Sesame seed export boom powers Nigeria to N247.75bn revenue in Q1’24

Onome Amuge

Sesame seed, a resilient crop also known as Benni-seed, has emerged as a prime driver in Nigeria’s pursuit of economic diversification through agriculture. This is as the  oilseed posted N247.75 billion in export earnings during the first quarter of the year to cement its position as a key player in the nation’s push for economic revitalisation.

Recent data from the National Bureau of Statistics (NBS), showed that sesame seed exports surged 123 percent year-over-year in the first quarter of 2024, to emerge the country’s top agricultural export. According to the NBS foreign trade in goods statistics report, Nigeria’s sesame seed exports experienced a significant rise in the first quarter of 2024, generating N247.75 billion in revenue ,a 99 percent jump from the preceding quarter.

The remarkable success of the oilseed in the export market is even more impressive when compared to its performance throughout 2023, where the total value of sesame seed exports for the entire year was N253.7 billion, just two percent higher than its Q1 2024 value.

The NBS report attributed Nigeria’s increase in sesame seed exports in the first quarter of 2024 to a sharp uptick in demand for the oilseed in key markets across Asia, China, Europe, and Japan.

Nigeria’s sesame seed exports have found fertile ground in the lucrative markets of China, Japan, and Turkey, according to the Nigerian Export Commodity Council, with these countries representing the lifeblood of the country’s sesame seed trade.

Nigeria’s sesame seed exports, while modest in comparison to the country’s total export revenue of N19.17 trillion, contributed a notable 1.3 percent to the total export earnings, while the agricultural sector, of which sesame seeds represent a crucial cog,contributed 5.4 percent to the country’s total export revenue

Sesame is an annual flowering,drought tolerant crop which grows in pods, renowned for its edible and highly nutritional value and considered by agronomists as the oldest oilseed crop known to humanity.

The seed is notable for its diverse resourcefulness and essential derivatives depending on the processing method being utilised and the purpose. It is a highly utilised product in the industrial and pharmaceutical sectors and one of the basic ingredients in the production of biscuits, soaps,medicines, paints, lubricants, cosmetics,margarine and confectionery. Its oil extracts also consist of a wide range of applications that includes, hair treatment, cooking oil,disinfectant amongst others. The by-product processed from the seed also plays an important role in animal feed production.

Healthline Media, a reputable provider of health information highlighted over 15 health and nutrition benefits of the sesame seeds including; good source of fiber in reducing risks of heart diseases,obesity and type 2 diabetes;cholesterol and triglycerides control;nutritious source of plant protein;good source of vitamin B;blood sugar control, increase antioxidant activity in the blood;reduce joint and arthritic knee pain;aid hormone balance during menopause among other health beneficial uses.

Nigeria’s production capacity  

Against the backdrop of Nigeria’s arid climate, particularly in the northern region,  the resilient sesame seed has established itself as one of the most suitable crops for cultivation in  the country.The oilseed’s remarkable drought tolerance and adaptability have earned it a reputation as one of the country’s most suitable crops, with farmers in at least 26 states in the country cultivating the plant, while the northern states of Benue, Jigawa, Nasarawa, and Taraba are ranked the largest producers in the country. Other major producers include;Borno,Gombe,Kano,Katsina,Kogi,Plateau and Yobe States.

While the northern states remain the stronghold for sesame seed cultivation in Nigeria, the oilseed has proven its versatility by establishing a presence in the southern region of the country including Ebonyi, Cross River States and the Lanlate community in Ibarapa region of Oyo State.

In 2022, the United Nations Food and Agriculture Organisation (FAO) released a report that showcased Nigeria’s prowess in sesame production, ranking the nation as the world’s fourth largest producer of sesame seeds, trailing behind Tanzania, India, and Myanmar. The report revealed that Nigeria’s annual sesame seed production stood at 588,334 metric tonnes, marking the country as a big player  in the global sesame seed market. The FAO also  recognised Nigeria’s growing prominence as a major sesame exporter, trailing only behind India and Myanmar.

According to Sheriff Balogun, president of the National Sesame Seed Association of Nigeria, the nation’s sesame export sector generates a staggering $700 million annually, or $1400 per metric tonne of exported seeds. This lucrative trade has forged a lucrative economic bond between Nigeria and Japan, with the former’s sesame exports playing a significant role in the bilateral trade volume, which reached $1 billion in 2022.

Dalha Hamza, a sesame farmer in Roni, Jigawa State noted that the oilseed is playing a crucial role in Nigeria’s economic diversification efforts. As the country sets its sights on reducing its reliance on oil, Hamza and other sesame farmers across Nigeria find themselves at the forefront of a shift in the nation’s economic landscape, with their harvests representing a goldmine of opportunity for a country hungry for economic growth.

Asides  being in high demand in several countries of the world including; Australia,Brazil,China,France,Germany,Japan, Russia,Turkey and the Unites States of America, demand for organically grown sesame seeds has also recorded increases on a global scale with countries such as Germany and Japan offering huge consumption prospects.

Analysts posit that the massive economic  potentials of the sesame seed industry creates an opportunity for Nigerian sesame seed producers,marketers and other stakeholders in the value chain to focus on increased productivity,strengthen its market relevance as well as present higher opportunities for Nigeria to increase its production value in the global market while competition to meet soaring demand gets tougher among major producing countries.

Despite the immense potential of sesame seeds to lift Nigeria’s agricultural sector to new heights, the industry has been plagued by a lack of attention, lackluster policies, and insufficient infrastructural support, hampering the crop’s full economic potential.

Dwelling on this, Hamza, who has garnered over eight years of experience in sesame seed production  noted that the crop’s production has been hindered by poor transportation infrastructure to facilitate movement of the crop from production areas to market areas, multiple taxation imposed on producers and marketers,and insufficient sesame processing plants in the country,lack of access to credit facilities to enable farmers purchase production implements.  He further lamented that the crop is yet to receive any significant financial support from the government and financial institutions, which according to him, would encourage participation of more farmers and make access to credit facilities readily available.

Fakunle Aremu, an agricultural economist and research analyst, highlighted poor knowledge of export rules and procedures by some of the sesame value chain actors,  inadequate processing facilities and the low number of functional processing plants as challenges in the sesame seed production sector. Aremu further averred that these challenges have affected the quantity of seeds produced as many of the seeds are processed manually, resulting in negative implications on the pricing of the commodity especially at the international market where quality seeds are required to meet market value.

Positioning the sesame sector towards improved production/exportation

Industrial analysts opine that increased government participation and support in the sesame production industry as well as a more defined and active public-private partnership would help facilitate the production, processing, marketing, exportation and all other prominent operations beneficial to the expansion of the crop.

Speaking on behalf of other sesame farmers, Hamza called for the inclusion of sesame farmers in agricultural advancement and economic diversification projects. He further  called for easy access to certified and improved seed varieties and provision of farm implements and mechanised tools at subsidised rates to boost farming techniques.

On his part, Aremu recommended more defined public-private partnership on massive sesame production and processing with an organised market structure along the value chain, technical skills and capacity building in good agricultural practice, post-harvest management, quality standards, export management and other development activities applicable to each value chain. The agricultural economist also recommended further research and deployment of new and improved sesame farming techniques as well as modern agronomy practices to encourage improved crop yield and expand production.