Although Nigeria is Africa’s second-largest soybean producer, five vessels offloaded 48,566 tonnes of soybean oil worth 54.2 billion naira ($77.4 million) at the Lagos port complex, in Apapa, in three months.
The price of oil is $1,598.78 a ton on the world market as Argentina, the world’s largest exporter of processed soybean oil and meal, raised tariffs by 33% due to the Russian invasion of Ukraine and the drought. Soybean oil has become the main ingredient in the production of chicken feed, soymilk, soybean meal, soy yogurt, flours, local paint, cosmetics and soap across the country .
Findings from the Nigerian Ports Authority (NPA) shipping position revealed that Fairchem Sword arrived on Thursday to offload 12,000 tonnes at the Apapa Bulk Terminal Limited (ABTL), Port of Lagos. Additionally, between June and August 2022, NPA data explained that PS Dream released 13,200 tons; Unisun, 6,910 tons; HC Opal, 7,856 tons and Coe Laura, 8,600 tons.
Nigeria’s annual soybean production is estimated at 1.25 million tonnes valued at 475.4 billion naira ($679.18 million), while South Africa produces two million tonnes annually. Currently, soybean oil is a major complement to palm oil in the domestic edible vegetable oil supply equation in the country, leading to increased demand from infant food manufacturers, which use soy because of its high nutritional value.
Between 2018 and 2021, Nigeria imported 1.6 million tonnes of soybean meal worth 532 billion naira ($760 million). In January 2021, NPA data revealed that a total of 6,000 tons of soybean meal had been transported by MV Joy to the port complex in Lagos.
In addition, findings from a global trade portal, Index Mundi, also revealed that the country imported 320,000 tons of soybean meal in 2018, 2019 368,000 tons, 2019; 368,000 tons, 2020 and 375,000 tons, 2021.
In 2020, the country produced 1.1 million tonnes and 2021, 1.2 million tonnes, making the country the second largest producer in sub-Saharan Africa, with Benue State producing about 44% of national production, while Kaduna State produced 26.7%. Recall that in 2017, the country received 47,476 metric tons via the Lagos port complex in Apapa.
During the period, the MV Noro Shanghai and the MV Marina L. docked with 30,476 metric tons and 17,000 metric tons of soybeans respectively. Additionally, it imported 275,000 tons in 2015; 121,000 tons, 2014 and 100,000 tons, 2013 to support local demand as SALMA Oil Mills in Kano, Grand Cereals in Jos, ECWA Feeds in Jos, AFCOT Oil Seed Processors depend on beans for their production.
Meanwhile, Olam Nigeria has partnered with the International Institute of Tropical Agriculture (IITA) to promote various commercial varieties of soybeans suited to Nigeria’s different agro-climatic conditions.
In addition, the West Africa Trade and Investment Hub (Trade Hub) funded by the United States Agency for International Development (USAID) has launched a co-investment partnership with IITA through through its business incubation platform (IITA BIP) to boost the soybean value chain in Nigeria.