By Irene Ogbuefi

I marvel at the complete package that comes with a palm tree (Arecaceae). It is a typical example of a natural resource that every member of its body adds business value to. This economic tree provides raw materials (trunk) used for construction and furniture. The leaves are used in making some household and fashion items such as baskets, umbrellas, and caps. The fruit coat is the primary source of palm oil which serves both culinary and industrial purposes. Palm oil is a sort-after commodity internationally.

The seed of the palm fruit provides kernel oil used for domestic and industrial purposes. The seed serves as a snack to humans and is also of value in animal feeds. The palm kernel cake is a nutritional feed for dairy cattle. The palm kernel shell is a source of renewable energy and biomass fuel. The shell also provides composite materials to meet various technical and environmental needs. I further found it intriguing that at some point in history, Nigeria could boast of being the number one global producer and exporter of palm oil. That table has however turned in favor of countries like Malaysia and Indonesia. Even within Africa, Nigeria does not hold the number one position as the largest exporter of any products of the palm tree. The present-day palm tree harvests in Nigeria are sadly barely enough to meet domestic and industrial demands. The value this natural resource offers both in-country and globally (exports) calls for an awakening to improve its agricultural yield.

What did countries that gained a competitive advantage over us in the global market do differently?These countries embraced intentional efforts at investing in infrastructure, technology, and environmentally friendly solutions. Striking a good balance between land allocation for agricultural purposes and urbanization helps preserve eco-districts needed to guarantee sustainability. Research to identify high-yield varieties and marketing diversification opportunities (e.g. emerging markets) also set the better competitors apart. The government’s role in championing this course cannot be overemphasized. Policies that support the agricultural sector, research grants in agriculture, and efficient supply chains are some examples of catalysts for optimal production and an increase inexports. When the yield is high, economies of scale become an added advantage.

The palm tree example serves as a point of reference for every non-oil product that can help diversify Nigeria’s economy. There is a trade imbalance in how much we export and how much we import and the pivot weighs heavily on imports. More exports of agricultural products (palm oil, cashew nuts, rubber, cocoa) demand strengthening the agricultural sector. Other areas of international appeal that can make a difference are Nigerian fabrics, textiles, minerals, etc. Strategy is key in settling for the best approach to diversify our export base. A combination of technology, sustainable practices, infrastructure, research, and supportive policies are all enablers.

Small and Medium Enterprises have a significant role to play in economic diversification. It will be in the country’s benefit for the government to create enabling environments for them to operate. This can be done through the provision of incentives, access to finance, capacity building as well as financial literacy programs. Benefits include job opportunities for our teeming unemployed population, economic growth, and less reliance on oil revenue. If the natural resource of crude oil were human, I can only imagine how much pressure it would be operating under.

Ogbuefi, a pharmacist and supply chain expert, writes from Abuja