AFEX: Nigeria’s commodities production bleak

In a recent interview on CNBC Africa, President of AFEX Nigeria, Akinyinka Akintunde, discussed the 2023 commodities outlook report, which paints a bleak picture for Nigeria's commodities production in the upcoming season. According to the report, production levels for key commodities such as maize, paddy rice, sorghum, and cocoa are expected to decline by an average of 11.5% in the 2022/23 season. Akintunde highlighted several factors driving this forecast, including macroeconomic policies affecting smallholder farmers' financing costs and climate-related challenges that impact agricultural output. One of the major concerns raised in the interview was the vulnerability of Nigeria's agricultural sector to external factors such as policy changes and climatic events. Akintunde emphasized the need for timely interventions to address these challenges and safeguard the country's food security. He pointed out that investments in research and development, particularly in climate-resistant seed varieties and infrastructure improvements, are essential to increase food production and mitigate the impact of climate change. Regarding the risks posed by climatic events like floods, Akintunde stressed the importance of proactive measures and infrastructure development to combat such occurrences. He suggested promoting dry season farming activities through dam utilization and irrigation systems to enhance food production during periods of climatic uncertainty. Despite the gloomy outlook for some commodities, Akintunde also highlighted potential bright spots in the market. He mentioned that there could be increased production for certain commodities driven by improved access to finance and key inputs for farmers. Additionally, he noted that the expected stabilization of fertilizer prices and policy initiatives aimed at enhancing storage facilities could positively impact production levels in the country. In conclusion, the AFEX report underscores the challenges facing Nigeria's commodities production in the upcoming season but also highlights opportunities for growth through targeted interventions and policy support. As the country navigates uncertainties in the global market and climatic risks, strategic investments and coordinated efforts will be crucial in ensuring a sustainable and resilient agricultural sector.