Nigeria, a nation known for its hardworking and ambitious people, might be perceived as a rich country by outsiders. However, when we delve deeper, the reality doesn’t align with this perception. According to the Global Competitiveness Index 4.0 2019 Rankings, Nigeria ranks a mere 116th out of 140 countries and is 15th among African nations. This ranking highlights Nigeria’s level of productivity, an aspect that demands urgent attention for the nation’s sustainable growth.
Productivity is a crucial measure of how efficiently a country combines capital and labor to produce more with the same level of inputs. Labor productivity, measured by output per person employed or output per person hour, is a common focus. However, a more comprehensive measure of productivity growth is the total factor productivity, which considers changes in both capital utilisation and the size of the labor force.
The importance of productivity lies in its direct impact on living standards. It quantifies how effectively an economy utilizes its available resources by relating input quantities to output. As the adage goes, productivity isn’t everything, but in the long run, it’s almost everything. Low productivity can result in stagnant economic growth, which poses a significant challenge for Nigeria.
Conversely, higher productivity can lead to various benefits. It can result in lower unit costs, which may be passed on to consumers in the form of lower prices, stimulating higher demand and increased output. Additionally, improved productivity enhances competitiveness and trade performance, making firms more competitive in global markets.
Another benefit of higher productivity is higher profits for businesses. Efficiency gains lead to increased profitability, which can be reinvested to support long-term business growth. Higher productivity also enables businesses to afford higher wages for their more efficient workers. Furthermore, an economy with improved productivity can experience a higher trend growth in national output.
Productivity improvements can also result in the reallocation of labor from one industry to another. For example, greater efficiency in farming can increase production yields, providing more food for export or to meet the needs of a growing urban population.
Enhancing national productivity requires deliberate policy efforts by the government. Effective productivity improvement largely depends on the integration and coordination of various social forces, including government institutions, employers, workers’ representatives (such as trade unions), and non-governmental organizations. These forces play a major role in promoting productivity through direct intervention, coordination, professional education and training, and raising public awareness of productivity consciousness.
The role of the government in boosting productivity is crucial. Governments must provide the necessary infrastructure and create opportunities for growth. Infrastructure includes education and training, health services, housing, power supply, water resources, transportation, communications, research and development, and technological advancements. For example, substantial government investment in research and development has facilitated growth in agriculture, highways, airports, water, and railway systems in many countries, thereby supporting productivity increases in various industries.
Nigeria’s focus on productivity is a critical determinant of its economic growth and development. The nation must prioritise strategies to enhance productivity, such as investing in education and training, improving infrastructure, and fostering an environment that encourages innovation and efficiency. By harnessing the potential of its hardworking and ambitious population and implementing effective policies, Nigeria can pave the way for sustained economic growth and improved living standards for its citizens.
Cashew nut production in Nigeria is concentrated in several states, with the major producing regions located in the southern part of the country. States like Ogun, Kogi, Benue, Enugu, Anambra, and Kwara are among the leading cashew-producing states. These regions provide favourable agro-climatic conditions for cashew cultivation, including well-distributed rainfall and suitable temperatures.
Cashew nuts are one of Nigeria’s major non-oil export commodities. The country exports a significant portion of its cashew production to international markets, including the United States, Vietnam, India, and Europe. The export revenue from cashew nuts contributes to Nigeria’s foreign exchange earnings and helps support the national economy.
The cashew nut industry plays a vital role in providing employment and livelihood opportunities for millions of Nigerians. From farm cultivation to processing and distribution, the cashew value chain employs a considerable number of people in both rural and urban areas. Smallholder farmers make up a significant portion of the cashew nut producers, contributing to poverty reduction and rural development.
Despite its potential, cashew nut production in Nigeria faces several challenges that hinder its full growth and competitiveness in the global market. Some of the key challenges include:
Poor Processing Infrastructure: Nigeria lacks modern and efficient processing facilities for cashew nuts. The limited availability of processing plants hampers value addition and results in significant post-harvest losses.
Quality Control: Maintaining consistent quality standards is essential for accessing high-value export markets. Inadequate quality control measures at various stages of the value chain can affect the reputation and competitiveness of Nigerian cashew nuts.
Pests and Diseases: Cashew plantations are susceptible to pests and diseases, which can reduce yields and impact overall production. Adequate pest management strategies and disease control measures are necessary to safeguard the crops.
Access to Finance: Many smallholder farmers and cashew processors struggle to access affordable finance and credit, limiting their ability to invest in modern farming techniques and processing technologies.
Despite the challenges, there are several opportunities for the growth and development of the cashew nut industry in Nigeria:
Investment In Processing: Increasing investment in modern processing facilities will add value to cashew nuts, create employment, and reduce post-harvest losses.
Research And Development: Investing in research and development to improve cashew varieties, increase yields, and enhance disease resistance will strengthen the sector’s competitiveness.
Export Diversification: Exploring new markets and diversifying cashew exports can reduce reliance on a few key destinations and mitigate the impact of fluctuations in global demand.
Capacity Building: Training and capacity building for farmers and stakeholders along the value chain can enhance productivity, quality, and efficiency.
Cashew nut production in Nigeria is a vital component of the country’s agricultural sector and economy. With its potential for job creation, export earnings, and poverty reduction, there is a need for strategic interventions, including investment in processing infrastructure, research and development, and capacity building. Addressing the challenges and seizing the opportunities will be critical for Nigeria to strengthen its position in the global cashew nut market and harness the full potential of this valuable commodity
