Written By: Prof. Anthony Eze

With the reported potential to generate over N1.2 trillion yearly, but hampered by lack of access to credit, and raw materials, it is commendable that the Central Bank of Nigeria (CBN) has intervened to boost local production of poultry in Nigeria.  The intervention will ostensibly stop the illegal importation of frozen poultry into Nigeria, estimated at one point two million metric tones.

According to CBN, the intervention has become necessary because the poultry sub-sector is the most commercialized of all Nigeria’s agricultural sub-sectors and should be protected from the influx of poultry products from Benin Republic.

There is no denying the important role poultry plays in the economy.  Statistics show that poultry contributes about 25 percent of agricultural Gross Domestic Product (GDP) with a net worth of about one point six trillion naira.  Therefore, there is a huge market for chicken production and supply in the country.  

Currently, it is estimated that 70 per cent of chicken consumed in the country is smuggled, while only 30 per cent is produced locally. Though the Nigeria Customs Service (NCS) recently destroyed billions of naira worth of poultry, the products still enter Nigerian markets through the nation’s porous land borders.

Nigeria has chicken population of about 165 million, with the capacity to produce approximately 650, 000 metric tones and 300, 000 metric tones of eggs and meat, respectively. Besides, demand for birds is put at over 200 million, while the demand for eggs and meat is over 790, 000 and 1.5 million metric tones respectively. Unfortunately, the huge demand gap is met by smuggling of over 1.2 million metric tones of poultry into Nigeria from Benin Republic alone.

Nigeria’s population is projected to hit 400 million by 2050.   About 280 million out of the figure are projected to live in the cities and this will significantly increase the demand for poultry products.  At present, the per capita consumption of chicken in the country is still very low at 2.5kilograms.   In Brazil and South Africa, the figure is at 40kg and 30kg, respectively.   While the per capita consumption of eggs in Nigeria is 60 eggs per annum, it is 250 to 300 in most advanced countries.

For the CBN’s intervention to achieve its objective, it must also address the current production costs, which are reportedly high due to lack of access to credit facility, as well as inadequate integrated and automated system. The apex bank is reported to be taking care of these challenges through its intervention instruments such as the Commercial Agriculture Credit Scheme and the Real Sector Support Facility, among others.

However, poultry farmers still complain that they are constrained by high interest rates.   They also add that most of government’s policies in the agricultural sector are not impacting positively on the poultry sector.  Many of the farmers say they have managed to remain in the business despite huge losses by augmenting with their personal funds.

CBN should address these constraints by making the supply of grains available to poultry farmers through its grain reserves.  The apex bank should equally ensure greater access to finance at a single-digit interest rate for the poultry operators to expand their business.  This can be done through the CBN’s Anchor Borrowers Scheme, which has worked in rice production. Government should also discourage the export of grains and create a special foreign exchange rate on inputs, as well as abolish multiple taxes.

To protect local poultry owners from undue competition, the NCS and other relevant agencies are enjoined to check smuggling. It doesn’t end in closing the borders. Reports indicate that smuggling still takes place, even after the closure. Nigeria is currently the highest egg producer in Africa and the third highest in broiler production. But one of the benefits of this huge market, which is the capacity to create employment, has been hampered by smuggling of poultry products. The apex bank should revive the poultry sector and end the importation of frozen poultry into the country.

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