AfDB Calls For Enhanced Local Production As Nigeria Spent $10bn On Food Imports In 2023

The African Development Bank (AfDB), through its Senior Special Adviser to the President on Industrialisation, Prof. Banji Oyelaran-Oyeyinka, underscored the critical need for Nigeria to address its $10 billion food import bill. Speaking at the Agriculture Summit Africa 2024, he highlighted Nigeria’s capacity for local food production given its vast arable land and water resources, yet lamented the country’s dependence on imports for essentials like maize, wheat, and rice. Oyelaran-Oyeyinka attributed food scarcity to inadequate production capabilities and political barriers, stressing the urgency for a Nigerian-led Green Revolution. He also noted that over 60% of Nigerians’ income is spent on food, a stark indicator of food insecurity.

Supporting the call for enhanced local production, Sterling Bank’s MD, Abubakar Suleiman, emphasized the role of accessible financing to empower farmers amid Nigeria’s security challenges. Sterling Bank, alongside the Mastercard Foundation, has allocated $33 million to fund women in agriculture, marking a substantial commitment to expanding agricultural productivity. The ASA summit provided a collaborative platform for government, private sector, and academic stakeholders to address barriers to self-sufficiency, while Sterling Bank highlighted the direct impact of food security on national stability and economic prosperity.
Source- Arise

Expert Review for Agri-Food Stakeholders
Prof. Oyelaran-Oyeyinka’s advocacy for reducing Nigeria’s food import bill is both timely and urgent, especially as the country grapples with economic pressures. The emphasis on enhancing local production aligns closely with Nigeria’s vast potential; 84 million hectares of arable land, with only 40% currently cultivated, indicate significant untapped opportunities. Shifting from reliance on imported grains could not only strengthen the economy but also improve food accessibility, reduce inflation on food items, and enhance the nation’s food resilience. However, realizing this potential requires a blend of political will, infrastructure investment, and policy reform to stabilize the production environment.

Sterling Bank’s commitment to supporting farmers financially, particularly women in agriculture, represents a promising approach to overcoming barriers faced by many local producers. Initiatives like the “Sway Action” program showcase how targeted financing at single-digit interest rates can enable more inclusive and resilient food systems by ensuring that underserved groups, including women and youth, can actively contribute to Nigeria’s agricultural transformation.

The 2024 ASA summit’s theme, “From Scarcity to Security,” serves as a reminder that food security underpins national security. Reducing the high percentage of individual income spent on food would have a profound socioeconomic impact, allowing households to allocate resources toward education, healthcare, and economic activities. Expanding access to funding for both established and emerging farmers, alongside efforts to resolve security issues impacting agricultural zones, is crucial.

Key Recommendations:

Policy Reform: Establish policies that provide production incentives, reduce import reliance, and create a favorable investment climate for agribusinesses.
Increased Financing for Farmers: Expand accessible financing options to include more farmers, especially smallholders, women, and youth, to improve productivity across agricultural value chains.
Collaboration for Knowledge Sharing: Continuous collaboration across government, private sector, and NGOs to implement practical solutions, share best practices, and improve post-harvest infrastructure.
Focus on Green Revolution Principles: Invest in technology, mechanization, and research to boost local production, aligning with the concept of a Nigerian Green Revolution as a pathway to achieving food self-sufficiency.

By addressing both immediate needs and establishing long-term frameworks for agricultural transformation, Nigeria can not only reduce its import bill but also build a sustainable foundation for food security.