Market Dynamics

Nigeria: Rubber Production Declining

Time: 2013-08-13 Source from: www.allafrica.com

The decline in the production of rubber in Nigeria has been described as alarming and worrisome especially to the nation's economy. This situation arose from the total neglect of rubber industry since the discovery of oil in the country.
 
National President of the National Rubber Association of Nigeria (NRAN), Mr Emmanuel Bassey, stated this adding that his association wants the revitalization of the industry because of its potential to boost the economy of the nation through returns from the non-oil sector, particularly in agriculture where the country has potentials and comparative advantage to increase production, revenue, employment and rural development.
 
He lamented that rubber which used to be the fourth largest foreign exchange earner for Nigeria after crude oil, hide and skin and cocoa, has since been neglected by government thereby throwing rubber farmers out of business.
 
He said rubber production has been on the downward trend from a peak of 113,479 metric tons before the advent of crude oil, to 46,000 metric tons in 2004 and has since then hardly recorded any significant increase in production. He cautioned that Nigeria must ensure it does not slide into an importer of natural rubber for its domestic use.
 
Several factors are responsible for the poor production of rubber in Nigeria among which are low yield of trees particularly the unknown pedigree that dominate the small holdings and preponderance of old trees that have passed their peak of production.
 
Bassey said the potentials for rubber development in Nigeria are very high and if only 50 percent of the stated targets are met, the country will earn significant revenue of not less than $2.86 billion or N3.2 trillion from export, generate employment for over 400,000 persons and develop the required boost in rural development and environmental conservation.
 
Researchers agree that there is the need to gear up efforts towards increased production and also the need for total valorization of rubber tree and to explore new uses for rubber, especially now that car tyres which used to consume over 70 percent of Nigeria's rubber are no longer produced in the country following the exit of Michelin and Dunlop tyre manufacturers.
 
Commenting, the Director Planning of Rubber Research Institute of Nigeria (RRIN), Dr Timothy Esekhade advised governments at all levels in Nigeria on the need to pay more attention to rubber production as a way of creating wealth and improving revenue generation and job creation.
 
He described rubber as an economic crop desired all over the world, whose products used to be the mainstay of the economy of the old Western and Mid Western parts of the country, adding, "over 80 to 90 percent of aeroplane tires, Earthquake shock absorbers in Asia, can be used to prevent building collapse and is the most sought after, after wood for furniture.
 
"Natural rubber which is in large quantity in Nigeria is an important source of raw material for industries especially shoes, carpets among others which when properly utilized can create employment and serve as an important foreign change earner for the country," he said.
 
According to the Rubber Research Institute of Nigeria, rubber is an important cash crop cultivated in 18 states of the country, which include Abia, Akwa Ibom, Anambra, Bayelsa, Cross River, Delta, Edo. Rivers, Ondo, Ogun, Taraba, Oyo, Ebonyi, Enugu, Osun, Ekiti, and Kaduna.
 
As a commodity exported as processed latex, ribbed smoked sheets or technically specified rubber, rubber is reported to be the second most significant non-petroleum foreign exchange earner in Nigeria.
 
Natural rubber production is considered to be one of the most profitable agro industrial ventures. It is a strategic material because it cannot be replaced by synthetic rubber in some important applications due to its outstanding characteristics like elasticity, resistance to abrasion, impact and corrosion, its impermeability, insulating properties and ability to disperse heat.
 
As reforestation crop, rubber can help to control the level of carbon dioxide in the atmosphere thus combating the green house effect. Rubber is currently used in more than 50,000 different products such as adhesives, tires, surgical gloves, health equipment, and accessories, condoms, coatings and floor coverings.
 
Dr Timothy also lamented that despite the huge benefits to be derived in rubber production, the commodity has been neglected especially since the advent of crude oil in the country.
 
Some stakeholders in the agric sector of the economy have also harped on the dangers of continued neglect of rubber in the country.
 
At a recent meeting of the National Agricultural Council of Nigeria held in Abeokuta, the Ogun State capital, Dr Kolawole Afolabi, a senior research officer of the Rubber Research Institute explained that rubber has great potential to take over from oil as a foreign exchange earner for the country. He said with $3,000 per ton for rubber in the international market, Nigeria which has the capacity to produce over 200,000 tons yearly can make a lot of money from increased rubber production.Part of the challenges facing rubber production in the country include neglect by relevant federal and state authorities in the country especially as a result of oil boom, price fluctuations, and land among others.
 
The Nigeria Rubber Association noted that government interventions were unduly delayed and limited in scope and practical actions were neither adequately sustained nor given the required financial backing for specific projects.
 
The institute also said that in order to encourage Nigerian farmers on rubber production government should give fertilizer, rubber seedlings among others free for farmers

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