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The wholesale price of yellow onions 2nd grade has risen to ₦‎120, 000 (USD 270) per bag, while that of the red new onions is ₦‎60, 000 (USD 135) per bag. The yellow variety might increase up to ₦‎150, 000 (USD 338).

The current supply of onions which is 2nd grade is from old stock (storage) not directly from farm.  

 

At the end of October, onions from storage were sold for ₦‎60, 000 (USD 134) for the yellow variety origin of Sokoto and, ₦‎50, 000 (USD 112) for the red variety origin from Kaduna. But as the scarcity of red onions from Kaduna persists in the market, the price of yellow onions from Sokoto jumped from ₦‎60, 000 (USD 134) to ₦‎120, 000 (USD 270), with a 100 percent price increase. 

it is important to note that the current supply of onions, which is 2nd grade, is from the old stock (storage), not directly from farm. .

Onions Sections, Mile 12 International Market Lagos
Onions Section, Mile 12 International Market Lagos

Is Nigeria among the largest producers of onions in the world?

 

No doubt that Nigeria produces over two million tonnes of onions annually and, this is what makes the country the foremost producer of onions in West-Africa, second in Africa and sixth in the world. However, it’s shameful that from Sokoto to Kano, Kebbi to Zaria, Jigawa to Yobe there is no single modern storage facility for onions. Farmers are still using the traditional system of boombo hut to store onions. Every year, 30 to 40 percent of harvested onions get spoilt due to poor storage facilities. 

 

The challenge is in the inability of all stakeholders in the value chain to establish modern onion storage systems. In September this year, the same yellow variety earlier talked about was sold at ₦‎30, 000 (USD 66) while the red variety goes for ₦‎20, 000 (USD 44) per bag. 

 

The high cost of petrol which has expectedly affected logistics and transportation, has also contributed to scarcity of onions in Nigeria.

Two years ago, traders transport their onions from Sokoto/Zaria to southern part of the country at ₦‎1500 (USD 3)/bag. Between last year and now, the cost jumped to ₦‎5,000 (USD 11)/bag. 

The price will stabilize when new crops come by the end of December. 

 

An average of 40 trucks of onions leaving Nigeria daily to neighbouring West African countries is as a result of middlemen that their interest is to maximize profit . Becouse the differential margin between Nigerian Local market’s price is lesser than the neighbouring markets.  Currently there is a margin of N20,000 (USD 44) to N30,000 (USD 66) difference between Nigerian Local markets and neighbouring markets, N10,000 (USD 22) difference between Mile 12 International Market and Ile-Epo Market in Lagos.

 

Also, there is N15,000 (USD 33) to N20,000 (USD 44) price difference between Mile 12 International Market and other commodity market in South-south and South-east of Nigeria. Despite the regular razing of commodity trucks of drivers of northern origin almost every week in the eastern part of the country by the so called “unknown gunmen”, the northern traders are still supplying onions to the region.

Lastly, I challenge all stakeholders in the onions value chain in the country, including myself, to put in place modern onions storage facility in the country.

 

Furthermore, there is a need for agro-tech companies that can improve varieties of our onions and work directly with stakeholders, as lack of improved varieties of onions in Nigeria is among the factors contributing to the scarcity and increase in prices of onions in this country.

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