RMRDC DG seeks intervention funds to tackle post-harvest losses

Director-General of Raw Materials Research and Development Council (RMRDC) Prof. Nnanyelugo Ike-Muonso, has appealed to the Bank of Industry (BoI) for intervention funds to develop processing technologies and equipment to prevent post-harvest losses.

Ike-Muonso made the appeal when he led officials of the agency on a courtesy visit to the Managing Director of the BOI, Dr. Olasupo Olusi, in Lagos.

The visit is part of the council’s continued attempt to foster collaboration with critical stakeholders in ensuring industrial growth and development of the country through local content and technology development.

Ike-Muonso clarified that RMRDC was not seeking research funding, but intervention funds to catalyse critical projects capable of enhancing productivity and efficiency in several agricultural value-chains and mineral sectors of the economy.

Ike-Muonso described the meeting as being very strategic, highlighting the synergy between the role of BOI in providing financial support for industries and that of RMRDC in focusing on sourcing, development and utilization of local raw materials for industrial inputs.

He noted that RMRDC had recently developed a comprehensive database of resource endowments in the country which have been categorized based on SMEs characterization, while using the information to cluster small-holder business owners and operators, including agro raw material-producers, artisanal miners and others in the solid minerals sector.

Ike-Muonso also pointed out that RMRDC currently operates the largest machine and equipment development facility in West Africa, located in the RMRDC Research and Demonstration Plant Complex in Abuja.

He appealed for direct support to SMEs at the cluster level and intervention funds to develop processing technologies and equipment for value- addition and more importantly, to prevent post-harvest losses.

In his response, Olusi commended the efforts of RMRDC in promoting the development of industries through local raw materials utilization and highlighted the criteria for funding which includes project based lending, cluster-based product programmes and special intervention funds.

Also commenting on the proposed collaboration, Director, Industrial Plant and Equipment Department, Engr. E. I. Kwaya reiterated council’s immediate need for support in process development to enhance value-addition and reduce wastages from the farm gate to the market.

He cited an example of onions, for which Nigeria is the second largest producer in Africa, with 2 million metric tonnes a year, only after Egypt.

He lamented that Nigeria still imports onions at an estimated cost of about ₦35 billion, due to post-harvest losses.

Kwaya noted that the Council is partnering with a private manufacturing plant in Sokoto which currently produces 100kg of onions powder daily, but with some intervention can be upscaled to 500kg per day.

This, he said would require about ₦150 million to install an onion dryer and lyophilizer for processing raw onions into flakes and powder.

The same, he said, also applies to other crops such as tomato and ginger.

Having listened to the submissions from RMRDC, Olusi emphasized the need for a holistic approach to the value-chain intervention projects and reiterated that BOI primarily funds private-sector projects and not government agencies.

To align with this mandate, Ike-Muonso assured him that RMRDC has an ongoing collaboration with Unilever Plc., which would serve as off-takers of the products.

He invited the MD to pay a visit to the RMRDC Demonstration Plant Complex.

Olusi requested that RMRDC submit a detailed proposal, emphasizing the role of off-takers and incorporating a Special Purpose Vehicle (SPV) to drive the various projects.

Ike-Muonso also seized the opportunity to inform the MD of a Bill being sponsored by RMRDC in the National Assembly, to ensure that no primary raw material is exported out of the country unless at least 30 per cent value-addition is achieved.

“This is to boost domestic processing capacity, create jobs, and protect resources,” he added.