Agric growth slows to 1.4% in Q2 on worsening insecurity

Nigeria’s agricultural growth slowed to 1.4% in Q2 2024 due to worsening insecurity and rising production costs, down from 1.5% year-on-year. Insecurity has forced many farmers to abandon their land, driving food inflation. The sector contributed 22.61% to GDP, lower than 23.01% in Q2 2023. Crop production accounted for 87.48% of the sector’s value. Rising costs of inputs and labor are shrinking farming areas, further increasing food prices. Over 31.8 million Nigerians face acute food insecurity, exacerbated by insecurity, surging food costs, and the removal of gasoline subsidies.
Source: BusinessDay

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The slowdown in Nigeria’s agricultural growth to 1.4% in Q2 2024 reflects the growing challenges posed by insecurity and rising production costs. This is alarming, as agriculture remains one of the country’s top contributors to GDP, yet its potential is being stifled by external pressures. Insecurity, as highlighted, forces many farmers to abandon their farms or resort to expensive private security services, which further drives up production costs. This not only limits output but also heightens food inflation, placing more Nigerians in a state of food insecurity.
The 0.09% decline from the corresponding period in 2023 might seem marginal, but it reveals deeper structural issues within the sector. Rising costs for inputs, labor, and farm operations are forcing farmers to scale back production, which directly affects the supply chain, from crop production to processing and distribution. If left unchecked, this trend could further discourage both domestic and foreign investments in agriculture, which is critical for long-term growth.
To foster growth, it’s crucial for the government and private stakeholders to invest in security solutions, subsidize farming inputs, and create policies that reduce operational costs. These efforts will enhance the value chain and stabilize food prices, promoting a sustainable agricultural economy.