In an effort to prevent product rejection, Nigerian exporters are using the country of origin and labelling of nearby West African nations such as Togo, Benin Republic, and Ghana when sending their products overseas due to concerns about frustration in European and other markets. They chose to reduce the financial losses caused by wrong perceptions and integrity concerns surrounding the country’s agricultural products. In a recent interview, shippers mentioned that Nigerian exporters continue to favour using the ports of several African countries over the federal government’s newly established Export Processing Terminal (EPT) to streamline the export process in the country’s seaports.
Most farm produce, particularly yams, passing through Ghana to Europe originates from the country. Nevertheless, when this produce is shipped through Nigerian ports, international customers frequently turn it down due to unfavourable labelling and perceptions of the nation’s exports. Nigerian exporters increasingly use labels from other African countries for their products, highlighting this trend’s importance. Reports have verified that products from the country, such as farm goods and food items, face rejection in other countries when labelled as the country product.
EU rejects 76% of shipped goods for lack of proper documentation.
According to sources, the European Union turns down about 76% of products from the country. Prof. Mojisola Adeyeye, Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), discussed the issue of the country exporters bypassing the agency at a forum on product rejection reasons. From her assessment, exporters are avoiding compliance with regulations, and any food items returned from overseas have not undergone inspection by the National Agency for Food and Drug Administration and Control or Nigeria Agricultural Quarantine Services (NAQS).
Adeyeye pointed out that many exporters bypass NAFDAC, opting for a quicker route that leads to a dead end, where their products are destroyed. Also, according to Bassey Udom, an experienced exporter, exporting produce presents many obstacles that the government must promptly tackle for a successful transition to a non-oil economy. The government’s creation of the EPT for export has not altered foreign buyers’ negative perception of Nigerian produce. Consequently, exporters are rerouting through neighbouring countries with better acceptance in Europe.
Bribes, delays, and other challenges prompt exporters to relocate.
Government agencies claim exporters bypass them for documentation, but this is only partially true. Export produce often encounters logistical issues, including delays caused by police and touts demanding bribes on highways. These hurdles impact timely shipping. An industry source revealed that exporters prioritise routes where their products are approved to prevent rejections and increase profits. He noted that the government needs to do considerable work to tackle these obstacles, along with European nations’ unfavourable branding and refusal of the nation’s exports.
During a media interview, Dr. Muda Yusuf, the CEO of Center for the Promotion of Private Enterprise (CPPE), stated the importance of the country establishing credibility with global purchasers and regulatory bodies to enhance the marketability of its agricultural goods. Due to quality issues with Nigerian food products, the exporters are turning to other countries like Ghana for origin labels. Concerns about the quality and Packaging of the country’s produce, particularly beans, have prompted this shift to meet international standards. Dr. Yusuf emphasised that the issue with products like yams stems not from their physical quality but rather from their packaging and documentation.
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This negative perception of Nigerian goods has resulted in unfair scrutiny and bias, placing them at a disadvantage compared to exports from other nations. He emphasised the need for enhanced packaging, compliance with global standards, and simplifying export procedures to tackle these obstacles. He also highlighted the complexities of transporting perishable items from farms to ports, emphasising how delays in the process could jeopardise product quality. He believed that streamlining these procedures could increase trust among international purchasers and lessen the inconvenience for the local exporters, eliminating the necessity to divert goods through Ghana.