Despite complaints by local millers, a total of 1.25 million tonnes of soya beans valued at N774 billion ($484 million) has been shipped from Lagos and Tincan Island ports to Pakistan and India in the last one year.
The millers said massive export of the commodity had forced the price to increase by 22 per cent this year.
According to Volza’s Nigeria Export data, the millers said that high demand by the exporters had made the price of commodity to increase from N330,000 price per tonne to N425,000 a tonne, noting that the development had forced many of them to back off and were considering other measures to survive the price upsurge.
Nigeria exported 2,430 containers of soya beans between March 2023 and February 2024. The exports were made by 66 exporters to 61 buyers, marking a growth rate of 3,757 per cent compared to the preceding 12 months.
The data explained that in February 2024 alone, 360 soya shipments were made from Nigerian ports, leading to a year-on-year growth of 360 per cent compared to February 2023 and a -43 per cent sequential growth from January 2024. Globally, the top three exporters of Soya Bean are Ukraine, India, and United States.
Ukraine leads the world in soya bean exports with 32,594 shipments, followed by India with 13,271 shipments and United States taking the third spot with 9,866 shipments. The Comptroller of Nigeria Customs Service (NCS)’s Area Comptroller, Tincan Island Command, Dera Nnadi said that in terms of value, soya beans was the highest export commodity worth N92.05 billion, between January and June 2024 from the port alone.
Also, data by Index Mundi, a global trade portal revealed that the country has produced 2.15 million tonnes of the oil seed in the last two years. The local tonnage of the beans made the country to become the largest producer of the beans in sub-Saharan Africa.
Meanwhile, Kano-based soya beans miller, Idris Nazir, said this year’s market high demand by the exporters made the the price of commodity to increase from N330,000 price per tonne, N425,000 a tonne, noting that the development had forced many of them to back off and are considering other measures to survive the upsurge.
He added: “This year’s soya beans market had opened on N330,000 per tonne, but as the demand by the exporters increases, the price went up to N425,000; and it is still going up. It is clear that not all oil millers can afford to continue in such a tight business environment.
It is so scarring because cooking oil and other related products would soon be inaccessible to many people.” Also, the chairman of the Kano State All Farmers Association of Nigeria (AFAN), Alhaji Abdulrasheed Magaji Rimin Gado, said that the current development in soya beans production was attributed to the law of demand and supply.
He said soybeans farmers recorded a bumper harvest this year and the demand had increased so much due to the activities of exporters. He stressed that since there is no law that prohibits the export of the commodity, the association could not do anything but advise farmers and the authorities concerned.
He said the development was indeed a threat to Nigeria’s food security. Findings by New Telegraph revealed that the huge production was a result of the anchor borrower scheme introduced by the Central Bank of Nigeria (CBN).
Recall that in 2023, four vessels were loaded with 33, 600 tonnes between February and March, 2023 at the Lagos Port. According to the Nigerian Ports Authority (NPA)’s shipping data, Breadbox loaded 6,600 tonnes of the beans at Lagos Port;
Vantage Sword, 10, 000 tonnes; Universe, 12,000 tonnes and Unisun, 5,000 tonnes. Also, data from the National Bureau of Statistics (NBS) revealed that a total of N14.2 billion soyabeans were exported in 2020 following 60 per cent increase in production.
In the past, the country was only able to produce 731,000 tonne between 2015 and 2016 . Before the huge production, statistic by NPA’s shipping position revealed that the country had imported some 825,000 tonnes of the beans from United States between 2015 and 2017 as infant food manufacturers in the country depended on the beans as alternative to cow milk because of its high nutritional value.
In 2017, the country took delivery of some 47, 476 metric tonnes through the Lagos Port Complex in Apapa. In the period, MV Noro Shanghai and MV Marina L. berthed with 30,476 metric tonnes and 17,000 metric tonnes of soybeans respectively.
Also it imported 275,000 tonnes annually in 2015. Between 2014 and 2013 the country imported 121, 000 tonnes and 100,000 tonnes respectively to support local demand.