Nigeria’s economy has long been defined by oil. Petroleum accounts for over 95 percent of foreign exchange earnings and the lion’s share of government revenue. But this dependence has come at a heavy cost. The “resource curse” — the paradox where resource wealth undermines development — has stifled growth in other key sectors, particularly agriculture and manufacturing. The oil boom of the 1970s led to neglect of these productive areas, triggering urban migration, rural poverty, and deteriorating social infrastructure.
Today, as global energy dynamics shift and oil prices fluctuate, Nigeria faces a pressing need to diversify its economy. And nowhere is the potential for transformation greater than in agriculture, the traditional backbone of the nation’s prosperity.
The Promise of Non-Oil Exports
Non-oil exports — largely driven by agriculture — are increasingly recognized as Nigeria’s untapped goldmine. Crops like cassava, groundnut, sesame, cocoa, cashew, ginger, and hibiscus have long been cultivated across the country, offering vast potential for export earnings and job creation.
In the 1970s, agriculture contributed about 40 percent of Nigeria’s export share; by 2010, that figure had fallen to just 5 percent. The decline underscores the urgency of modernizing agricultural systems and rebuilding competitiveness through improved productivity, value addition, and quality assurance.
Studies consistently show that non-oil exports contribute significantly to GDP growth, create employment, and strengthen economic resilience. Unlocking this potential requires coherent policies and strong partnerships that connect Nigerian farmers to global value chains.
Nigeria’s Key Export Crops
Cocoa:
Nigeria is the world’s fourth-largest cocoa producer, contributing roughly 6.5 percent of global output and earning more than $700 million annually. With 1.4 million hectares under cultivation and a long harvest season from October to June, Nigerian cocoa is prized for its smooth, aromatic flavor and low impurity levels. While raw bean exports dominate, a growing local processing industry is adding value through cocoa butter, liquor, and powder — expanding export potential and jobs.
Sesame Seeds:
The country ranks seventh globally in sesame production, with smallholder farmers driving more than 90 percent of output. Cultivated mainly in the northern and central regions, sesame exports account for about 80 percent of total production, reaching markets in Asia and the Middle East. Nigerian sesame boasts high oil content and year-round availability, giving it a competitive edge.
Ginger:
Nigeria is the largest producer of ginger in Africa and the fourth globally, contributing 14 percent of global output. Renowned for its strong flavor and high oleoresin content, Nigerian ginger enjoys robust demand across Africa, the Middle East, and Europe. Nearly 90 percent of production is exported, providing income for thousands of smallholder farmers — many of them women.
Cashew:
With cultivation across 19 states, Nigeria ranks fourth worldwide in cashew production. Its high kernel yield and consistent quality make it a sought-after commodity, especially in the U.S. and Asian markets. A burgeoning processing sector is adding value locally, while women — who make up over 70 percent of the processing workforce — benefit from expanded income opportunities.
Hibiscus:
Known locally as zobo and botanically as Hibiscus sabdariffa, hibiscus has become a breakout star among Nigeria’s non-oil exports. Driven by global demand for natural, health-based products, Nigeria exports between 80,000 and 100,000 metric tonnes annually to markets in Europe, North America, and Asia. Its deep-red calyces, rich in antioxidants, have made it a global favorite for teas and beverages.
Persistent Challenges
Despite its potential, Nigeria’s agricultural export performance is constrained by systemic bottlenecks:
Poor Infrastructure and Post-Harvest Losses: Inadequate rural roads, unreliable power, and limited cold-chain systems cause high spoilage rates. Transportation bottlenecks and delays at ports further erode product quality.
Inconsistent Quality Standards: Weak quality control and poor post-harvest handling often lead to contamination and rejection in export markets.
Limited Access to Finance: Many farmers lack affordable credit to invest in technology and meet export standards.
Cumbersome Export Procedures: Complex documentation and bureaucratic delays discourage participation from small and medium-scale exporters.
The Policy Imperative
Nigeria’s policy landscape for non-oil exports has evolved, yet gaps remain in implementation and coherence. Several key policy areas need strengthening:
Trade Liberalization and AfCFTA:
The African Continental Free Trade Area opens new regional markets but also exposes Nigerian farmers to tougher competition. To benefit, Nigeria must raise productivity and quality while protecting vulnerable producers.
Export Promotion and Incentives:
Programs like the Anchor Borrowers’ Programme (ABP) and Export Expansion Grant (EEG) are valuable tools but require better targeting and transparency. Simplified access to credit and digitized export procedures would lower entry barriers.
Infrastructure and Logistics:
Prioritizing investment in rural roads, modern storage, and cold chains is essential. Efficient port operations and border processes can dramatically reduce costs and turnaround times for exporters.
Standardization and Regulation:
Agencies like NAFDAC and SON must be empowered to enforce food safety and quality standards that align with international requirements. Certification schemes such as GlobalGAP, Fair Trade, and organic labeling should be widely supported to enhance market access.
Financing and Support Schemes:
Expanding CBN and BOI interventions, alongside export credit insurance and tax relief for export-oriented farmers, can strengthen competitiveness and de-risk investments in agribusiness.
Partnerships: The Game Changer
Transforming Nigeria’s non-oil export landscape will require partnerships that unite government, private sector, development partners, and technology innovators around a shared vision.
Public-Private Partnerships (PPPs):
Government collaboration with agribusinesses can drive scale and quality. Programs like NIRSAL have successfully de-risked agricultural lending, while initiatives such as the AgResults Aflasafe Pilot have improved maize safety for export.
International Development Partners:
Donor agencies — including USAID, IFAD, and the AfDB — have played a vital role in funding infrastructure, training farmers, and promoting technology adoption. Their programs support value-chain development, youth inclusion, and climate-smart agriculture.
Technology and Innovation Partnerships:
Agri-tech platforms connect farmers directly with export buyers, while fintech solutions enable digital payments and credit access. Blockchain-based traceability systems are now helping Nigerian exporters meet stringent international standards.
The Road Ahead
The future of Nigeria’s economy lies not in oil rigs but in the fertile soils of its farmlands. By aligning policies, investing in infrastructure, and fostering strong partnerships, Nigeria can reclaim its position as an agricultural powerhouse and a major player in global trade.
Empowering farmers with access to finance, technology, and global markets is not just an economic necessity — it is a national imperative. With the right mix of policy consistency and collaborative effort, Nigeria’s non-oil exports could drive a new era of inclusive growth, resilience, and prosperity.
