The Raw Materials Research and Development Council (RMRDC) and the Bank of Industry (BOI) have joined forces to tackle the huge losses Nigeria suffers every year from wasted onions. The country loses between N300 billion and N500 billion annually due to post-harvest issues in the onion value chain.
This partnership was revealed when the Director-General of RMRDC, Professor Nnayelugo Ike-Muonso, paid a visit to the Managing Director of the BOI, Dr. Olasupo Olusi, at the bank’s headquarters in Lagos.
Prof. Ike-Muonso, speaking during the visit, said the collaboration will lead to the setting up of a processing facility that will convert surplus onions into flakes and powder, which can be used locally and also exported.
He said, “This project is not just about stopping waste. It’s about boosting Nigeria’s agro-industrial development. Onions are essential in every Nigerian kitchen, and we produce about two million metric tonnes every year. Yet, we lose nearly half of that to poor storage, bad roads, lack of processing centres, and market inefficiencies.”
According to him, the planned facility will help preserve onions for longer periods, increase the income of farmers, and create more business opportunities in the agricultural sector. He added that the Council is also looking into other agricultural products that can be processed for both local and international markets. One of them is the production of jute bags, which have high demand and export potential.
BOI Managing Director, Dr. Olusi, expressed strong support for the initiative. He said the Bank is fully ready to partner with RMRDC and ensure the success of the project. He added that the Bank will work closely with the Council to carry out proper research and feasibility studies to avoid failures and ensure long-term impact.
“There is great interest in this partnership,” Olusi said. “But we must critically evaluate all necessary factors that could affect the outcome. From the supply of raw materials to logistics and market access, we need to get it right.”
Both organisations pointed out that Nigeria has a large onion-producing belt, especially in northern states like Kano, Sokoto, Jigawa, and Kebbi, where most of the country’s onions come from. However, the sector continues to struggle due to poor infrastructure, lack of processing centres, and limited access to finance for smallholder farmers.
The new processing facility is expected to reduce waste, extend the shelf life of onions, and enable Nigerian farmers and traders to tap into global demand for onion powder and flakes. The project is also expected to create hundreds of direct and indirect jobs, enhance food security, and support the government’s ongoing push for industrialisation and economic diversification.
Prof. Ike-Muonso said the RMRDC is committed to unlocking the full potential of Nigeria’s raw materials sector by working with relevant stakeholders to develop value chains, reduce waste, and boost exports.
The initiative is seen as a timely intervention, especially at a time when food inflation is rising and the country is looking for ways to increase non-oil revenue. Experts say if fully implemented, the onion processing project could become a model for tackling post-harvest losses in other agricultural sectors.
