Market Prospects for Groundnut in West Africa COMMON FUND ...

to reciprocate the efforts of members states by developing
sufficient high quality disease and drought resistant seeds for
distribution to member states”. (quoted in Musa 2002).
These strong statements are reflective of a renewed commitment on the
part of the Government of Nigeria to revive the Nigerian groundnut sector.
ICRISAT reports that the state of Kano has recently imported “large
quantities” of the improved variety 55-543 to improve access to seed for
producers (Ntare 2002). These indications are indeed promising for the
groundnut producers of Nigeria, and the groundnut sector in general.
Groundnut prices and markets
Government statistics show no export of groundnut from 1998-2002, and no
export of groundnut oil since that year (NESG 2003). By the mid-1980s
significant quantities were being imported from Gambia to keep the oil mills
running. However, regional trade is known to be very extensive.
Unfortunately, accurate trade figures are not available, and thus this critical
regional market is very difficult to document and quantify.
Despite the official figures, which seem to indicate that Nigerian official
exports have dropped to nothing, sub-regional trade is thriving, particularly
between Nigeria and Niger, with trade flows extending in both directions.
Some groundnuts may cross the border several times before they are
processed, as supply and demand fluctuate against a highly fluid official
exchange rate between the Naira (NGN) and CFA Franc (fCFA), to be
discussed in further detail below.
Market prices vary significantly between markets, as indicated by price
data obtained by the IFDC-DAIMINA Field Survey, and by SIMA of the
Niger Ministry of Agriculture (Table 6).
Table 6. Groundnut product prices, August 2003.
State
Product Kano Bauchi Oyo
In Naira (NGN)
Groundnut in-shell per kg 100 95 130
Shelled groundnut per kg 80 100 80
Groundnut oil per l (0.9 kg) 195 160 150
Exchange Rate: US$1 = NGN 128
Source: IFDC-DAIMINA Field Survey.
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