Why commercial agribusinesses resort to backward integration – Gov. Sule

Due to foreign exchange challenges, Nigerian agribusiness investors are focusing on backward integration. Governor Abdullahi Sule emphasized that implementing the Framework for Responsible Investment in Land-Intensive Agriculture (FRILIA) will attract private investments, benefiting both investors and communities. FRILIA aligns with international best practices and helps address land acquisition, farmer-herder conflicts, and investment challenges. Governor Sule inaugurated the FRILIA steering and technical committees to oversee its implementation, ensuring transparency and support for large-scale agribusiness projects, including new rice and sugar mills in Nasarawa State.   Source: BusinessDay

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The inauguration of the Framework for Responsible Investment in Land-Intensive Agriculture (FRILIA) by the Nasarawa State Government is a crucial step in revitalizing Nigeria’s agribusiness sector. As agribusiness investors shift towards backward integration due to foreign exchange challenges, the framework ensures that land acquisition practices align with international best standards. This will attract large-scale private investments, ensuring mutual benefits for investors and host communities, while also mitigating conflicts such as the herder-farmer crisis.
By promoting transparency in land acquisition and integrating sustainable agricultural practices, FRILIA enhances the attractiveness of Nasarawa for private investment. This initiative strengthens the value chain by supporting land-intensive crops such as sugar and rice, enabling agribusinesses to optimize production locally rather than relying on costly imports. It also fosters collaboration between stakeholders, ensuring equitable development for both investors and local communities.
The broader impact on Nigeria’s agricultural value chain will include improved food production, increased job creation, and stronger economic growth. FRILIA also provides critical insights for informed decision-making by public and private sector players, supporting the government’s commitment to food security and poverty alleviation.