1. ENHANCING GINGER VALUE CHAIN PRODUCTION AND EXPORTS – ROLE OF NEXIM BEING A PRESENTATION BY ABBA BELLO MD/CE, NIGERIAN EXPORT – IMPORT BANK AT THE GINGER BUSINESS DEVELOPMENT & INVESTMENT SUMMIT ORGANISED BY TAK INTEGRATED AGRICULTURAL SOLUTIONS LTD Kaduna,25th July, 2017

2. OUTLINE
Overview of Ginger Production in Nigeria
Ginger Production – Challenges & Prospects
Investment and Export Potentials
The Role of NEXIM
Concluding Remarks

3. 1.0 Overview of Ginger Production in Nigeria
Nigeria is one of the top three producers of Ginger globally with 5-year average production output of over 300,000 tonnes per annum as per 2014 FAO Statistical data.
According to information gleaned from Nigeria ranked first in terms of percentage of total hectares under ginger cultivation, but with a yield estimated at 4.91 tonnes per hectare
Ginger production in Nigeria is predominantly in Kaduna, Benue, Nassarawa and Plateau States, with Kaduna being the highest producer
On contribution to global exports, Nigeria’s contribution is 1.55% and 2.72% based on 5-year average on volume and value of exports respectively

4. 1.0 Overview of Ginger Production in Nigeria … Cont’d
Schematically presented below are summaries of the contribution of the Top 6 global producers based on 5- year average as per FAO 2014 Statistical Data

5. 1.0 Overview of Ginger Production in Nigeria … Cont’d

6. 2.0 Ginger Production – Challenges & Prospects … Cont’d
Issues / Challenges
Summarized below are some of the issues being identified and adjudged to be impacting on impacting productivity in the ginger value chain and boosting production;
Low yield per hectare
Access to finance – largely due to the dominance of small scale production and weak value chain systems
Post Harvest Losses and issues of quality standards / specifications
Unstructured Marketing Arrangements
Low Level of Value Addition

7. 2.0 Ginger Production – Challenges & Prospects…Cont’d
Despite the highlighted production and productivity issues, there are good prospects and high potentials for Nigeria to have greater percentage share in global volume of ginger production, level of value addition and contribution to export earnings.
The prospects for higher production volumes and value addition provide good incentives for investments and transactional partnerships in the ginger value chain, especially against the backdrop that;
Ginger is highly valued in terms of unit price.
Large hectarage for primary production are available to ensure sustainability with opportunities to invest in better farming practices and provision/supply of inputs and implements to improve yield / productivity
There exist untapped opportunities for investments and partnerships in the development of higher ginger value chain

8. 3.0 Investment and Export Potentials
The Ginger sector has good investments prospects in both primary production for higher yield and higher value chain in the pulverizing to powder and/or extraction in oil / oleoresin production for the various industrial applications in;
Food and Beverages
Confectionery
Pharmaceuticals / Cosmetics Industry
Nigerian Ginger is highly valued with higher comparative unit value than other countries based on its aroma, pungency and high oil and oleoresin contents

9. 4.0 The Role of NEXIM
The Nigerian Export – Import Bank was established by Act 38 of 1991 as an Export Development Finance Institution with a broad mandate that essentially is to promote the diversification of the Nigerian economy and facilitate non-oil exports through the provision of the following services, among others:
Credit Facilities in both local and foreign currencies
Risk Bearing Facilities –
Export Credit Guarantee
Export Credit Insurance
Investment Guarantee & Insurance
Export Business Advisory Services / Trade & Market Information

10. The Role of NEXIM ….. Cont’d
NEXIM’s funding for Ginger exports over the years is about N600 million, and its basically for trade finance transactions
The Bank’s low funding support of Ginger transactions in relation to other agricultural export crops is quite low at 1% of total agriculture-related funding.
The low level of funding is being currently addressed under the Bank’s new strategic partnership initiative to promote value added exports of crops with high competitive exports and employment generation potentials such as Ginger.
Source: lpi.worldbank.org

11. The Role of NEXIM…Cont’d
Based on the above low funding scenario to Ginger in the past, which could be correlated to the issues raised earlier, partnerships proposal is nonetheless being developed to attract investments into the Ginger value chain, especially in value added processing and the promotion of linkages toward engendering enhanced primary production.
In this regards, it is hoped that NEXIM under this strategic partnership framework would increase funding in the coming export season to about N2 billion under the CBN’s Rediscounting & Refinancing Facility and Export Stimulation Facility, besides other funding arrangements.

12. Concluding Remarks
Based on available hectarage cultivated in Nigeria, the country has immense potentials, if strategically harnessed, to ramp up production by improving yield per hectare from 4.91 tonnes per hectare to the levels of the top 6 producers, besides India, to between tonnes per hectare thereby;
Becoming one of the leading producers / exporters of Ginger in the medium to long-term (5-10 years) with deliberate policy framework, dynamic partnerships and structured funding intervention at all levels of the value chain.
Doubling / tripling current production level with enhanced value added exports in the medium term within 2-3 years

13. Our Contacts

14. THANK YOU FOR YOUR ATTENTION