Air Cargo Terminal to boost Farm Exports in Nigeria

By Kobe Eru Godwin

Despite its decline from the 1970’s, agriculture remains the mainstay of the Nigerian economy. The sector is the largest contributor to the Nigerian economy, accounting for over 38% of the non-oil foreign exchange earnings, and employing about 70% of the active labour force of the population .A larger ratio of Nigeria’s population depends on the agricultural sector for their livelihood and the rural economy is still mainly agricultural. The role of the agricultural sector is very vital to the Nigerian economy in terms of reform and adjustment of policies. Agricultural production is very important to the economy of developing nations as a whole and Nigeria in particular. The agricultural products of Nigeria can be divided into two main groups: food crops produced for home consumption, and export products. Transport is regarded as a fundamental aspect in improving agricultural productivity. It enhances the quality of life of the people, creates market for agricultural produce, facilitates interaction among geographical and economic regions and opens up new areas to economic focus. Transportation is essential when it comes to agricultural services. It is a phase in the production and supply process which ensures that the commodity gets into the hands of the final consumers (chain of supply). The economic benefits of large-scale agriculture are recognized, and the government favors the formation of cooperative societies and settlements to encourage industrial agriculture (including manufactured food and agricultural products). In line with enhancing transportation in the Agricultural sector, the Nigerian Government, in conjunction with the aviation sector, is building Cargo terminals at 12 Airports to help enhance the export of farm produce (in general). The need for agricultural transportation will continue to increase, based on expected growth in the demand for agricultural products domestically and overseas. Reconstruction of some segments in our Airports is already in progress. The rationale behind this innovation is to provide channels for exporting perishable and nonperishable agricultural output. The implementation of such a medium will increase the income of domestic farmers, save time, reduce waste/ glut thereby creating a better standard of living. The General Manager, Corporate Communications of the Federal Airports Authority of Nigeria, FAAN, Mr Yakubu Dati, said that the Lagos branch is working with farmers’ groups and airlines to identify and serve foreign markets. He commented on the current situation where cargo planes fly out of the country empty, and affirmed that, “FAAN has created a cargo department which underscores the importance it attaches to the project.” He also said that after building the terminals, private investors will provide refrigeration services, air transport and other facilities for export, helping to support agriculture, Products expected to benefit from this project include peanuts, tomatoes, lettuce, peppers, mangoes and carrots. According to the Ministry of Agriculture, Nigeria plans to increase food production by 20 million metric tons by the year 2015, by providing land, funding and infrastructure and saving the $10 billion spent on food imports every year. The Aviation Minister, Mrs. Stella Oduah, says that Nigeria would increase cargo throughput at its airports, now dominated by passenger traffic, as part of efforts to increase airport revenue threefold. Nigeria’s climate permits the cultivation of a variety of crops; the staples are root crops, including cassava, yams, taro (cocoyam), and sweet potatoes. Tree crops include cacao, oil palm, and rubber. The shelf life of oil in Nigeria was estimated at not more than 45years, and is slowly crawling to a brink, Agriculture is the new phase of Nigeria’s economy, a major sector that will reduce the dependence on oil export, which is a source that accounts for a huge percentage of Governments revenue and export income. Other goals from the Aviation ministry apart from building cargo terminals are to reconstruct all the airports in the country and build five new international airport terminals this year, each meeting the International Civil Aviation organization standards, according to the aviation ministry and FAAN.