Fungal disease outbreak inflicts N12bn losses on Nigerian ginger industry

• Threatens status as world’s second-largest producer

Onome Amuge

Nigeria stands at a critical juncture in its ginger production history, with the crippling loss of N12 billion due to a severe fungal disease putting its coveted position as the second-largest ginger producer in the global market at risk. The outbreak has hit hard in several key ginger-producing regions, including Kaduna, Bauchi, Benue, Gombe, and Nasarawa, decimating crops and leaving farmers in dire financial straits.

Sunday Marshall Katung, representing Kaduna-South, a region renowned for its robust ginger production, voiced his grave worries regarding the imminent collapse of the nation’s ginger industry should farmers remain uncompensated for the financial havoc wreaked by the recent fungal disease epidemic. Katung’s concerns are rooted in a fear that the loss of N12 billion will prove insurmountable for farmers, leading to a significant decline in ginger production across the country.

 Katung’s revelation came hot on the heels of an announcement by Aliyu Abdullahi, the minister of state for agriculture and food security earlier confirming the ginger blight epidemic sweeping through key regions of the country, including Kaduna, Nasarawa, Plateau, and the Federal Capital Territory. The minister’s statement put a figure to the extensive losses incurred by farmers, revealing that southern Kaduna alone suffered over N12 billion worth of damage, setting off alarm bells regarding the future of ginger production in Nigeria.

Katung, the voice of Southern Kaduna’s senatorial zone, conveyed his deep concerns about the fate of ginger farmers at a one-day workshop organized by the Senate Committee on Capital Market and the Lagos Commodities and Future Exchange (LCFE) in Abuja. Katung painted a bleak picture of farmers forsaking their livelihoods in the forthcoming rainy season if adequate compensation for their losses during the ginger blight epidemic is not forthcoming.

The senator highlighted the colossal setbacks inflicted on ginger farmers by the devastating fungal disease outbreak during the previous farming season. Katung  implored the government to intervene to safeguard Nigeria’s global status as the second-largest ginger producer, cautioning that the economic ramifications of inaction would be immense.

“You have to compensate them as a way of encouraging them (farmers) to go back to farming. If that is not done, farmers would no longer be interested in farming, and we will lose our position in the world as a country,” Katung stated.

The perilous state of Nigeria’s ginger industry was also highlighted by the AFEX Commodities Exchange’s data, which showed a significant decline in ginger production. In 2023, the country’s output tumbled from the previous year’s robust yield of over 800,000 tonnes to a paltry sub-100,000 tonnes, reflecting the unprecedented impact of the fungal blight. Kaduna State, which accounted for about 80 per cent of the national supply, was hit the hardest, recording a devastating loss of N12 billion, a figure that underscores the severity of the crisis.

In a move to mitigate the effects of the devastating fungal disease on Nigeria’s ginger industry, the Nigerian government has pledged a substantial aid package of N1.6 billion to be disbursed to affected farmers in Kaduna, Nasarawa, Plateau, and the Federal Capital Territory. The funding aims to provide relief to smallholder farmers hit hard by the outbreak and to stimulate ginger production, thereby safeguarding the country’s position as a global ginger powerhouse.

The fight against the ravaging fungal disease has intensified with  the minister of state for agriculture and food security, taking decisive action to address the crisis. The minister, determined to turn the tide against the disease, officially launched a national committee tasked with spearheading the counter-offensive against the pathogen.

Minister Abdullahi conveyed the weight of the burden borne by Nigeria’s ginger farmers in the face of devastating fungal disease outbreaks, highlighting the acute need for immediate intervention to protect crops, particularly in Kaduna, where the economic fallout has been most severe. Abdullahi, fully cognisant of the staggering losses suffered by ginger farmers, stressed that the cost of inaction in Kaduna alone, with losses estimated to surpass N20 billion, could be devastating for the state’s economy.

Abdullahi, in his address during the  inauguration of the presidential committee on ginger crop transformation in Abuja, dwelled on the untapped potential of Nigeria’s ginger industry as a powerhouse for economic expansion. The minister highlighted the immense potential of ginger as a driver of growth, projecting that the crop could contribute $6.29 billion to Nigeria’s economy by 2030, far surpassing the $4.16 billion generated in 2023.

Abdullahi underscored the distinctive quality of Nigeria’s ginger, known globally for its exceptional flavour and potency. This reputation, coupled with the rising international demand for ginger’s health and culinary benefits, has propelled the crop to the forefront of the nation’s economic opportunities. Yet, in the face of the destructive pathogen, the future of Nigeria’s ginger industry hangs in the balance.

Nestled in Nigeria’s agricultural landscape, ginger stands out as a high-value export commodity, holding immense economic potential for the nation. Market experts, who extol the distinct quality of Nigerian ginger, have affirmed that the country’s ginger is highly sought-after in international markets, notably by the Arabs and Asians. Boasting a peerless level of flavor and spiciness that has earned it a global reputation, Nigeria’s ginger is widely regarded as one of the world’s finest, possessing the unique potential to drive substantial revenue and position Nigeria as a major player in the global ginger market.

Gagarin Madaki, president of the National Ginger Association of Nigeria (NGAN), proudly shone a spotlight on the vast range of benefits associated with Nigeria’s ginger. Madaki, highlighting the commodity’s multifaceted impact, underscored its prominent role in boosting the economy, being a key ingredient in brewing and food industries, and, perhaps most notably, its indispensable contribution to health, where it has been effectively used to combat infections, regulate blood sugar, and even reduce the risk of heart attacks.

The NGAN president, therefore, encouraged farmers to produce based on international best practices for improved benefits.

Adua Sunom, a ginger producer from Kachia Local Government, Kaduna State, provided an insight into the traditional methods of cultivation that many ginger farmers still employ in the region. In his conversation with Business a.m,the farmer explained the difficulties faced by both farmers and marketers, citing a general lack of business skills and know-how related to the export market. According to Sunom, these farmers are only familiar with the local markets where the demand for ginger is relatively small in comparison to global demand.

“Ginger production in the country is laborious as most operations  including planting, mulching, fertilising, weed control, harvesting, and processing, are done manually rather than with mechanised equipment.  Also, most of the farmers  do not know the actual value of the commodity in the global market and are often exploited by middlemen who serve as a link between the farmers and the market,” Sunom said. He added that the inadequate recognition and exploitation of ginger potentials by producers and marketers alike pose serious setbacks to dominance in the global market.

Sunom called for a concerted effort by government officials to create a conducive business environment that will entice investors and facilitate the growth of the industry. Furthermore, he urged financial institutions to support increased ginger production and marketing by providing investment platforms and funding options to producers and marketers, thereby stimulating the development of a sustainable ginger value chain in Nigeria.

Kenneth Obiajulu, the CEO of AgroCorp International Development Limited, accentuated the crucial need for investment in Nigeria’s ginger production value chain, urging stakeholders to rally together and capitalize on the country’s natural potential in this arena. Drawing on his expertise in the field, Obiajulu noted that the time has come for Nigeria to unlock its full potential as a global player in the ginger export market.

“When thinking of ginger, many people automatically think of India and China, the two powerhouses of ginger production and consumption globally, but what many do not know is that the second-largest producer of ginger is located right in the heart of Africa,” he said.

Drawing on his in-depth understanding of the market, Obiajulu highlighted the importance of adhering to international best practices in the entire production, processing, and packaging process to ensure Nigeria’s ginger competes at the global level. He also stressed the unique advantage that Nigeria holds as a country with year-round ginger production, offering a steady supply to satisfy both domestic and international demand.