Nigeria's cocoa sector is still waiting

One year on from the election of President Muhammadu Buhari, Nigeria is still awaiting the promised policies to boost the cocoa sector, whose growth is seen as vital to offset a slump in oil revenue that has plunged the economy into crisis.
Buhari routinely states the need to expand the agricultural sector to end the reliance of Africa's biggest oil producer on crude exports and cut its 20 billion U.S dollars annual food import bill.
A priority is to develop cocoa farming, the only sizeable agriculture sector in the continent's biggest economy to have survived government neglect since the 1950s oil discovery.
But Buhari's policies have not yet made it beyond the talking stage.
For cocoa processors, Buhari's foreign exchange policies have added to a crisis, as grinders struggle to get dollars to import spare parts, since the central bank has imposed hefty curbs to support the naira.
This, combined with high bean prices, Nigeria's high transport costs and sporadic power supply, have driven up production costs, causing several plants to shut in recent months.
Cocoa farmers in Nigeria, the world's fourth-largest grower, have recently enjoyed bumper profits, but this is due to high global prices for raw beans rather than government intervention.
Akin Olusuyi says his plant's output fell to 4,000 tonnes last year, a fraction of its 30,000 tonnes capacity.
"We have started shutting down already. As I'm talking to you, there are about eight processing factories in Nigeria and I think as I'm talking now, I think only three or four of us are in operation and in operation epileptically. We are just surviving not living really, not living," said the Cocoa Products (Ile-Oluji) managing director who is based in southwestern Ondo, the country's largest cocoa producing state.
So far the clearest message from Buhari's administration is that it will retain many of its predecessor's policies.
The road map inherited by this government seeks to increase output to 1 million tonnes by 2018 in a bid to catch up with the 1.8 million tonnes of top producer Ivory Coast.
The agriculture ministry also wants to plant 2 million cocoa trees within three years, but no details have been given to show how this would be achieved.
"We're looking forward to quick intervention, quick action on the part of government even if it is by policy statements but we have not seen that yet so well, one welcomes such statements but as we have seen over the years, government talks but it does not walk the talk," said cocoa consultant Robo Adhuse, who works with farmers and non-governmental organisations.
Buhari has unveiled a record 30 billion U.S dollar budget for 2016 to invest in infrastructure to diversify the economy, but the bill setting this out has been delayed by parliamentary wrangling.
Adding further woes, a policy retained from the previous administration in which farmers could receive central bank loans at a rate of 9 percent, instead of borrowing from commercial banks at about 18 percent, has proved difficult to implement.
Buhari has urged banks to increase lending to the agriculture sector and in March said the central bank should bear part of the risk of such loans. But the central bank governor has complained that banks have largely failed to follow this guidance.
Nonetheless, Nigeria's cocoa output is set to rise to 350,000 tonnes in the 2015/16 season, as farmers are reinvesting last season's larger profits in fertilizer and pesticides.
Aside from a brief drop in January, global cocoa prices have risen for two years, buoyed by growing demand for cocoa products and chocolate, particularly in China and India, plus fears that the El Nino weather pattern could affect beans.
Fifty six-year-old, Ebeneezer Akinmade whose five farms located just a 20 minute drive from the Cocoa Products plant span 12 hectares, typifies gains made by farmers in the last few months.
"Last year the price of cocoa was 270,000 to 300,000 naira (1,356 to 1,507 U.S dollars) last year, but this year, it is 800,000 naira (4,020 U.S. dollars) per tonne, which I know... that is of great benefit to me," he said.
High poverty levels among the 180 million Nigerians have prompted authorities to see the labour-intensive cocoa industry as a way to create jobs, but Olusuyi at Cocoa Products has been firing workers to stay afloat.

Pictures courtesy: Akintunde Akinleye (Reuters)

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The cost of Nigeria's population boom

