The World Trade Organisation (WTO) ranks Nigeria as the largest food market in Africa with significant investment in the local industry and a high level of imports. The food and beverage sector is estimated to contribute 22.5% to the manufacturing industry value, and 4.6% of the country’s GDP. The Raw Materials Research and Development Council (RMRDC) is working judiciously to further consolidate on this. BINTA SHAMA reports.
The Raw Materials Research and Development Council (RMRDC) has been making efforts to achieve its goal via Research and Development (R&D) as spelt out in its mandate.
With this, the federal government will advance every sector of the economy using the available raw materials in the country.
About RMRDC
As a parastatal of the Federal Ministry of Science, Technology and Innovation (FMSTI), RMRDC has the mandate to promote the development and utilisation of raw material. It was established by Decree 39 (now Act) of 1987, commenced operation in Lagos in 1988 and operating across the 36 States of Nigeria with FCT coordinating Offices having its Corporate Headquarters in Abuja.
In taking advantage of its broad-based mandate, the agency contributes to Nigeria’s economic development by providing valuable information at public domain for policy and investment, having the following sectoral areas of focus: Chemicals and Pharmaceutical; Electrical and Electronics; Food, Beverages and Tobacco; Non-Metallic Minerals; Motor Vehicle and Miscellaneous; Wood and Wood Products; Domestic and Industrial Plastics, Rubber and Foam; Building and Construction Materials; Textile, Wearing Apparel, Leather and Leather Products; Pulp Paper and Paper Products, Printing and Publishing; and New and Construction Materials. The above covers every area of livelihood to give humanity comfort and reason for living.
Using nation’s vast raw materials
As Nigeria’s focal point for the development and utilisation of the nation’s vast raw materials , the council has a vision to be an indispensable catalyst for industrial growth and development in Nigeria and a mission to promote the development and optimal utilization of Nigeria’s raw materials for sustainable industrial growth.
Further to this, it also has the ‘mandate’ to draw up policy guidelines and action programmes on raw materials acquisition, exploitation and development; to also review from time to time, raw material resources availability and utilisation with a view to advising the Federal Government on the strategic implication of depletion, conservation or stock-pilling of such resources, amongst others.
Tea & coffee and its benefits to health
In the area of tea development and production, the RMRDC is not lagging behind either. It’s no secret that drinking tea is good for you. Tea has been an integral part of traditional medicine and is revered as a ritual in the world. Study, shows that the Chinese and Japanese have consumed this tea to improve health for centuries. It’s even promoted in Western medicine as a way to treat symptoms of the cold and flu. Tea is said to be one of the most frequently consumed beverages in the world. There are two main categories of tea: true teas and herbal teas. In addition, there are flavored teas that combine a true tea base with herbal infusions. True teas are made using the leaves of the tea plant known as Camellia sinensis. These teas include green tea, white tea, oolong tea, pu-erh tea, and black tea. While these teas are made using the same leaves of the Camellia sinensis plant, the difference in color and taste arises from the production process. The benefits of drinking tea go far beyond simply feeling better when you’re sick, in the sense that it has been observed that drinking tea can help protect brain health, improve heart health, and may even prevent certain types of cancer, boosts energy, may regulate blood sugar, aids digestion, supports mental health and may aid weight loss.
Food, Beverages and Tobacco
In the Food, Beverages and Tobacco sectoral areas of focus, Blueprint identifies RMRDC’s R&D intervention to reduce importation and look inward to patronise indigenous inventions in same sector.
This was well captured in a recent progress report on the achievements of the Council. It states: “In furtherance to its boosting programme on tea and coffee, the Council designed and developed two (2) units of tea processing equipment which were presented to the Tea and Coffee Association for value addition. The Council has established a business link among UNILEVER PLC., Master Tea and tea farmers for local sourcing of tea leaves and leaf buds. This has improved backward integration of tea and coffee production in the country.”
Boosting nation’s GDP
The food and beverage industry is critical to every economy in the world, and Nigeria is no exception. Research shows the food and beverage sector is estimated to contribute 22.5% of the manufacturing industry value, and 4.6% of the country’s GDP.
Consumer preferences and their consumption habits are changing drastically around the world from having sugar-laden carbonated soft drinks to healthier halos such as tea and herbal drinks. These factors are creating a favourable situation for many leading tea companies across the world with the global tea market growing at an unprecedented rate over the last few years. The tea industry is said to be stealing the spotlight in the global beverages market owing to the growing number of people across all age groups beginning to choose drinking hot tea over other beverages.
In recent years, the performance and contribution of players in this industry to the Nigerian economy have grown in value and relevance.
WTO’s ranking
The World Trade Organisation ranks Nigeria as the largest food market in Africa, with significant investment in the local industry and a high level of imports. The food and beverage sector is estimated to contribute 22.5% of the manufacturing industry value, and 4.6% of the country’s GDP.
Further study shows that in 2018, Central Bank of Nigeria (CBN) Governor Godwin Emefiele noted that Nigerians spend an average of 73% of their income on food and beverages products. Given the choice however, a vast majority of Nigerian consumers will opt for food and beverages products made outside of the country. Nevertheless, further research shows that, in the last five years, more indigenous brands are coming up or expanding to meet the needs of the Nigerian consumers who prefer local flavours.
IMF and PwC estimates
According to IMF and PwC estimates, Nigeria has the potential to be the fastest growing largest African economy, with a projected annual GDP growth rate of 4.2% in the period 2016-2050. This will push up the GDP rankings to become the 14th largest economy in the world by 2050. In terms of population, Nigeria will be the 3rd largest in the world by that time -larger than the United States of America.
Spending on food In Nigeria was estimated at almost USD 44 billion in 2017, with an average food spend per person, per year around USD 220: low-income consumers dominate. Growth in spending on food and beverage, it is said, will see a bump over 2020, as consumers re-prioritise their spending patterns toward essentials due to Covid-19-induced lockdowns.
The country’s growing population and urbanisation presents opportunities for the industry as a whole, including Flemish exporters. This report intends to give a high-level overview of both the developments in the industry, as well as trends and opportunities that may arise out of them.
RMRDC DG upbeat
Elated by the modest achievements, RMRDC Director General Professor Hussain Doko Ibrahim says all projects being implemented and harnessed, are long term, from which the nation and the entire citizenry as well as generations yet unborn, stand to benefit.
