Why did the groundnut industry decline in Nigeria?
These factors led to the gradual and eventual disappearance of Nigeria’s famous groundnut pyramids. One other factor that contributed to the decline of the groundnut industry was rural urban migration. With the oil boom came diversification and creation of more jobs in Urban areas.
Why are Nigerian groundnuts so volatile?
The Nigerian export markets are highly concentrated. This market concentration makes the market for Nigerian groundnuts very volatile, as the price of groundnut exports highly depends on demand in those few markets. ITC Trademap). More than 80% of all imports from outside Europe and the world come from developing countries.
Which country produces the most groundnuts in Africa?
Nigeria still stands as the largest producer of groundnut in Africa and the third largest in the world, coming after China and India. Nigeria currently produces about 2million MT accounting for 5% of the world’s production. However, the country does not export nearly that much.
Will Nigeria become a major exporter in the global market?
With the improved quality of its groundnuts and processing facilities, Nigeria could once again become a major exporter in the global market, as the world’s 3rd biggest groundnut producer. The Nigerian export markets are highly concentrated.