Nigeria is planning a record budget to help Africa's biggest economy to weather low oil prices and diversify the economy, but experts warn that exploding population growth will overwhelm any new infrastructure just as soon as it is built.
President Muhammadu Buhari plans a record $30 billion budget for this year to build roads, railway lines and improve erratic power supply in Africa's most populous nation.
The former military ruler got elected last year on a promise to drag millions of Nigerians out of poverty and stop state income from enriching a hyper-rich elite.
Buhari plans to spend $9 billion on capital expenditures, three times more than in 2015. But with the population growing annually by 3.2 percent -- the highest rate in Africa -- any plans for new roads gets immediately outdated.
That can be seen in the mega-city Lagos, home to 23 million, which adds every day several thousands of residents, babies or people from other parts of the vast country seeking work.
Most newcomers end up in slum like districts on the mainland, where makeshift houses stretch for kilometers on narrow dirt tracks.
Public transport, schools and hospitals are unable to serve all residents, a picture similar in most cities.
In Lagos alone authorities needed to spend $50 billion in the next five years on infrastructure, said Ashade Jeremiah, state commissioner for budget and planning.
"Our budget I think this year is roughly about over three billion dollars, so you can see that we need more collaboration. We need to really explore more the public private partnership. We also need to increase our revenue base, bring more people to the tax net so we can even have more funds, but more importantly is that aspect of the public private partnership that we are really looking towards exploring and ensuring that we get more investment in those directions," said Jeremiah.
The population will hit 300 million by 2030. According to the United Nations, the West African nation will be the third most populous nation hosting 400 million people.
To cope, Nigeria would need to double the number of schools, hospitals or roads, according to the U.N. Population Fund.
That is an illusion given dwindling oil revenues, which make up 70 percent of state income. Transport, for example, Buhari's budget will only fund three rail lines, four airports and 31 roads, some of which have been in the works for years.
Analysts say Nigeria's economy would need to grow at double-digit rates for years to provide jobs.
For 2015, the International Monetary Fund expects the economy to slow to 2.3 percent after 2.8 percent last year.
Osaretin Adonri, an assistant representative of the United Nations Population Fund in Nigeria says the unemployed are an easy prey for Boko Haram which has been recruiting disgruntled youth for its insurgency to set up an Islamic state in the north.
"We have a pool of young persons that are probably not very educated, and those who are educated do not have jobs to do, and so they become a ready army for the kind of insurgencies and disturbances we are seeing in parts of the country."
The population growth's repercussions go beyond Nigeria -- as many poor head for Europe by travelling overland to Libya from where smugglers ship them to Italy.
The European Union saw the number of Nigerian asylum seekers tripling last year. Most say they flee Boko Haram but officials say many are economic migrants.
Population growth is a "buzz word" in research notes of global banks describing Nigeria's potential as a huge market for anything from fizzy drinks, TV sets to cars.
But for most Nigerians, life is just about surviving -- 70 percent of the people live on 1 dollar a day or less, Adonri said.
The economic crisis is now also luring job seekers fleeing northern and central Nigeria, where state governments have been unable to pay salaries.
Further pressure from Boko Haram is driving people to the south despite some successes by the army in retaking land.
Many displaced people head to Lagos to find work after having stayed for years in camps.
While complaining about suffering, many here still want to have a big family.

Pictures courtesy: Akintunde Akinleye (Reuters)
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Nigerian artist aims to popularise hyperrealism art in the country

The first time I came across the story on Olumide Oresegun's amazing hyperrealism artworks was on Nairaland. I saw the headline and thought to myself: "Hmmmm, another artist....we've done so many stories on artists. I didn't click the link to read the story. The second time was when my colleague offered the story. I became eager to view photographs of his artworks. Nothing short of amazing!!
Olumide Oresegun's reality inspired art has captured the hearts of many across Nigeria leading to Nigerians becoming aware of such a style of art work. His paintings reflect what is considered an advancement of photographed realities; an art style that is rarely used in paintings or sculptures. When Olumide's art works hit the internet some weeks ago, the social media world in Nigeria was abuzz with many Nigerians expressing how amazed they were with his works. The 35 year old works in a small workshop from his home using locally sourced materials. Depending on the size of the painting, it could take between one to three months to complete an art work. At 14 years of age, Olumide was already drawing. He ventured into painting professionally at age 24. His passion for hyperrealsim art drove him to learn and develop the skill. His paintings address various themes ranging from celebrating womanhood to highlighting the innocence of children. While studying Fine Arts at Yaba College of Technology, Olumide started selling his paintings to clients both within and outside Nigeria. Some of his paintings costs as high as 500,000 naira (2,512 U.S. dollars). Commissioned works are sold at a higher cost. With over 100 commissioned works, Olumide is looking to create more awareness for hyperrealism art. The hyperrealism artist has held two solo exhibitions in 2011 and 2014. Olumide says he wants to make an impact in the art scene in Nigeria and hopes that many others will be inspired to become hyperrealism artists.

Pictures courtesy: Seun Sanni