Thus far, the agricultural sector seems to have recovered from the impact of COVID-19 pandemic, African Swine Fever (ASF), and the ongoing Ukraine-Russia war that are still dealing with food systems across the world.
These global crises have disrupted food systems worldwide, leading to increased food insecurity and economic instability. Despite this, there are signs of recovery within the sector.
At the beginning of the year, At the beginning of the year, President Tinubu reassured the public that the government would leave no stone unturned in tackling the impacts of these crises. These include mitigating food insecurity, promoting agricultural development, and ensuring economic stability.
The government’s promise of long-term plans for the commodity industry and agricultural infrastructure aims to move the sector toward food security, which would reduce dependency on foreign imports and strengthen local food production capabilities.
However, the rice industry, in particular, has faced notable challenges. The country has been struggling to reduce the high cost of rice, which continues to be a significant burden for consumers. The rising prices of rice, a staple food, are a direct result of factors such as inadequate local production, the impact of floods, and other infrastructural gaps in the sector.
One of the most severe setbacks to agricultural productivity this year has been the escalation of flooding, which has affected 29 states across Nigeria. This natural disaster has displaced thousands of people, destroyed large areas of farmland, and resulted in numerous fatalities. As of early September, over 2.5 million people were impacted by the floods, with approximately 200,000 people displaced. This destruction has exacerbated food shortages and made it even more difficult for the agricultural sector to recover fully.
While the agricultural sector has shown signs of resilience, these challenges highlight the urgent need for continued investment in infrastructure, climate adaptation strategies, and improved disaster management to ensure long-term food security and stability in the country.
At the beginning of the year, President Bola Tinubu reassured no stone will be left unturned to lessen, if not totally eradicate, in the bid to address these with devastating impacts rippling out beyond borders and contributing towards economic instability. To substantiate this campaign, the Federal Government promised a long-term vision of commodity industry and agricultural infrastructure development which will usher the sector towards food sovereignty.
Among the Federal Government’s interventions include provision of quality, certified seeds, farm machinery and equipment, financial support, and trainings to keep the food production chain going.
Following issues that have stunted the growth of the country’s rice industry with consumers still paying high prices of rice.
Nigeria has become a hot spot for extreme weather-related events. The country regularly suffers from events such as floods and concurrent heat waves and droughts that have caused severe farming crises.
Farmers’ incomes and financial strength continue to be tested. Adding to a series of poor harvests, the crop season coincided with commodity price shocks and rising inflation, driving increased prices of agricultural inputs such as fertiliser and energy.
The sector recorded escalating floods which affected 29 states, displacing thousands, destroying farmland and claiming lives. As of early September, more than 2.5 million people have been impacted, with around 200 000 displaced.
The flood crisis in Northern Nigeria deepened, with rivers continuing to swell and dams nearing full capacity, intensifying the threat to local communities. The National Emergency Management Agency (NEMA) issued urgent warnings for imminent flooding in the Northeast and West states. States which faced the highest risk include Borno, Bauchi, Bayelsa, Enugu, Jigawa, Kano, Kebbi, Kogi, Niger, Sokoto, Yobe, and Zamfara.
The rains and swollen rivers exacerbated the flooding situation, leading to widespread damage to infrastructure, homes, and farmlands. Many affected areas are still grappling with displacement, lack of basic necessities, and the loss of livelihoods.
With the risk of further flooding looming due to the current conditions, NEMA has called for immediate preparedness and response efforts to mitigate the impact on the population.
A cheering news is that the e National Agricultural Development Fund (NADF), in collaboration with the National Agricultural Seed Council, is taking steps to boost the agricultural sector by focusing on six priority crops . NADF aims to provide financial support to smallholder farmers, helping them access critical resources such as seeds, modern technologies, and infrastructure improvements. However, stakeholders have raised concerns about ensuring that this funding is effectively distributed and accessible to those who need it most.
One of the key challenges, recent researches have highlighted is the slow adoption of new crop varieties. Many farmers are still using varieties that are more than 10 years old, which limits their ability to improve yields and adapt to changing climate conditions. Modernisation at the field level, including the adoption of newer varieties and technological innovations, stakeholders believe is crucial for improving agricultural productivity and resilience to climate change.
