News in brief: Canada’s interest in Ogun state agriculture could be two sided: reducing its import bill and revenue opportunities. Can the Nigerian production hub can handle both.
The news cycle for the past 20 hours or so has featured the story of Canadian Ambassador to Nigeria, Jamie Christoff, mentioning his country’s interest in Ogun state economy. Headlines especially feature ‘agriculture’ as that is guaranteed to pique the interest of any Nigerian with ears on the ground for economic news.
Why? Nigeria’s agricultural potential is still largely untapped. For one thing, only 6.5 million hectares (or 19.%) of the country’s arable land bears permanent crops. Also, a large quantity (about 40%) of farm produce eventually go to waste due to varying factors. Then, there is the lack of financing in the sector that makes it hard to maximise productivity.
So, what is Canada’s interest? It is not clear yet.
The news we’re considering here is the outcome of a customary visit to one of the country’s state governors. Christoff claims that he is representing Canada’s interest but sees opportunities for both parties.
Canada is a major importer of agricultural products and it imported $42.6 billion worth of products in 2022. Its main international trade partner is the United States, which makes sense given their proximity to one another. However, could the country be looking for a way to cut down its agriculture import bill? If so, Ogun state may be the answer.
Boasting of over 16,000 square kilometres of land (or 16 million hectares), the state’s governor, Dapo Abiodun, boasted that a large chunk of it is suitable for crop production. When it comes to processing, Ogun is a top choice because of the available land.
“All these make us the industrial capital of Nigeria as most companies have their financial headquarters in Lagos, while their major manufacturing factories are located in Ogun State. We host two biggest cement factories in Nigeria, probably in Africa.” Abiodun said in response to Christoff’s indication of interest.
Ogun is an agrarian society. According to this IITA article, the sector employs 70% of its labour force and its contributes 30% to its GDP. The World Bank sees its potential and so does foreign companies and local investors.
The governor added that his administration remains dedicated to improving road network to add to infrastructure that investors need to establish more projects. In addition, its proximity to major sea and air ports is another advantage to international investors.
However, it is important to remember that Canada and the Nigerian government have a bilateral trade agreement that is over 60 years old. Yet, both countries are neither’s top international trade partner. China, Belgium, India, The Netherlands, and the United States of America are still Nigeria’s top five partners.
If that is to change, there is nothing stopping it from starting in Ogun state. The Canadian ambassador did mention that his country’s interest in the state extends to clean technology and infrastructure development too.
