…Tests ECOWAS, AfCFTA trade
Nigeria’s N945 billion onion industry has come under threat after an indefinite suspension of exports to Ghana, following disputes between traders at Kotoku Market.
The halt, which is owing to restrictions imposed by market actors at Kotoku Market in Ghana on Nigerian and Nigerien onion trucks seeking to offload consignments, has disrupted a key food corridor between the two ECOWAS members.
According to the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN), trucks have been delayed for days at the market, leaving exporters to absorb losses as perishable onions deteriorate.
The dispute puts N14.5 million at risk in the annual cross-border onion trade between both countries, with Nigerian truckers reporting losses as perishable consignments deteriorate at the border.
Aliyu Maitasamu, the national president of NOPPMAN, said the issue is causing “significant financial losses to Nigerian onion exporters and transporters and exposing our highly perishable onions to deterioration.”
He stated that the restrictions on Nigeria’s onion supply to Ghana violate agreements under the ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Area.
He called on ECOWAS to intervene, arguing that “no market association or group of traders should be in a position to unilaterally determine the movement… of legitimate consignments originating from another ECOWAS Member State.”
Experts say the dispute raises questions about the effectiveness of regional trade pacts meant to guarantee free movement of goods.
With Ghana heavily dependent on Nigerian onions and Nigeria’s broader N945 billion sector – the Food and Agriculture Organisation’s value estimate – facing pressure from insecurity and logistics costs, the suspension risks higher food prices in Ghana and lost income for Nigerian farmers, while testing AfCFTA’s promise to boost intra-African trade.
They noted that if unresolved, the indefinite suspension risks undermining confidence in AfCFTA’s promise to boost intra-African trade and sets a precedent for other food commodities that underpin food security in West Africa.
Obiora Madu, international trade expert, said the dispute exposes deeper structural problems. “The onion dispute is not really about onions. It is about the credibility of regional trade integration,” he said.
“We have excellent regional instruments on paper. But integration is not achieved merely by signing protocols.”
He warned that the suspension increases the risk of doing business in West Africa. “A trader may have a buyer, a truck, the product, the documentation, and the money, but if market access can suddenly be disrupted by a local dispute, the predictability required for serious cross-border investment disappears.”
Madu argued that it exposes the gap between trade agreements and implementation. “If two neighbouring countries cannot resolve a relatively contained commodity-trade dispute… it raises legitimate concerns about how we will manage more complex disputes involving billions of dollars,” Madu said.
“The real test… is whether a trader can cross the border with confidence that the rules will still be there when he arrives.”
Eric Alao, an entrepreneur and lecturer at Lead University, noted that ECOWAS has failed to resolve the issue that has been ongoing between Nigerian and Ghanaian traders for a while.
“AfCFTA, which is supposed to address issues like this that discourage intra-Africa trade, is still on paper and not really functioning the way it should,” Alao noted.
He explained that a stronger Ghanaian cedi against the naira is also fueling disputes among traders from both countries, as Ghanaian traders prefer coming to Nigeria to buy for their own market instead of allowing Nigerian traders to supply.
Data from the Nigerian Foreign Exchange Market (NFEM) shows that 1 Cedi exchanged for N115.85, confirming Alao’s claim.
With an annual production of approximately 1.7 million metric tons, Nigeria ranks fourth in Africa and fourteenth globally, according to FAO 2024 data.
The country boasts a robust onion market, supplying neighboring African nations such as Côte d’Ivoire, Niger, Ghana, Benin, Chad, Cameroon, and Senegal. However, Ghana accounts for the bulk of the country’s regional onion trade.
Maitasamu, who is also the president of the Regional Observatory of Onion in West and Central Africa, acknowledged interventions by the governments of Nigeria and Ghana.
However, he said, “despite these interventions and the resolutions reached, Nigerian onion trucks continue to face restrictions in the offloading of their consignments at Kotoku Market.”
He said its concern is not with the people of Ghana, citing “longstanding economic, diplomatic and people-to-people relations.”
He urged ECOWAS to act as a neutral mediator and facilitate talks involving both governments, trade authorities, and onion associations.
It also proposed a formal Memorandum of Agreement for cross-border onion trade guided by the ECOWAS Trade Liberalisation Scheme and AfCFTA.
“Such an arrangement should establish clear rules on market access, truck movement, offloading, allocation of consignments, and dispute resolution,” Maitasamu said. “We are seeking a permanent and fair system,” he added.
Industry challenges
Maitasamu highlighted several key challenges plaguing the onion industry, including high post-harvest losses, limited access to improved seed varieties, inadequate credit facilities, and the absence of agricultural subsidies for onion farmers.
He pointed out that the lack of proper storage infrastructure forces farmers to rely on traditional storage methods, resulting in the loss of over 50 percent of their harvest. This not only leads to significant economic losses for farmers but also impacts the broader economy.
