Understanding compliance, certification for access to lucrative international markets

The non-oil economy is expanding beyond domestic markets; but the agribusinesses in Nigeria are not left out. For agribusinesses to be profitable, each operator has to have a global perspective in mind when setting up such businesses, this will allow for a seamless scalability into national, regional and international Markets.

Sustainability of agribusinesses especially small and medium agri-enterprise most times do not put into consideration sustainable plan for future opportunities; therefore, they seem to struggle at the stage of expansion especially where there are opportunities for such expansion outside of Nigeria. This, we have discovered as one of the major barriers to agri-enterprise in Nigeria being able to scale and operate both within Nigeria and globally. We have also realised that there is a huge knowledge gap in the area of compliance to standards and the ability of producers to adhere to international standards due to lack of knowledge of the same.

It is therefore important for agri-enterprise across value chains to understand the essence of compliance to international standards and best practices for access into lucrative markets as this would translate to profitable agri-business ventures.

There’s therefore the need to ask the question of ‘what is Compliance and certification?’ Compliance is the demonstration that specified requirements relating to a product, process, system, body are fulfilled, while Certification is a confirmation by an accredited 3rd party of conformity with certain set standards. Compliance and Certification serve as a passport for businesses seeking to access lucrative international markets, ensuring that their products meet the quality, safety, and regulatory expectations of consumers and governing bodies globally.

Why is Certification and Compliance essential for market access?

Compliance with international standards such as Global G.A.P., Hazard Analysis and Critical Control Points (HACCP), FairTrade, and Organic certifications according to the European Union (EU) and United State Department of Agriculture/National Organic Programme (USDA/NOP) and other voluntary international standards opens doors to global markets.

Though they are voluntary standards, they are market driven as a lot of countries and large retailers require certified products before they can be imported making certification a crucial factor in gaining access to foreign buyers. Without the necessary certification, businesses may face significant entry barriers, limiting their potential for international trade and growth. Example of such is the “USDA Food Safety Modernization Act”, which requires everyone intending to export into the US to not only register with FDA but also comply with the Food safety Management System(ISO22000), to be allowed access into the market.

Nigeria has a comparative advantage in the production and export of key agricultural products such as cocoa, ginger, sesame, cashew, and hibiscus, given its favourable climate and vast arable land. These products have strong global demand, with cocoa prices surging to over $10,000 per metric ton, the ginger market projected to reach $6.29 billion by 2030, and cashew exports valued at $351 million in 2023. Nigeria is one of the top exporters of sesame and hibiscus, further highlighting its potential in the global market.

However, non-compliance with international export standards has led to widespread bootlegging and informal trading, limiting Nigeria’s presence in the international export index. Issues such as poor-quality control, lack of relevant certification, and inadequate adherence to global food safety standards have resulted in frequent bans and rejections of Nigerian exports. For example, Nigeria’s ginger production dropped significantly due to a fungal infestation, and cocoa exports have faced issues related to pesticide contamination and the recent regulation by the EU for all Cocoa to be traceable and in compliance with the European Union Deforestation Regulation(EUDR).

The European Union (EU) became the world’s largest importer of cocoa, with imports valued at approximately €4.5 billion in the first quarter of 2024. The EU’s chocolate market was valued at €42 billion in 2022 and is projected to grow at an annual rate of around 4.8% between 2022 and 2027. Given this substantial market, compliance with sustainability standards such as the Rainforest Alliance and adherence to the EU Deforestation Regulation (EUDR) are crucial for Nigerian cocoa exporters. The EUDR mandates that cocoa imports must be free from deforestation, requiring strict traceability and environmental impact assessments. Similarly, Rainforest Alliance certification ensures that cocoa is produced under sustainable farming practices, promoting biodiversity conservation, fair labour conditions, and climate resilience.

The implication of not being properly listed on the export index is that Nigeria misses out on sustainable trade opportunities. Without formal recognition, Nigerian exporters cannot fully leverage premium markets, attract international investments, or benefit from fair trade and sustainability programs that ensure long-term economic growth. To fully capitalize on its agricultural strengths, Nigeria must address compliance challenges, enforce regulatory measures, and integrate into the formal global export system to enhance sustainability and long-term profitability.

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Some Key Certifications for International Market Access

Businesses across various industries, particularly agriculture and food production, benefit from international certifications that validate their compliance with industry standards and create in the minds of consumers be it for food safety, ethical or sustainable reasons. Some notable certifications include but not limited to:

• USDA Organic, EU Organic, JAS (Japanese Agricultural Standard) – Certify organic products that meet stringent organic farming requirements.
• HACCP (Hazard Analysis and Critical Control Points) – Ensures food safety by identifying and mitigating risks in food production processes.
  Global G.A.P. (Good Agricultural Practices) – Guarantees safe and sustainable agricultural production.
• Fairtrade – Ensures ethical trade practices and fair treatment of farmers and workers.
• Rainforest Alliance – Promotes sustainable farming and environmental protection.
• Food safety Modernization Standard (FSMS) – Covers various food quality, safety, and management system standards ISO 22000
• U.S. Food and Drug Administration (FDA) – Ensures that only products meeting set requirements are allowed entry into the U.S.
• ISO 22716 – internationally recognized standard that gives guidelines for the production, control, storage and shipment of cosmetic products.

To unlock Nigeria’s export potential, we must strengthen compliance mechanisms, enforce regulatory frameworks, and facilitate certifications for exporters. Integrating into the formal global export system will not only enhance Nigeria’s reputation in international markets but also ensure long-term sustainability, increased foreign exchange earnings, and improved livelihoods for farmers and agribusinesses.

Remember, if the market is “the house”, certification is “the key”.

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Annabel Kamuche, NICERT LIMITED