RMRDC, BOI To Boost Nigeria’s Onion Value Chain Development

The Raw Materials Research and Development Council (RMRDC) and the Bank of Industry (BOI) have initiated discussions to halt post-harvest losses and enhance value addition in the onion value chain.

Post-harvest losses, inefficient market access, and a lack of processing infrastructure have long plagued the onion industry in Nigeria. In a strategic move to revolutionize the industry, the director general of RMRDC, Prof. Nnayelugo M. Ike-Muonso, recently led a team on a courtesy visit to the managing director/CEO of BOI, Dr. Olasupo Olusi, in Lagos to explore collaborative opportunities focused on onion processing and export.

The meeting emphasised the need for partnership to establish a facility to process surplus fresh onions into high-value flakes and powder primarily for domestic and export markets.

According to the DG RMRDC, onion development would be a massive boom for Nigeria. He also suggested venturing into other raw materials developments like jute bags, high market values, etc.

During the meeting, the managing director of BOI expressed optimism and indicated a strong willingness to partner with RMRDC. He, however, noted that all necessary variables and factors for success must be critically evaluated before full implementation.

Both organisations agreed to embark on thorough research and feasibility studies to ensure the project achieves its objectives of reducing post-harvest losses, increasing onion shelf life, improving farmers’ incomes, and unlocking export opportunities for Nigerian onion products in the global market.

Findings revealed that the problem of post-harvest losses in Nigeria’s onion industry is staggering. The country produces approximately 2 million metric tons of onions annually.

Still, 50 per cent of this produce is lost due to inadequate storage facilities and lack of processing infrastructure, which translates to a whopping annual loss of between N300 billion and N500 billion ($750 million to $1.25 billion). The situation is further exacerbated by inefficient market access, leaving farmers with limited options to sell their produce.

According to the two institutions, the proposed onion processing facility is expected to minimize waste, create jobs, support industrial growth and national objectives for agricultural industrialization, ensure food security, and position Nigeria as a key player in the global onion value chain.