Nigeria agro export competitiveness challenges persist as expert cites high borrowing costs, weak infrastructure and post-harvest losses

An agricultural expert and national president of the National Cashew Association of Nigeria (NCAN), Ademola Adesokan, on Monday, 4 May 2026, warned that Nigeria’s agricultural export sector remains severely constrained by high borrowing costs, weak infrastructure, and post-harvest inefficiencies.

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Nigeria struggles with agro-export competitiveness issues were highlighted during an interview with LEADERSHIP, where Adesokan argued that despite strong production potential, structural bottlenecks continue to limit the country’s ability to compete globally.

He said Nigerian agro-exporters operate at a disadvantage compared to competitors in countries such as Côte d’Ivoire, Vietnam, and India, where financing is cheaper and export systems are more efficient.

Adesokan noted that while Nigeria produces key commodities such as cashew, cocoa, sesame, soya, and groundnut, most farmers still operate at subsistence level, preventing the scale required for competitive export pricing.

He identified high interest rates as a major barrier, explaining that Nigerian exporters often borrow at double-digit rates, while competitors access credit at between three and four per cent.

According to him, this financing gap significantly reduces profit margins and weakens Nigeria’s position in global commodity markets.

He also raised concerns over poor post-harvest handling and port inefficiencies, which he said contribute to quality degradation and frequent rejection of Nigerian exports abroad.

Adesokan added that inadequate storage facilities and delays at ports continue to damage Nigeria’s reputation as a reliable agricultural export origin.

Despite these challenges, he expressed optimism about ongoing reforms under the Nigeria Industrial Policy 2025, which he said aim to strengthen commodity value chains and improve export standards.

He noted that improved coordination, better infrastructure, and enhanced traceability systems could help reposition Nigeria’s agricultural exports for global competitiveness.

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Adesokan stressed that Nigeria’s problem is not production capacity but structural inefficiency within the supply chain, urging urgent reforms to unlock the sector’s full potential.