Export lessons from Anambra
At a time the export of Nigerian foodstuff like beans has been difficult for substandard practices, it is gratifying that Anambra State has in just four months exported two kinds of vegetables eight times to Europe. The vegetables are Vernonia, bitter leaf (ewuro) and, Telfairia occidentalis, pumpkin (ugu) which are abundant in the state. Encouraged by the massive response to the exports, it is understood that the state is about to start massive export of okro, especially the type with eight lobes which Indians and other Asians cherish so much.
The exports are happily coming at a time the Nigerian government is genuinely leading the effort to diversify the country’s revenue base from petroleum which has, in over one year, been suffering glut in the world market, with all the attendant problems like the collapse in price.
Economists have over the centuries been talking about comparative advantage of nations in international trade. A country like Nigeria with tremendous natural resources is expected to take advantage of plentiful crude oil to build petrochemical industries, for instance, and derive immense benefits from them.
It took a distinguished Harvard Business School professor, Michael Porter, to let the world realise that in this modern world which is highly competitive, what should matter is not so much comparative advantage as competitive advantage. It is not comparative advantage which placed nations and territories like Singapore, Hong Kong, Taiwan, Japan and South Korea that have absolutely no mineral resources at their present dizzy heights of development but competitive advantage. In contrast, countries like the Democratic Republic of Congo (DRC) have humungous deposits of precious mineral resources but unfortunately rank among nations with the worst human development index (HDI).
The present government in Anambra State led by Willy Obiano, an erstwhile investment banker, must be a great believer in the competitive advantage theory. Otherwise, it is difficult to explain the sudden brilliant performance of his state in exports when exports from other states are facing rejection in Europe and elsewhere. The competitive advantage theory compels individuals and nations to squeeze water out of stone, as we have seen in the instance of Southeast Asian nations. They know that the modern world in particular is driven by globalisation which, in turn, leads to what my eminent professor at Cambridge University, John Child, famously calls hyper-competition in his great book entitled Organisation: Contemporary Principles and Practice which was published in 2005.
Since competitive advantage leads to research, innovation, efficiency and development, it is not surprising to learn from the Anambra State Investment Promotion and Protection Agency (ANSIPPA) that the state now produces in large quantities the best species of bitter leaf in the world. Discovered in Idemmili South Local Council Area – which, by the way, is the home of my Igbo in-laws – the government has been encouraging farmers to cultivate it all over the state with an eye on the export market, so that they can earn foreign exchange for themselves.
Needless to state, when Nigerian vegetables are exported, it is not only non-Africans that are targeted. There are huge Nigerian communities abroad. There are about two million Nigerians in the United Kingdom alone. Yet, there are far more Nigerians in the United States of America than in the UK. Nigerians in the Diaspora cherish home foodstuff. It is, therefore, regrettable that the home foodstuff like yam and garri consumed by Nigerians abroad are supplied mostly from Ghana.
This has been the situation because of the inability of Nigerian exporters to comply with the import requirements of regulatory agencies in Europe and elsewhere. The most reported of these failures in recent years has been the return of five containers of beans from Ireland in the middle of 2015 for containing between .03milligramme per kilogramme and 4.6mg/kg of dichlorvos pesticide whereas the acceptable maximum is .01mg/kg. The European Food Safety Authority banned the importation of Nigerian beans and some other agriculture produce, though the embargo is scheduled to be lifted in June following a successful inspection in March, 2006, of facilities of the National Agency for Food and Drug Administration and Control (NAFDAC) by a team of European Safety Authority officials.
Anambra State deserves commendation for meeting the stringent rules for exports to the developed world. The commendation becomes more deserving when it is taken into consideration that it is more difficult to export vegetables than foodstuff like beans. Anambra State’s success is reminiscent of Kenya’s achievement in earning millions of dollars daily from exporting flowers to Europe. Flowers are highly perishable like vegetables. Therefore, great care is required to export them.
Healthy competition was the main driver of the rapid progress Nigeria witnessed in the First Republic. When the Great Zik of Africa built the African Continental Bank in the 1950s, Nigeria’s first indigenous bank, Western Nigeria under Chief Obafemi Awolowo’s leadership reacted by building National Bank of Nigeria, and Sir Ahmadu Bello responded by building Bank of the North. When Zik built Nigeria’s first indigenous university in 1960, Chief Samuel Akintola’s government reacted by establishing the University of Ife in 1962 and the Northern Region answered by establishing Ahmadu Bello University in Zaria in 1963. And when Eastern Nigeria started an eminently successful agric revolution through the establishment of Farm Settlements under Dr. Michael Okpara’s leadership with the technical cooperation of the Israeli government, the Western Region also began its own, also with Israeli assistance. The result was tremendous progress for the whole country.
Anambra has thrown a big challenge to all states with its robust exports to Europe.
• Dr. Erhabor is an investment banker in Lagos.