National Rubber Association of Nigeria Chief Seeks Revival of Rubber Industry - June 2001

The president of the National Rubber Association of Nigeria (NRAN), Chief Bassey Edem, has stressed the need for Federal and state governments to urgently embark on programmes that would revamp the rubber industry.

Speaking in Benin at the fourth general meeting of the association, Chief Edem stated that if urgent steps were not taken, "Nigeria may have to import natural rubber to meet its own domestic requirements in the next few years.

However the Minister of Agriculture, disclosed that the Federal Government had approved the planting of 17,000 hectares of rubber annually over a four-year period at a cost of N1.59 billion under its Agricultural Rural Transportation Programme. Despite the minister's assurance, Chief Bassey insisted that the rubber industry is still facing serious difficulties within Nigeria and at the international market. Pointing out that the rubber industry could provide not only employment and rural development facilities but a significant source of foreign exchange earning.

Currently, Nigeria produces about 160,000 metric tonnes of rubber per annum, while most of the existing rubber trees today are of low yielding varieties which are now over 30 years old and are over-exploited beyond their economic life of 25 years. The high cost of production is another problem facing the rubber industry in Nigeria.

Nigeria set to be net importer - June 2001

Nigerian rubber producers have warned that the country could become a net importer as early as next year due to the incessant rise in demand that has coincided with falling production. At the annual conference of the National Rubber Association of Nigeria (NRIN) in Benin City, producers said that by 2002, the country will be dependent on imports to supply local industry.

Over the last few years, production has virtually collapsed, as old trees cut down for firewood have not been replaced. NRIN president, Bassey Edem, estimated that Nigeria will be consuming between 30,000 and 35,000 tonnes of natural rubber in 2002 while production will be less than 30,000 tonnes. Five years ago, Nigeria produced around 110,000 tonnes of natural rubber which has fallen to about 60,000 tonnes this year and is further poised to drop to 30,000 tonnes next year.

Ten years ago, Nigeria was consuming about 18,000 tonnes of rubber, while four years ago it used 20,000 tonnes.

High labour costs, dwindling acreage, low productivity due to old age of rubber trees and the fall in prices on the world market as the main reasons for the fall and aggravated by the lack of adequate rehabilitation or replanting. This has lead to numerous factories in Nigeria's rubber belt in the midwestern Edo and Delta states have shut down.

Significant government assistance in land acquisition and preparation and other subsidised inputs are urgently required in order to revamp the industry. Under a new scheme which has been approved by the current government, some 17,000 hectares of natural rubber will be planted annually over a four-year period by the central government. The plan is part of a rural transformation programme.

African producers to focus on quality - May 2001

African rubber producers are being encouraged to enhance the quality of their produce under an ongoing project funded by the Common Fund for Commodities. The project, which is being supervised by the International Rubber Study Group (IRSG), will involve the construction of a quality control laboratory testing facility in Nigeria, Gabon, Ghana, Cameroon and Ivory Coast

The laboratories will assess rubber samples from processing facilities to determine the relevant quality certification. Most of the testing will be of the Standard African Rubber grades of SAR3, SAR10 and SAR20, although some speciality grades will also be included. The scheme is expected to be running by the end of the year.

Nigeria's rubber in decline - April 2001

Nigeria's rubber output is expected to fall by 12.5% to 70,000 tonnes this year sparking fears of a long-term decline that may result in the country becoming a net importer.

Last year, Nigeria's rubber output peaked at around 80,000 tonnes, but this is set to fall by 10,000 tonnes in 2001 due to dwindling hectarage and a lack of replanting and rehabilitation of existing farms.

Albert Oburoh, secretary of the National Rubber Association of Nigeria, stated:

"Very few farmers are in rubber cultivation now - our people have gone to look for crude oil money in the cities. We may begin to import rubber in the near future. Factors such as old trees yielding little rubber, the absence of large plantations, a failure to replant and rehabilitate existing farms and low world prices will combine to lower Nigeria's 2001 output."

Rubber trees in the major producing southern states are few, old and scattered and are being felled for firewood and other purposes. High labour and other input costs are also contributing to the decline in Nigeria's rubber output from an estimated 160,000 hectares.

An action plan for rubber development, under which the state will set up a task force to boost replanting and rehabilitation of existing farms, has been submitted to the government.

Niger to Relaunch Gum Arabic Production - October 2000

Niger intends to relaunch gum arabic production, as part of efforts to improve its trade balance, provide earnings to the rural population and enhance reforestation.

Mahamane Laminou Attou, the national environment director stated that 45 percent of plants cultivation this year were acacia trees, a specie that produces gum arabic.

Niger's Environment ministry is said to have received a 200 million CFA Fracs in aid from the FAO to prepare a national strategy for a relaunch of gum arabic production.

The relaunch of gum arabic production could also help the population facing chronic food shortages, as well as improve Niger's balance of trade. At its independence in 1960, gum arabic was Niger's second export product after groundnuts. But the 1972-73 drought and the disappearance of the national company for the commercialisation of agricultural products, Copro-Niger, have impacted negatively on production, which fluctuated between 40,000 and 60,000 tons per annum, and finally dropping to 1,800 tons. A ton of gum arabic costs 800,000 CFA Francs on the national market.

Nigerian Rubber Boost - September 2000

The Nigerian Government is introducing a plan to increase gum arabic cultivation by 1,000 hectares in the Northern state of Yobe. A new technical committee has been set up to assist with production, processing and export matters.

These moves are hoped to increase foreign exchange earnings and create numerous jobs in the area.

Nigeria currently produces 6,000 to 8,000 tonnes of gum arabic a year. Other producing countries include Senegal, Chad, Niger, Mali and Mauritania.

Nigerian Rubber Industry - $25 Million Loan - July 2000

Michelin Nigeria Limited and European Investment Bank (EIB) are currently holding talks regarding a potential $15 million long term loan to finance the expansion of the Nigerian rubber sector.

The loan will represent 60% of $25 million required for the establishment of 10,000ha of new rubber plantations. Michelin will provide the remaining $10 million.

The Nigerian Government are expected to guarantee the loan. Current policy is pressing for growth in the agricultural sector in order to shift the country's reliance on crude oil for foreign exchange earnings.

An initial pilot study will be undertaken in Edo State where 2,000ha of rubber will be planted at an estimated cost of $2500 per hectare. Over the next 10 years co-operatives in the Delta, Ogun and Ondo states will also benefit from this loan.

The beneficiaries will repay the loan through the sale of the rubber to Michelin Nigeria who will in turn guarantee the farmers competitive prices.

Currently Nigeria produces only 3% of the worlds 6 million tonnes. It is hoped that this will escalate especially as Nigeria has ideal soil type, climate and yield per hectare.

Nigerian Output Falls - May 2000

Nigerian natural rubber output has fallen to 45,000 tonnes for 1999. This is due to the fall in world market prices.

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