai, the United Arab Emirates (UAE)will be attending …

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this:
Skip to toolbar