Today we turn our attention to Nigeria’s fish industry. Industry sources suggest that catfish accounts for about 80% of fish produced domestically. Nigeria has over 200 different species of fishes which are untapped due to lack of modern aquaculture equipment, inadequate training of fish farmers and poor development of quality fish feeds. According to the federal ministry of agriculture, US$700m is spent annually on fish importation due to the country’s annual fish supply shortage of an estimated 2 million metric tonnes (mmt).
On Monday, the latest inflation figures were released by the National Bureau of Statistics. The data showed food inflation accelerating to 17.1% y/y. Price increases in fish was a primary driver.
The lingering fx sourcing challenges continue to put a strain on this segment. We gather that a 15kg imported bag of catfish previously sold at N6,000 is now sold for N11,000 – an increase of 83%.
As for locally produced fish, feeds prices have surged by over 80%, forcing some fish farmers to abandon their farms.
Sources: NBS; FBNQuest Research
In Q2 2016, fisheries GDP contracted by -6.8% y/y, compared with growth of 5.5% in Q2 2015. The decline mirrors the macro challenges being faced by the economy as a whole.
To drive the fisheries segment towards expansion, the FGN needs to develop policies geared towards encouraging aquaculture. For instance, addressing power shortages as well as promoting technology and training indigenous fisheries professionals.