Transforming agriculture in Nigeria requires multifaceted approach – Adeniyi
At the 2024 Stanbic IBTC Agribusiness Breakfast Summit, Wole Adeniyi, CEO of Stanbic IBTC Bank, emphasized that transforming Nigeria’s agriculture sector requires a multifaceted strategy. He highlighted a $182 billion financing gap in the sector, advocating for stronger partnerships among stakeholders to leverage technology and innovation, particularly in agro-processing. The event, themed “Driving Economic Transformation through Agro-processing: Building a Sustainable Future,” emphasized the need for increased value addition in agriculture to boost Nigeria’s Gross Domestic Product (GDP), create jobs, and reduce post-harvest losses.
Adeniyi pointed to a critical gap in Nigeria’s tomato production, with annual demand at 2.2 million tonnes, but only 1.5 million tonnes are produced, mainly due to losses during post-harvest activities. To bridge the financing and infrastructure gaps, Adeniyi urged improvements in infrastructure, access to finance, and capacity building, noting Stanbic IBTC Bank’s ongoing support through financing and trade partnerships.
The summit also featured Nigeria’s Minister of Agriculture and Food Security, Sen. Abubakar Kyari, who reiterated the government’s commitment to transforming agriculture into a profitable business that can drive sustainable economic growth. Kyari underscored that the summit’s theme aligns with President Bola Tinubu’s declaration of a state of emergency on food security.
Source: Vanguard
Expert Review for Agri-Food Stakeholders:
This discussion at the Stanbic IBTC Agribusiness Breakfast Summit is crucial for agri-food stakeholders looking to make informed decisions about Nigeria’s agricultural future. The emphasis on agro-processing as a key to unlocking the agricultural sector’s potential cannot be overstated. For Nigeria, the transition from raw product exportation to agro-industrial processing is essential for reducing post-harvest losses, increasing profitability, and bolstering food security. Given the $182 billion financing gap in agriculture, it is vital for financial institutions, policymakers, and agribusiness investors to collaborate and mobilize resources effectively.
Stakeholders in the agro-processing sector must focus on building value chains that enhance productivity while addressing inefficiencies like post-harvest losses. For example, the tomato value chain represents a key opportunity. Bridging the gap between production and demand through investments in processing infrastructure, cold storage, and supply chain innovations can drastically improve profitability and reduce food wastage. Additionally, the focus on capacity building and access to finance aligns with the government’s broader strategy to foster resilience in agriculture.
Key takeaways for agribusiness stakeholders include the importance of financing for modernizing agriculture, the need for technological adoption, and the value of building strong public-private partnerships. Agribusiness stakeholders should prioritize investments in agro-processing, not only for immediate profit but also for long-term sustainable development, ensuring Nigeria’s place as a leading agro-industrial hub in Africa.
