Nigeria is a country richly endowed with agricultural products of varying importance. It is an agrarian society with over 90 per cent gross domestic product constituent made of agricultural export in the late 1970’s before the advent of crude oil. The current clarion call making waves in the country for citizens to return to agriculture has been given a boost by the federal government’s determination and pronouncement to make tax the major government revenue earner from the year 2009. Lagos state government has recently started implementing its own tax policies by openly demanding tax payment receipts from traders in the open market and defaulters’ shops and stalls locked up by tax officials. This is a signal for any discerning Nigerian of tax paying age to go back to land and engage in one agricultural business or the other to earn decent income, pay his/her tax, and live a decent life rather than remaining, unemployed, and suffering in abject poverty. One of such agricultural businesses profitable enough for you to engage in is the processing of bitter-cola for export.

The Project

Bitter (Garcinia) kola is in great demand in America, Britain, Germany, France, Italy, China, Japan, India and other Asian countries. It is used for food purposes apart from serving as a raw material in pharmaceutical industries for production of drugs. The product abounds in Nigeria as its growing is wide in the rural communities. Collection of the bitter kola from the rural areas and processing them for export market is a simple operation to undertake, less capital intensive, attractive to government support and above all, a noble occupation. The writer therefore strongly recommends this project especially to the unemployed youths, retired but not tired citizens to embrace this project, go to any Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) office around them for assistance and guidance, or contact the writer for assistance about foreign buyers, processing and packaging, and export procedures, etc.

Processing and Packaging

In the international market, bitter kola is always required in two forms, fresh or dried. However, most importers (or buyers) always want them dried. The drying must be done in a way that the colour and taste is not affected. Drying of bitter kola is done in three ways: sun drying, natural drying, mechanical drying (using drying machines). Sun drying is the popular method in our villages but products for international market must not be dried in the sun. Natural drying method is recommended. If it is allowed to dry naturally, the butterish colour of the product will not be affected. The purpose of drying is to reduce the moisture content. Drying by machines is also recommendable. The drying machines are locally fabricated and available at affordable prices, imported machines also exist at higher prices. Packaging of the products does not require a standard packaging method. The quantity of products to be exported at a point in time determines the packaging method. However, any prospective exporter can use the type of bag used in packaging rice.

Quality Control and Certification

The exporter must ensure good quality product. The product therefore must be free of foreign matters likes stones, sand, dirt, nylon, paper, etc. These will add unnecessary weight as well as contaminate the product. For the exportable product to achieve standard in terms of quality and packaging at the international market, the following parameters must be observed: commodities (the product) must be properly dried to avoid moldness, free from extraneous matters, must not be adulterated. Packaged in good packaging material. It must be of standard weight. It must be graded, marked and sealed. Must be free from pest infestation. Must pass FPIS test analysis so as to meet international accepted quality standard. Also Nafdac test analysis must be scaled.

Export Pricing

Currently a kg of bitter kola commands an international market price of $17, and the local price is about N200 per kg. In making your export pricing as regard any enquiry that you may receive from prospective buyers, the following steps must be carefully considered: analyse the enquiry carefully, note what the customer asked for CIF or FOB, delivery time and payment terms, etc.

Project Implementation/Cost Estimates

The project can be carried out on a small or large scale basis. A capital base of N100,000 is enough to start this business on a small scale. Raising this money could be by personal savings of the investor, borrowing from friends and relations, assistance from SMEDAN, loans from Microfinance banks, and/or other feasible sources. The viability of this project will ensure that the account of money raised in funding this project can be generated within two years of operation after all operational expenses are met.

The investor is advised to carryout a cost benefit analysis of this project through a feasibility study before implementation. The writer can be approached for further information and/or preparation of a detailed and bankable feasibility report.