Nigeria's Agrochemical Industry Is Worth $120 Million

Date:08-02-2013

To tap more into the estimated $120 million (some N18 billion) annual market for agrochemicals in Nigeria, the Pesticides Manufacturers & Formulators Association of India (PMFAI) has held an exhibition in Lagos for its members to showcase their products. PMFAI is a national level association representing agrochemical industry in India with more than 200 companies as members.

Speaking at the opening ceremony of the exhibition, Mr Pradip Dave, PMFAI president said there is good market for agrochemicals in Nigeria, hence India's investment in the sector.

Giving an overview of Nigerian agrochemical market he said, "Nigerian companies consume in excess of $3.58 billion worth of chemicals per annum but produce just $380 million. The base chemical sectors, which consists mainly of petrochemicals, accounts for over 70 per cent of the total chemicals market in Nigeria."

He said, "There is a large market for agro-chemicals in Nigeria. It is estimated that the private sector agrochemical companies supply about 70 per cent of the total Crop Protection Products (CPP) demand approximately $120 million."

The total CPP supply, he said is usually composed of 30 per cent herbicides, 40 percent insecticides, 15 per cent fungicides, 8 per cent growth regulators and seed treatment chemicals, and 7 per cent rodenticides, nematicides and others.

Over the years, there has been little growth in the size (in quantity terms) of the CPP market, he noted. According to him, it is worrying that "the market and marketing of CPP in Nigeria are unorganised and not properly regulated. The trade deregulation has brought all kinds of traders into the CPP market, making it difficult to determine various market shares and sizes."

According to Dave, the registered distributors supply to large-scale farmers either directly or through their local agents at the retail level. Thus, it is estimated that by volume, 60 per cent is sold to the large-scale farms through direct sales by the companies and distributors and 40 per cent through government agencies and ADPs to small-scale farmers.

Also speaking at the exhibition, Mr Suhas Gangaram Bharadi, the director, Basic Chemicals, Pharmaceuticals $ Cosmetics Export Promotion Council, (CHMEXCI)L Mumbia India, said the total export of the items covered under the purview of CHEMEXCIL to Nigeria during 2012-2013 had been $90.3 million as against $85.5 million of the corresponding period last year, registering a growth rate of 5.6 percent.