Nigeria earned a total of 80.47 billion as foreign exchange from exportation of sesames seeds in the first three quarters of the year 2020. This represents 30.38% of the total foreign exchange earned from exportation of agricultural goods during the period in consideration. MSMEsToday can reveal based on analysis from the foreign trade statistics released by National Bureau of Statistics (NBS).
Over the years, sesames seeds, which have been on the frontline of Nigeria agricultural goods took the leading position from superior quality raw cocoa beans in the Q3, 2020. The value of sesames seeds foreign exchange earnings fell by 67.8% from N49.1 billion in the Q1, 2020 to N15.8 billion in Q2, 2020 and drop further by 1.3% to N15.6 billion in the Q3, 2020 in the same direction with the total foreign exchange earnings from all the agricultural goods exported in the same period. The drop in sesames seeds foreign earnings was attributed to Covid-19 pandemic and insecurity in the country among other factors.
The country’s earnings from sesames seeds come mainly from five destinations, namely, Japan, China, Turkey, India and Vietnam. In the first three quarters of the year 2020, sesame seeds exported to Japan accounted for 31.46% of the sesames seeds earnings, which is equivalent to N25.31 billion. A total of N19.55 billion was generated from sesames seeds exported to China, followed by N14.49 billion received from Turkey. India and Vietnam were responsible for 14.36% and 11.37% of the total value of sesames seeds earnings during the period under review. Nigeria obtained tangible foreign exchange earnings in Q1, 2020 from all the destinations considered. However, sesames seeds earnings from all the destinations dropped drastically in the Q2, 2020 while in the Q3, 2020, only the foreign exchange earnings from Japan and China increased compared to Q2, 2020 earnings.
Findings show that sesames seeds are abundant in multiple local large markets mostly located in Northern Nigeria. The mere fact that it is rarely consumed or used in Nigeria, makes the sesames seeds export from the country potentially large since the world’s demand for sesames seeds keeps growing at a rate of over 4% yearly. This implies that over 95% of all sesames exporters export seeds produced in the country as either shelled or unshelled sesames seeds.
The country remains one of the largest producers of sesames seed; with ten states (North and Central Nigeria) involved in production make Nigeria the 7th largest producer of sesames seeds worldwide. Sustainable supply can therefore be guaranteed throughout the year. Sesames production is projected to growth with about 6% annually during coming years. The country also has the capacity to produce and harvest twice in a planting season. This relatively long producing season in combination with good storage and warehousing facilities makes sesames available for exports all year around.
With abundant local availability of Sesames Seeds in Nigeria and a great global demand for Sesames Seeds from Japan, China, Turkey, India, Vietnam, Netherlands, Germany, Greece, France, Poland, and much more places around the world, venturing into the Sesames Seeds export business by prospective and current Sesames Seeds exporters in Nigeria will continue to prove to be a rewarding business.