Nigeria is losing billions of naira in potential agricultural export earnings to neighbouring countries as restrictions on unprocessed crops, high export costs and delays at Nigerian ports push traders to move their produce through other West African countries.

According to a report published by BusinessDay on October 13, 2026, Nigerian agricultural commodities, including cashew nuts, soybeans, shea butter and cocoa, are increasingly being transported through neighbouring countries such as Benin Republic and Togo before being exported to international markets.

The development is depriving Nigeria of valuable export revenue and foreign exchange while allowing neighbouring countries to record higher export figures for agricultural commodities they produce in relatively small quantities.

EXPORT RESTRICTIONS AND HIGH COSTS

Traders and farmers say intermittent restrictions on unprocessed agricultural exports, high handling charges and delays at Lagos ports have made alternative routes through neighbouring countries more attractive.

International trade expert Obiora Madu said the diversion of agricultural produce was driven by inconsistent government policies, tariffs, port inefficiencies, logistics challenges and difficulties in conducting business in Nigeria.

He explained that traders naturally seek the most convenient and profitable routes for their goods, adding that Nigeria’s export system was not adequately supporting local businesses.

NEIGHBOURS BENEFIT FROM NIGERIAN PRODUCE

The report highlighted a significant discrepancy between agricultural production and export figures in some neighbouring countries.

In 2024, Togo reportedly exported 168,372 metric tonnes of cashew nuts, approximately 20 times its domestic production of 8,405 metric tonnes, according to figures attributed to United Nations Comtrade and the Food and Agriculture Organization.

Similarly, Indian authorities are investigating a sharp increase in soybean shipments declared as originating from Niger, suspecting that some consignments may have originated in Nigeria.

India’s soybean imports from Niger reportedly reached 380,868 tonnes in the first seven months of 2026, despite the country’s limited soybean production.

The investigation has raised questions about the origin of the shipments and whether Nigerian agricultural commodities are being rerouted through neighbouring countries.

FARMERS ATTRACTED BY BETTER PRICES

Exchange-rate differences and lower transportation costs are also encouraging farmers and traders to sell their produce through neighbouring countries.

According to the report, an agricultural aggregator in Kwara State said farmers could receive about ₦1 million per tonne for soybeans transported to Benin Republic, compared with approximately ₦800,000 net per tonne when exporting directly through Lagos after port charges and registration costs.

Industry stakeholders say these differences make alternative export routes more attractive to farmers seeking better returns.

Ismail Abdulazeez, chief executive officer of EFN Product and Service Ltd, also pointed to the relative strength of the West African CFA franc against the naira and the lower costs and faster turnaround times offered by ports in Lomé and Cotonou.

CALL FOR EXPORT REFORMS

Agricultural exporters say Nigeria risks losing its competitive position in international markets unless the government addresses the challenges affecting formal exports.

They are calling for more consistent trade policies, lower port charges, improved logistics and a more efficient export system that enables farmers and businesses to sell their produce internationally at competitive prices.

Stakeholders warn that without reforms, Nigeria could continue losing export earnings, foreign exchange and economic opportunities to neighbouring countries, despite its significant agricultural production capacity.

They maintain that creating a more supportive environment for agricultural exporters would help Nigeria retain the economic benefits of its agricultural wealth, create jobs and strengthen the country’s position in global commodity markets.