Measuring regional competitiveness in oilseeds production and processing in Nigeria: a spatial equilibrium modelling approach
通过空间均衡模型分析尼日利亚四个区域在油籽生产和加工中的竞争力,发现中部地带因地理位置优势在生产上最具竞争力,而东部因靠近港口在加工上最具竞争力,运输成本是关键因素。
The four main resource regions of Nigeria, namely, the East, Middle-belt, West and North, differ in their endowments in the production and processing of oilseeds. The Federal Government has allocated resources to the oilseeds sub-sector across the regions without apparent rational basis. Consequently, huge imports of oilseed products, high and unaffordable oilseed product prices, and the establishment of new oil mills in the face of frequent shutdowns and chronic under-utilisation of existing mills, still characterise the sector. In this paper, a spatial equilibrium model of the Nigerian oilseeds economy is used to determine the optimal location and number of mills across the regions, and to establish regional competitiveness in aid of the planning and development of the oilseeds sub-sector. In the model, production (farming and milling) activities are tied to arable land and milling capacity constraints. The shadow prices of the arable land and milling capacities are used as a measure of competitiveness. Results indicate that, because of its central location, the Middle-belt is the most competitive in oilseeds production at a shadow value of N 18,400 per hectare of cultivated land, followed by the North, West and East regions. However, the East is the most competitive in oilseeds milling, followed by the West, due to their close proximity to ports of export. These results suggest that transport cost is the main determinant of the viability of oilseeds production and milling in Nigeria.