Nigeria: The agricultural imperative

Nigeria’s agricultural sector is in a crisis exacerbated by decades of neglect, underfunding, and recent economic and political developments. Agriculture, contributing significantly to GDP, has seen its value decline from nearly 40% of GDP 25 years ago to 17.22% in Q1 2024. Despite its economic importance, the sector faces challenges such as poor land tenure, low irrigation levels, climate change, and limited financing. Federal budget allocation to agriculture remains low, at around 1% of the total budget. Urgent short-term solutions and a strategic long-term repositioning are needed to address these issues and unlock the sector’s potential. Source: Business Day

Our Review
The Nigerian agricultural sector’s crisis, exacerbated by economic and political instability, underlines decades of neglect and underfunding. Despite contributing significantly to GDP, the sector faces myriad challenges: poor land tenure systems, low irrigation farming, climate change, and inadequate technology. The persistent food inflation, now at 40.66%, highlights the urgent need for comprehensive intervention.
The government’s budgetary allocation to agriculture remains insufficient, significantly below the 10% Maputo Declaration target. Immediate solutions include limited food importation and coordinated federal and state government efforts to address shortfalls. However, medium- to long-term strategies are essential. These should focus on increasing financing, providing attractive incentives for private sector investment, and creating an enabling environment for sustainable growth.
Repositioning agriculture strategically can generate jobs, boost incomes, ensure food security, and transform lives. Enhanced agricultural practices, better market access, and modern technology adoption can drive growth across the value chain. Policymakers must prioritize agriculture, recognizing its potential to combat poverty and achieve sustainable development.
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