The Poultry Association of Nigeria (PAN), Lagos State chapter, has expressed concern over the persistent egg glut in the poultry sector, attributing it to the low purchasing power of consumers.
The association also urged the Lagos State Government to expedite work on the proposed Egg Powder Factory at Igbodu in Epe Local Government Area to help absorb excess egg production.
The Lagos PAN Chairman, Mr Mojeed Iyiola, made the appeal in an interview on Tuesday in Lagos.
According to Iyiola, the poultry sector is currently experiencing an oversupply of eggs due to declining consumer demand.
“We are experiencing an egg glut because of the economic situation in the country.
“Many parents can no longer afford to buy eggs for their families as they used to. At this period, most households are prioritising school fees and other essential expenses.
“Since children are the major consumers of eggs, reduced purchases by families have resulted in excess supply,” he said.
Iyiola said the establishment of a functional egg powder factory would help preserve excess production and reduce losses incurred by farmers.
“To address the recurring egg glut, we need government support in establishing a world-class egg powder factory.
“Unfortunately, the project promised at Igbodu is progressing very slowly, while farmers continue to grapple with unsold eggs,” he said.
He noted that the limited shelf life of eggs exposed farmers to significant losses whenever demand dropped.
The PAN chairman said large-scale poultry farmers were bearing the brunt of the situation, as they produced far more eggs than small-scale operators.
“For small-scale farmers, eggs can be sold within a few days. However, farmers producing more than 1,000 eggs daily are forced to sell at reduced prices to move stock,” he said.
Iyiola, however, alleged that retailers and middlemen often maintained high market prices despite purchasing eggs from farmers at discounted rates.
“Even when retailers obtain eggs at lower prices, many still sell at previous rates to maximise profit.
“Some also demand credit from farmers who are already struggling to remain afloat,” he said.
He added that while the prices of some poultry inputs had begun to stabilise, the industry was still grappling with the shortage of Day-Old Chicks (DOCs).
“The major challenge apart from the current egg glut is the unavailability of DOCs, and farmers are still counting their losses because of it,” Iyiola said.
AfDB Commits $86m To Agro-Processing Zones Project
The African Development Bank (AfDB) says it has committed 86 million dollars to the implementation of the Special Agro-Industrial Processing Zones (SAPZ) Programme in Nigeria as of March 31.
The bank said the programme had recorded a commitment rate of 41 per cent and a disbursement rate of 12 per cent, amounting to 25 million dollars.
Dr Orison Amu, Implementation Support Manager, Nigeria Country Department, AfDB, disclosed this on Wednesday in Abuja at the Mid-Term Review Meeting of the SAPZ Programme.
Represented by Mr Bernard Onzima, SAPZ Nigeria Task Manager, Amu said the commitment rate was projected to rise to 70 per cent, while disbursement was expected to reach 35 per cent by the end of 2026.
He said the SAPZ Programme was one of the bank’s flagship initiatives aimed at transforming agriculture through agro-industrial development.
According to him, the programme clusters agro-processing activities around areas of high agricultural potential to drive production, aggregation, processing and distribution within designated geographic zones supported by modern infrastructure.
“The bank approved the Nigeria SAPZ Programme Phase I in December 2021. However, it only became effective in March 2023, while conditions precedent to first disbursement were met in August 2023, about 20 months after approval,” he said.
Amu said the zones were designed to de-risk investment in agricultural value chains and create synergies among farmers, processors and traders.
He said the programme was expected to enhance productivity, promote import substitution, increase employment, reduce post-harvest losses and boost value addition across Africa’s food systems.
He added that the initiative aligned with AfDB’s development priorities, particularly efforts to harness Africa’s demographic potential and build climate-resilient infrastructure for economic growth and structural transformation.
According to him, the programme also supports Nigeria’s Agenda 2050 by strengthening value-chain linkages, promoting local sourcing and value addition, and encouraging private-sector investment and technology adoption.
Also speaking, the Country Director of the International Fund for Agricultural Development (IFAD), Ms Dede Ekoue, said the organisation had approved an additional 50 million dollars for SAPZ implementation, complementing an earlier 50 million dollars already signed.
Represented by Mr Isaac Mensah, Programme Officer, IFAD Country Office, Nigeria, West and Central Africa Division, Ekoue said IFAD remained committed to supporting investments capable of unlocking opportunities for smallholder farmers.
