Policy Frameworks for Sustainable Growth and Development of Gum Arabic Value Chain in Nigeria's Sudano-Sahelian Region

Bashir Sanyinna Sani, Bashir Sanyinna Sadiq, Salihu Musa and Alfred Ehizua Ehien

Problems of World Agriculture / Problemy Rolnictwa Światowego, 2026, vol. 26, issue 3

Abstract: The gum arabic value chain in Nigeria's Sudano-Sahelian region holds substantial potential for economic transformation, yet this potential remains largely unrealised due to inequitable value distribution, weak institutional frameworks, and inadequate policy implementation. This study examined the performance and distribution system of the gum arabic value chain and identified policy frameworks necessary to promote its growth and development. Data were collected from 508 stakeholders across Borno and Yobe states using a structured questionnaire complemented with an interview schedule and analyzed using Structural Equation Modelling. Noteworthy, a multi-stage sampling technique was used to generate the representative sample size for the study, while an easy-cost route approach applied to the data collection lasted for the period of October-December 2025. The findings revealed that the export chain generated the highest final value of ₦18,000/kg, yet Nigerian producers captured only 13%, while international processors appropriated 66% of total value addition. The local industrial chain demonstrated improved equity with producers receiving 25% of final value, while the traditional market chain provided the highest proportional share at 33.96%. Institutional frameworks demonstrated the strongest influence on value chain growth (β = 0.399, p < 0.001), followed by resources (β = 0.321, p < 0.001) and power relations (β = 0.366, p < 0.001). The study concludes that strengthening institutional capacity, investing in local processing infrastructure, and reforming policy frameworks are essential for capturing value that currently accrues to international buyers. Recommendations include establishing functional cooperatives, enhancing stakeholder coordination, addressing security challenges in key producing states, and fostering public-private partnerships to generate over $476 million as projected by the Raw Materials Research and Development Council. This study contributes empirical evidence for policy formulation and sustainable value chain development in fragile ecological zones.

Keywords: Agribusiness; Crop Production/Industries; Financial Economics; Institutional and Behavioral Economics; International Relations/Trade; Sustainability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:polpwa:415936

DOI: 10.22004/ag.econ.415936

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