Also that the effectiveness of NADF’s support in addressing these issues will largely depend on how well it can ensure equitable access to financing, while promoting the use of modern agricultural practices and seed varieties. For stakeholders,engaging farmers, strengthening education on new technologies, and ensuring infrastructure improvements at the local level will be key to the success of this initiative.
The Federal Ministry of Agriculture and Food Security is responsible for implementing government policies in the agricultural sector and overseeing the activities of various government agencies established to achieve food security.
Ongoing reforms, public-private partnerships, and digital innovations offer promising avenues for growth in the sector. The Minister for Agriculture and Food Security, Abubakar Kyari said there are “good prospects” for the current agricultural campaign.
He emphasised the country’s focus on restructuring the agricultural sector. The minster has called on producers to increase cultivation of key staples.
The livestock sector is a critical contributor to Nigeria’s economy, providing jobs for millions of people, particularly in rural areas.
The creation of the Ministry of Livestock Development in July this year signals the government’s recognition of the sector’s growing importance and the need for focused, targeted policies to address its challenges.
The Ministry of Livestock Development will play a significant role in the country’s agricultural sector, focusing specifically on the livestock sub-sector. This includes the promotion of animal husbandry, the development of livestock value chains, and addressing issues related to animal health, productivity, and welfare. A major initiative supporting these efforts is the National Livestock Identification and Traceability System (NLITS), which is expected to help track livestock movements and improve disease control and surveillance. This system will be crucial for managing the sector’s biosecurity risks and enhancing its sustainability.
Additionally, the ministry will likely oversee policies to improve the breeding, feeding, and management practices across the sector. By improving productivity and animal health, the livestock sector could become more competitive, contributing to food security, rural development, and economic diversification. The focus on the livestock sub-sector aligns with the broader vision of modernizing Nigerian agriculture, making it more resilient to both environmental and market shocks.
Recently, the Federal Government reviewed the annual Agricultural Performance Survey Report as part of efforts to tackle food price inflation. The report, presented by the National Agricultural Extension and Research Liaison Services (NAERLS) in Abuja, assesses agricultural sector performance during the wet season and forecasts likely production outputs. It also identifies constraints that hinder increased agricultural productivity.
During the presentation, the Hon Minister of State for the Federal Ministry of Agriculture and Food Security, Sen. Abdullahi Sabi Aliyu, emphasised the core mandate of NAERLS. This includes advancing agriculture extension research and services, conducting agricultural performance assessments, and building the capacity of skilled workers for effective extension services.
The Minister emphasised the importance of extending the survey to cover the dry season in order to effectively tackle food price inflation. He underscored President Bola Ahmed Tinubu’s dedication to ensuring that no citizen goes to bed hungry.
He reiterated President Bola Ahmed Tinubu’s commitment to ensuring that no one goes to bed hungry, stressing that the Ministry is focused on ramping up agricultural production continuously.
The African agrifoodtech sector showed signs of mild growth and recovery in 2024, with startups raising $145 million in the first half of the year,according to Africa AgriFoodTech Investment Report 2024. This marks a 1.6 per cent year-over-year increase compared to the first half of 2023. However, Africa’s share of the global agrifoodtech investment remains small, accounting for just 1.6 per cent of the global total in 2023. This follows a difficult year in 2023, when African agrifoodtech investment declined sharply by 62 per cent , falling to only $275 million.
Kenya has emerged as the leading African hub for agrifoodtech investment in 2024, securing $83 million across 19 deals, which represents 53 per cent of the continent’s total funding. Egypt has significantly improved its position, rising three places from 2023, and now accounts for 15 per cent of the continent’s agrifoodtech investment. Nigeria, which has historically been a strong player in the sector, holds third place, with 10 per cent of the investment.
Looking at Nigeria specifically, the agri-tech startup landscape is notably dominated by ventures in e-commerce and fintech for farmers.
