Agric investment surges 226% in three months amid worsening insecurity

Nigeria’s agricultural FDI surged by 226.45% in Q1 2024, reaching $15.80 million, despite rising insecurity. This represents a 3,661.90% increase from Q4 2023. Experts attribute the spike to foreign investors capitalizing on Nigeria’s food supply gap. While total capital importation grew by 198.06%, the agricultural sector’s GDP growth slowed to 0.18%, and the fishing subsector attracted no investment.
Source: BusinessDay

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Nigeria’s agricultural Foreign Direct Investment (FDI) surged by 226.45% in Q1 2024, reaching $15.80 million, up from $4.84 million in Q1 2023. This sharp increase, despite growing insecurity, highlights the sector’s potential, driven by a food supply gap that foreign investors see as a profitable opportunity. With a population of 200 million, demand for food continues to attract global stakeholders, even as the sector’s GDP growth slowed to 0.18%. The rising FDI reflects confidence in Nigeria’s agribusiness potential, though addressing insecurity is crucial for sustaining and expanding this interest. For local agribusinesses, this trend emphasizes the need for strategic positioning to attract investment and drive sectoral growth.