By Omotunde Alawode
•Members of staff of GACON cutting the anniversary cake
In the evolving landscape of Nigeria’s non-oil export sector, the Gum Arabic Company Nigeria Limited (GACON) stands out as a beacon of resilience and innovation. Under the leadership of the group managing director, Mrs. Adaku Chidume-Okoro, GACON has made significant strides in contributing to the Nigerian economy, particularly with agricultural exports. Its journey underscores the importance of stability, production and community empowerment in navigating the challenges and opportunities of the sector.
One of the foremost challenges facing non-oil exporters in Nigeria is the fluctuation of the naira against the dollar. Despite government efforts to stabilize the exchange rate, volatility remains a persistent issue. During GACON’s 25th anniversary celebration recently, Chidume-Okoro emphasized the critical need for a stable exchange rate. She explained that unpredictable fluctuations make it difficult for businesses to plan and budget effectively as sudden changes could lead to significant financial losses.
For companies like GACON, stability is essential. A fixed exchange rate, even if high, allows for more reliable financial planning. The current system’s unpredictability creates a precarious environment where businesses might sign contracts at high rates, only to face reduced returns, if the rate suddenly drops. This instability not only affects profitability but also undermines the confidence of international partners, complicating contract negotiations and financial forecasting.
Chidume-Okoro believes that addressing the exchange rate issue fundamentally requires boosting domestic production. Nigeria’s economy has long been more consumption-driven than production-oriented, leading to a trade imbalance that pressures the naira. By increasing production, especially in agriculture, Nigeria can earn more foreign exchange and improve its trade balance.
GACON’s operations span the entire agricultural value chain. From sourcing raw materials to processing and exporting, the company has built a robust operation that not only supports the economy but also empowers local communities. This holistic approach ensures that GACON contributes to national economic goals and supports sustainable development at the grassroots level.
Beyond economic contributions, GACON is committed to social responsibility, particularly in empowering women and small-scale farmers. Chidume-Okoro’s vision includes providing essential support to the poorest farmers in the communities where GACON operates. This support includes seedlings, fertilizers and microcredit, helping farmers increase their productivity and incomes.
GACON’s empowerment programmes also extend to community development initiatives such as drilling boreholes for water, providing healthcare and employing local labour in their processing plants. This multifaceted approach ensures that the benefits of GACON’s operations are widespread, touching many aspects of community life.
Chidume-Okoro’s leadership is notable not only for her business acumen but also for her advocacy for women’s empowerment. She takes pride in the unique strengths that women bring to the table, emphasizing that women, equipped with refined capabilities by nature, can excel in any field. This belief is reflected in GACON’s workforce, where women hold significant roles, including in operations management.
Her journey as a leader in a male-dominated industry serves as an inspiration. By fostering an environment where women can thrive, Chidume-Okoro is challenging stereotypes and setting standards for what women can achieve in business. Her recognition as Nigeria’s number one woman exporter by a former President underscores her impact and the respect she commands in the industry.
GACON’s success is also attributed to its commitment to technological advancement and continuous training. Operating in the international market requires staying up-to-date with global standards and practices. GACON invests in technology and training to ensure that its workforce can compete globally. This includes mirroring the technological systems of international partners to maintain seamless operations and meet customer expectations.
The company organizes regular training sessions for its employees, focusing on skilling and upskilling to adapt to new norms and technologies. This investment in human capital ensures that GACON remains competitive and capable of meeting the demands of the international market.
Government incentives have played a crucial role in supporting GACON’s operations. Export proceeds are tax-exempt and the company benefits from the Export Expansion Grant, which provides financial support based on annual turnover. These incentives are designed to encourage more businesses to enter the export market and contribute to the economy.
Despite the challenges, Chidume-Okoro is optimistic about the future. GACON has set ambitious targets, aiming to achieve a turnover of $10 million in the next two years. This goal reflects the company’s growth trajectory and its potential to significantly boost Nigeria’s non-oil exports.
The importance of non-oil exports to Nigeria’s economy cannot be overstated. With oil revenues dwindling, the government has been urging diversification and companies like GACON are leading the way. The non-oil export sector, particularly agriculture, offers a sustainable path for economic growth and development.
Agriculture encompasses a wide value chain that includes farming, aggregation, logistics, processing, and exporting. Each link in this chain offers opportunities for business and employment. Chidume-Okoro believes that young people should see the potential in agriculture and engage in various roles within the value chain. This shift could help address unemployment and contribute to the country’s economic stability.
GACON’s journey over the past 25 years is a testament to the resilience and potential of Nigeria’s non-oil export sector. Under the leadership of Chidume-Okoro, the company has navigated challenges, seized opportunities and made a substantial impact on the economy and local communities. By focusing on production, empowering women, integrating technology, and leveraging government incentives, GACON has set a benchmark for what can be achieved in the non-oil export sector.
As Nigeria continues to strive for economic diversification, the lessons from GACON’s experience are invaluable. Stability in exchange rates, increased production and sustained support for local communities are crucial for the sector’s growth. With the right policies and continued investment in production, Nigeria can harness the full potential of its non-oil exports and achieve a more balanced and resilient economy.