Becoming a Local Food Content Activist

When the average business professional in Nigeria uses the words - “local content” - everyone automatically assumes that she is referring to the Nigerian Oil and Gas Industry Local Content Development Bill 2010 which was formally passed by President Goodluck Jonathan. This Bill, which places obligations on upstream oil companies in the areas of finance, community and local workforce, has been heralded by many to be one of the most progressive developments in the sector. More specifically, the bill is expected to unlock opportunities in the
local oil and gas industry, open up business opportunities valued at over $10 billion and create 30,000 direct jobs for small-scale enterprises in Nigeria.

Given the impetus for Oil and Gas Industry Local Content Development Bill, I would like to propose a similar bill for Nigeria’s agribusiness and agro-processing sector. This Bill – which I would like to call - “the Nigerian Food Content Development Bill” would stipulate that all food processors, restaurants, caterers, supermarkets and retailers should utilize and stock items that are made in Nigeria – unless there is no high quality, local alternative for a particular product. The Bill would also stipulate a minimum local content percentage for all inputs utilized by food processors, restaurants and caterers. Such a bill would create even more value than the Oil and Gas Industry Local Content Bill, not just in terms of direct jobs, the value of business opportunities that it would generate, but also in terms its impact on nutrition, household savings and quality of life.

Before all the successful importers raise an alarm about my idea, I would like to appeal to your good judgment and invite you to join me on an experiment for the next week. Visit at least two supermarkets and two restaurants in your neighborhood. Interview the sales staff and waiters about the source of the food that is being served or sold and you will be saddened by the responses. It is one thing for the new Minister of Agriculture and Rural Development - Akinwumi Adesina to state that government spent over N99 trillion on food importations between 2007 and 2010 (In 2010, the government imported wheat worth N635 billion, spent N356 billion on the importation of rice, N217 billion on sugar and N97 billion on fish.), but it is another thing to experience it firsthand.

In my current status as a local food content activist and food processor, I have become a keen observer of the activities of restaurants, caterers and food processing companies. Sadly, my observations reinforce the Minister’s assertions – at least 60% and in some cases, up to 90% of the food on our shelves and in our tummies is imported. For example, I visited a local restaurant outside Lagos early in the month and decided to run the same test. I asked the chef for the sources of the different food being offered to the clients. What surprised me was that in a relatively “local” joint, owned by Nigerians and focused on catering to our local taste buds, the menu was tilted in the favor of imported products or products that were imported and repackaged in Nigeria. Interestingly, the chef did not seem to give much thought to the issue of the source of food. In her mind, she was looking for the most convenient and cost effective options. When I asked her why the restaurant used imported instead of local chicken, she simply said that “they purchased it in the local market.”

High-end restaurants and supermarkets are even worse off – with some of them importing even their lettuce, tomatoes and potatoes from abroad. In fact, almost 90% of the potato chips served in restaurants across Nigeria are imported! Similarly, almost all of our fruit juice companies use imported concentrate instead of our local fruits – of which 40 to 60% go to waste.

Beyond our supermarkets, restaurants and caterers, every Nigerian household has an important role to play in improving the “local content” percentage of our daily consumption. Clearly it is easier to regulate the organized private sector, than the informal economy, hence the idea for the Bill.

While I recognize that it is more cost effective to import in the short-term, just as it has been easier for oil and gas companies to hire expatriates instead of training locals to do the work, in the long-term investing in our local produce is what will ensure our survival and sustainability as a nation. Clearly, any local content bill without a capacity building initiative attached to it is bound to fail. As a result, given the time frame required between when a bill is proposed and when it eventually gets passed, there is ample time to start building up the capacity and capabilities of our local agribusiness sector to ensure that they can easily displace imports.

Please next time you hear the phrase - “local content” - think about food, not just oil and gas! Nigeria needs more local food content activists who will support locally sourced and processed food - starting from their kitchens and will demand that their food processors, supermarkets and restaurants also do the same!

Visit www.aacefoods.com for more information.