Sowing The Seeds For Sustained Growth In The Agri Sector

Agriculture & Industry

Sowing The Seeds For Sustained Growth In The Agri Sector

Nigeria returns to its fields to unlock its potential to become Africa’s agricultural powerhouse, eliminating its high import bill, providing employment for all and generating national income through complex value chains.

Nigeria’s economy has always been sustained by, and rooted in, agriculture. Following its independence in 1960, agriculture was the mainstay of the economy, accounting for 57% of national GDP and responsible for 64.5% of export earnings, providing the nation with its main source of employment, as well as developing further opportunities and possibilities for the nation. Indeed, with 84 million hectares of arable land and favourable climes for a variety of crops, Nigeria was one of world’s most promising agricultural producers. Agriculturally self-sufficient and food secure, it was the world’s largest groundnut and palm oil producer, the second largest exporter of cocoa and an important producer of cotton. By 1965, 70% of the national labour force was employed within the agricultural sector and northern cities, such as Kano, had become regional economic hubs, while national development plans focused upon the modernisation of agricultural methods through farm settlements, co-operative plantations, supply of improved farm implements and expanding agriculture were set up.

Following the oil boom in the 1970s, however, the agricultural sector lost its drive as Nigeria’s focus shifted to petroleum exploration and exportation. Between 1975-1979 agricultural input to the national GDP dropped drastically to 25%, with the consequence of a decline in the exportation of crops, such as palm oil, peanuts and cotton; suddenly Nigeria was forced to become a food-importing country. By 1975, Nigeria was forced to import basic commodities, such as rice and cassava for domestic consumption, spending US$11 billion a year on wheat, rice, sugar and fish imports alone.

Since the 1960s, a number of agricultural research institutes have been established in the country and various governmental programmes implemented such as: the National Accelerated Food Production Programme (NAFPP) launched in 1972 and the 1980 Green Revolution. The World Bank-funded Agricultural Development Projects (ADP) laid down the foundation for a returned focus upon agriculture and the nation’s reliance upon small scale farmers for increased food production, putting into action the value chain approach, from field to mill to table. In 1982, in the first attempt to make a return to building up industrial crop production, the government disbanded produce marketing boards, motivating farmers to cultivate tree crops, while federal and state governments set up oil palm, rubber and cacao plantations. From 2011-2014, the Agricultural Transformation Agenda grew national food production by 21 million metric tonnes and led to a reduction in food imports while creating 3.5 million new jobs in agriculture and food-related industries. An Electronic Wallet System was set up so that five million smallholder farmers were able to receive subsidised electronic

“Agriculture is the future. Agriculture is providing jobs for millions of our citizens and we are doing well towards the attainment of food security and jobs.” President Muhammadu Buhari

vouchers for seeds and fertilisers via their mobile phones, while seed and fertiliser companies began to sell direct to farmers and banks loaned money to companies and agro dealers.

With Buhari’s arrival on the political scene, a new comprehensive agriculture policy, the Agriculture Promotion Policy (APP), was drawn up in line with his economic diversification plan and vision for self-sufficiency and the momentum for agricultural development really picked up. Vice President Yemi Osinbajo stated: “If you had to sum up our vision for the Nigerian economy in a few words, these would suffice. Grow what we eat, produce what we consume.” Focusing upon the need to create an enabling environment, policies and incentives for a private-led transformation was key to promoting self- sufficiency in food production as well as going one step further in order to increase foreign exchange earnings through agriculture exports. Five agricultural development initiatives were set up: the Anchor Borrowers Programme (ABP), the Presidential Fertiliser Initiative (PFI), the Youth Lab, the Presidential Economic Diversification Initiative (PEDI) and the Food Security Council, providing farmers with financial support and improving upon the supply of specialised fertilisers and high-yielding seeds. President Muhammadu Buhari appealed to Nigerian youths to embrace the ongoing agricultural opportunities as a means to improving their standards of living, and focused upon putting an end to food importation, particularly for rice and cassava. Agricultural policy is taking place across the whole spectrum of the agriculture’s value chain, and private sector investments in farmer companies are transforming the sector, for example, Dangote Group’s US$20 million tomato processing factory built in Kano. Agricultural equipment manufacturers and suppliers are also currently highly operative in the Nigerian market. In accordance with Nigeria’s Ministry of Agriculture, in May 2018, John Deere supplied 10,000 tractors managed by Hello Tractor telematic devices and supported by technology advice from Mustard IT. Multinational food processing companies are also establishing their own commercial farms or empowering small farmers through out-grower programmes in Nigeria.

Over the past five years, the agricultural sector has begun to grow once more, pulling the nation out of recession and contributing an average of 24% to GDP. Today, at least a third of the Nigerian labour-force earn their livelihood from agricultural production, with small-scale subsistence farmers dominating industrial crop production such as yams, corn, coco-yams, cow-peas, beans, sweet potatoes, millet, plantains, bananas, rice, sorghum, and a variety of fruits and vegetables, with leading cash crops cocoa, citrus, cotton, groundnuts (peanuts), palm oil, palm kernel, benniseed and rubber. Nigeria is currently the largest producer of cassava in the world, through private sector investment in large-scale cassava processing plants it produces about 50 million metric tonnes annually from a cultivated area of about 3.7 million hectares and currently accounts for 20% of global production and 46% of West Africa’s. Through a cassava flour substitution policy, Nigeria has gone on to reduce its US$4 billion wheat import cost, replacing wheat flour with high-quality, homegrown cassava flour in bread, as well as producing starch that can be used in sweeteners to reduce sugar imports.

A new dawn is rising upon Nigeria’s agricultural sector as a business haven for investment, Nigeria taps into its golden days of self-sufficiency, while implementing modern farming through digital agriculture, to project itself towards a thriving, fertile and flourishing future.