April 9, 2025 – Lagos, Nigeria – The Bank of Industry (BoI) and the Raw Materials Research and Development Council (RMRDC) have unveiled a groundbreaking partnership aimed at curbing Nigeria’s staggering post-harvest losses in the onion sector while turbocharging value addition through advanced processing. Announced today during a courtesy visit by RMRDC Director-General Prof. Nnayelugo Ike-Muonso to BoI Managing Director Dr. Olasupo Olusi in Lagos, the collaboration targets the establishment of a state-of-the-art onion processing facility to transform surplus fresh onions into high-value flakes and powder for domestic and export markets.
Nigeria, one of the world’s top onion producers with over 2 million metric tonnes annually—40% from Sokoto State alone—loses an estimated 40-50% of its harvest, worth over ₦300 billion ($182 million USD), due to inadequate storage and processing, according to the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN). “This is a strategic move to revolutionize Nigeria’s onion industry,” Ike-Muonso said, highlighting how the initiative could extend shelf life, boost farmers’ incomes, and unlock export potential. The RMRDC, under the Federal Ministry of Science, Technology, and Innovation, has long championed local raw material development, and this partnership marks a bold leap forward.
The BoI, Nigeria’s premier development finance institution, brings financial muscle to the table. Dr. Olusi emphasized a shared commitment to thorough research and feasibility studies, ensuring the project slashes losses—currently a blight on farmers’ livelihoods—and positions Nigeria as a global player in processed onion products. “Onion development could be a huge boom,” Olusi noted, eyeing ripple effects like job creation and industrial growth. The facility’s focus on flakes and powder taps a growing demand in food and pharmaceutical industries, where processed onions command premium prices.
This isn’t the RMRDC’s first rodeo in the onion game. In 2023, it collaborated with Sokoto State, Afri-Genetic Synergy Farms, and others to launch Nigeria’s first indigenous onion and garlic processing plant, a proof-of-concept cutting losses and inspiring this scaled-up vision. That plant, designed and built by Nigerian engineers, turned heads by processing perishables into shelf-stable flakes—an innovation this new venture aims to amplify nationwide. Posts on X today buzzed with optimism: “RMRDC and BoI tackling onion waste—finally some real agribusiness action,” one user wrote, capturing public sentiment.
The stakes are high. Nigeria’s onion sector, despite its output, lags in competitiveness due to outdated storage—like traditional silos prone to spoilage—and a lack of modern facilities. A 2019 Michigan State University study pegged onion post-harvest losses at 23.9% in some regions, a figure NOPPMAN says balloons during peak seasons. The BoI-RMRDC facility promises to flip this script, leveraging technology like slicing machines, dryers, and water treatment plants—similar to the Sokoto model—to preserve quality and quantity. Export markets, hungry for processed goods, could see Nigeria rival giants like India, which exports 34.93 lakh tonnes annually.
Challenges loom, though. Infrastructure gaps—poor roads, erratic power—have long hampered agro-processing dreams, while funding remains a hurdle despite BoI’s backing. Yet, the duo’s track record inspires confidence: BoI’s ₦1 trillion+ in SME loans since 2020 and RMRDC’s 114+ R&D projects signal serious intent. “This could spark clusters of SMEs in jute bags and packaging too,” Ike-Muonso hinted, eyeing a broader raw materials ecosystem.
As Trump’s tariffs roil global trade, Nigeria’s pivot to self-reliance gains urgency. With onions joining cassava and maize on the value-add radar, this partnership could light a path out of post-harvest purgatory—turning a neglected crop into an economic powerhouse, one flake at a time.
