Soya Beans

Nigerian soybeans are renowned for their exceptional quality, high protein, low oil, and excellent moisture levels. This quality is attributed to the country’s favourable climatic conditions, rich soil composition, and adherence to proper post-harvest handling practices. Butakament & Mout aggregation center is strategically located in Ilorin, North central Nigeria, close to the major sesame producing areas in Nigeria which include are Benue, Nasarawa and Jigawa States.  The northern states of Yobe, Gombe Kano, Plateau, Katsina, Kogi States also make contribute to the annual production values. 

Several companies are actively involved in soybean processing within Nigeria.  The key market drivers and  include substantial and increasing demands fueled by its crucial role in vegetable oil extraction and as a key ingredient in animal feed formulations. Direct human consumption in various culinary applications also contributes significantly to local demand.Nigeria's climate is well-suited for soybean cultivation across a significant portion of the country (17 states), ensuring a relatively consistent supply base. The introduction and adoption of improved soybean varieties are enhancing productivity and overall output within the sector. Nigeria holds a distinctive position in the global market as one of the few countries actively supporting the production of non-genetically modified (non-GMO) soybeans. This caters to a specific and potentially premium export market segment increasingly concerned with GMO-free food and feed.

The Nigerian soyabean market has demonstrated a strong Compound Annual Growth Rate (CAGR) of 5% over the past five years, indicating a consistent and upward growth trend. Projections indicate a substantial expansion of the Nigerian soybean market, reaching an estimated 3,000 to 3,500 metric tons by 2040. This long-term growth forecast underscores the sector's enduring potential. Access to both international and local markets is significantly enhanced by obtaining certifications of quality that confirm the product meets required specifications. This builds crucial product confidence among potential buyers.  

In 2021, Nigeria produced an estimated 1.8 million metric tons of soybeans, of which approximately 20% was being export. The country’s soybean exports have grown at a CAGR of 10% over the past five years, reaching $2.58 million in 2021. The main export destinations for Nigerian soybeans include Turkey, India, Pakistan, China, and the United States.

The strategic considerations and actionable Insights for exploring the processing of Soya Beans for local and export markets include the Familiarity with Regulations and a understanding of the evolving regulations and policies governing the soybean sector in Nigeria is crucial for navigating the market effectively.