Ayodeji Bakare, also known as Bongolee speaking recently on an interview programme, about his outburst to Mr. President.
The outcry of a concerned Nigerian in diaspora, one Mr. Ayodeji Bakare, popularly known as Bongolee, has attracted mixed reactions from Nigerians, where he recently screamed while speaking to the Nigerian President, Ahmed Bola Tinubu, saying “commodification of the naira; monetary policy, commodification of then naira; cassava, use cassava” in about 15 seconds. In the viral video reportedly captured in New York where President Tinubu had attended the 78th session of high-level meetings of the United Nations General Assembly (UNGA); Bongolee was seen to have had the President stop in his tracks for few seconds to give him a short-lived attention.
The viral video has, however, sparked reactions about how the clamour to use cassava for monetary policy would solve the myriads of problems facing the Nigerian economy, now that a dollar to naira exchange rate is about N1,000 in the Nigerian black market. This is even coming amidst rising inflation rate, which keeps making food prices soar while leaving many poor Nigerians “suffering and smiling”. The idea of commodification is often used to describe the process of making something of little or no economic value to replace other social values. According to scholars in various fields such as sociology, economics and cultural studies, commodification refers to the process by which goods, services or even ideas that were not previously treated as commodities are transformed into objects or entities that can be bought, sold and traded in the marketplace for better value.
This call by this Nigerian is suggesting that President Tinubu should modify cassava in a way that it can be exported in large quantities and also prioritised, just the way crude oil is prioritised for export. Recently, farmers under the auspices of the Nigeria Cassava Growers Association (NCGA), has called on the President to focus on massive cassava production and milling to trigger generation of billions of dollars as foreign exchange for the economy. The cassava growers had postulated the idea relating it to how Malaysia had taken palm seeds from Nigeria to transform their economy today, and even generating more than twice what Nigeria earns from her own palm oil. Meanwhile, the Nigerian economy, which has mostly relied on crude-oil as a mainstay of the economy, is still grappling with issues of oil theft, damaged pipelines, illegal mining of gold and other minerals, among others.
What Adedeji Bakare’s outcry means
According to economists, the outcry of the young man, to Mr. President simply means that a certain quantity of cassava should/can be traded at a particular amount of cash. For instance, 1kg of cassava equals to N200 in the market. This is simply using cassava, a widely grown crop in Nigeria as a basis for creating a new type of currency or financial instrument/tangible asset, which would in turn, give confidence in the value of the naira. The implication of this, according to experts, would mean that the government would need to hold a significant amount of cassava consistently-produced and supplied, to support the naira. Historically, currencies were often tied to physical commodities like gold or silver, a system known as ‘gold standard’ and practised in nations like the United States. Although this is not a new clamour in Nigeria; as it was popularised in governments like the regime of President Olusegun Obasanjo, where cassava flour was strongly advocated for to be used for spirits, among others.
Potentials in cassava to stabilise the Naira
Nigeria is currently a big player in the global cassava market, being the largest producer with an annual output of over 34 million tonnes of the tuberious roots, according to the Food and Agriculture Organisation (FAO) of the United Nations. Bongolee, however, asserted on
Cassava leaves and roots are sources of valuable derivatives, including flour, food, ethanol (alcohol), animal feed, starch, a few biodegradable products, glucose syrup and sweeteners. As of 2022, reports have it that the global market value of ethanol stood at $99.06 billion in 2022 and is expected to surpass $162.12 billion within the next decade. Similarly, forecasts have stated that although the market size of starch was $59.31 billion in 2022; it is projected to hit the $87 billion mark before 2030. Also, cassava flour, which is said to be rich in fibre and protein, is gaining traction globally as its uses expand in the kitchen and pastry industry.
Ayodeji Bakare, also known as Bongolee speaking recently on an interview programme, about his outburst to Mr. President.
In its 2022 report, Data Bridge Market Research submits that cassava was previously primarily used in food applications, but due to its ease of availability, it is now also being used in non-food applications such as in the production of pharmaceuticals, adhesives, and papers. Data Bridge Market Research analyses that the cassava starch market, is valued at USD 118.81 million in 2021 and is expected to reach the value of $US 198.11 million by 2029. Cassava starch, also known as tapioca starch, is extracted from cassava roots and is one of the major components found in cassava. Cassava starch is used in the production of monosodium glutamate (MSG) as well as a binding agent and sweetener in a variety of food manufacturing applications because of its gluten-free nature, its starch is used in a variety of products and it is primarily used in celiac disease.
Challenges facing cassava cultivation
According to reports, many farmers still harvest major of their cassava produce manually, leading to low yield per hectare. This is one of the biggest challenges confronting farmers has been identifies as low/poor yield per hectare; thus limiting opportunities in cassava value chain. FAO has reported Nigeria’s average farm yield of the cassava tuber as seven metric tonnes (MT), compared to Ghana’s 22.5MT per hectare and Indonesia’s 26.6 MT. Many Nigerians are worrying that if actions are taken now in the direction of Bongo Lee’s suggestions, without the sector fully industrialised for maximum productivity, as farmers still grapple with poor weed control, and high cost of farm inputs; Nigerians may have to suffer for mismanagement again as in the case of crude oil.
Besides that, there is also the issue of limited acceptance of cassava products. According to a report by Punch, the first attempt by the Federal Government of Nigeria to introduce cassava bread into the country with the ultimate aim of making it the national bread, was in 1982. This was done under the administration of ex-President Shehu Shagari with a decision made that wheat and cassava flour would be used to make bread. However, the directive faded away with the Shehu Shagari administration in December 31, 1983. Although, the government of President Olusegun Obasanjo also tried to resuscitate the idea of cassava bread, flour millers reportedly died the idea with their resistance to the scheme; stating that cassava flour would not allow the dough to rise.
Despite the efforts of bodies like the International Institute of Tropical Agriculture and the National Root Crops Research Institute, especially with researching and produced improved varieties of cassava for the production of high quality cassava flour, the will of stakeholders in the flour and baking industry to accept cassava flour is still weakened.
Why cassava-commodification of naira is not realistic
As of 2021, the Central Bank of Nigeria had said the country’s cassava-by-products import value stood in the region of $580 million, but this has not translated into much effect on the economy and standard of living for an average Nigerian. No doubt, efforts to make cassava a viable major export to boost Nigeria’s economy have been back and forth; mostly due to challenges such as inadequate infrastructure, inconsistent policies, poor mechanisation, limited access to credit, and the prevalence of diseases affecting cassava crops. Achieving a successful cassava value chain requires sustained commitment, investment, and coordination among various stakeholders.
Previous initiatives targeting the use of cassava flour as a composite of wheat flour have suffered setbacks. For example, in 2022, the government had mandated wheat millers to substitute five percent of wheat flour for cassava flour; later it was raised to 10 per cent, but the millers were unable to sustain this as access to sufficient quality cassava domestically was not up to par to customers’ purchase criteria. It is obvious that asking the government to commodify naira using cassava is a complex economic idea if some of the highlighted challenges are not strategically addressed. This suggestion definitely requires careful consideration and evaluation for intentional planning and critical executions for a potential impact on the economy.
In conclusion, the history of the Nigerian government’s attempts to commodify cassava reveals both commendable efforts and persistent challenges. While each initiative brought some improvements to cassava farming and processing, long-term sustainability remains an issue. Moving forward, addressing these challenges and ensuring consistent support for cassava value chain development is crucial for Nigeria to fully harness the potential of this vital crop and drive economic growth through the agriculture sector.
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