As of 2022, according to Statista,an international business intelligence firm, 35 per cent of the 23 agri-tech startups surveyed in Nigeria were involved in e-commerce, while around 30 per cent focused on fintech solutions designed for farmers. The majority of these startups are concentrated in Lagos, which serves as the key hub for Nigeria’s agri-tech ecosystem.
This year, the Lagos State Government has made significant strides in boosting food production and ensuring food security. The State Government empowered 26 agriprenuers with a N100 million grant .
The initiative aims to support and develop the agricultural sector within the state. The state’s Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, emphasised the importance of involving more young people in agriculture, encouraging them to become key contributors to the sector.
She highlighted the achievements of the young agricultural entrepreneurs, noting that they had not waited for opportunities from the government but had instead looked inward and found inspiration to succeed. She commended them for creating enterprises they could be proud of and reaffirmed the state’s pride in partnering with them.
“We would like to appreciate everyone for being here and especially our jurors, they did a fantastic job
helping us with the selection process, from 316 business entries and bringing it down to 26 finalists.
“We are here to celebrate these young agriculture entrepreneurs, who have not waited for the
government to give them opportunities but have looked within themselves and other for inspiration.
“They have made of themselves and of their enterprises something to be proud of and we are proud to
be in association with them.”
This year’s actualisation of the general agricultural census marks a significant step toward strengthening the country’s agricultural sector and addressing food security challenges. The census is designed to provide updated, comprehensive data that can inform better decision-making, policy development, and planning in the agriculture sector. In addition to crop production, the census will focus on crucial aspects such as livestock statistics, stables, breeding, and the overall agricultural landscape. This will help identify trends, challenges, and opportunities that can guide more effective policies, investments, and support systems for farmers and stakeholders.
With the census’s comprehensive nature, it will likely contribute to achieving the nation’s goals for food security, rural development, and agricultural growth, which are critical in light of increasing demand for food, climate change, and the need for job creation in rural areas.
Nigeria’s agricultural sector holds substantial untapped potential, with an estimated $3.1 billion in unrealised agro-commodity exports, according to data provided by the International Trade Centre’s (ITC) Export Potential Map.
Despite this, the sector has shown impressive growth in recent months. In Q1 of this year, agricultural exports surged to N1.04 trillion, marking a remarkable 123% increase from the previous quarter and a staggering 270 per cent rise compared to Q1 of the previous year, according to the National Bureau of Statistics (NBS).
However, in Q2, exports slightly dipped to ₦973.69 billion, reflecting a 5.93 per cent decline from the previous quarter. Despite this drop, it still represented a 246.67 per cent increase compared to ₦280.87 billion in Q2 of last year.
Additionally, between January and November of this year, Nigeria exported 27,595 containers of non-oil products, as reported by the Nigeria Customs Service.
Experts, including the Director General of the African Centre for Supply, Dr. Obiora Madu, have highlighted the necessity for a robust economic performance and a comprehensive policy framework. Dr. Madu asserted that these strategies are vital for sustaining and diversifying Nigeria’s export base, which is essential for long-term economic growth and development.
The agricultural sector in Nigeria is ripe with potential for both local and foreign investors, given its variety of products and increasing market demand.
As one of Africa’s top soybean producers, Nigeria is experiencing a surge in global demand, particularly from Europe, Asia, and the Middle East, driven by the rising popularity of plant-based protein options, making soybeans a promising export product for both established and emerging businesses. Furthermore, sesame seeds present significant export opportunities in Japan, China, and Europe, while the high demand for cashew nuts from the United States, Europe, and Asia offers an attractive avenue for export.
The Federal government is making concerted efforts to promote investment in livestock farming, with a particular emphasis on cattle, poultry, and aquaculture. The increasing demand for animal protein presents significant opportunities in livestock production, as well as in genetic advancements aimed at improving yield, disease resistance, and overall productivity. As the agricultural sector continues to grow, there exists a considerable opportunity for investment in modern agricultural machinery. Investors, both local and international, can capitalise on these prospect by concentrating on export-oriented products, cutting-edge farming technologies, and streamlined supply chain solutions.
Also, the Federal government recognises that attracting foreign direct investment (FDI) is crucial for overcoming various economic challenges and has expressed its commitment to fostering a more favorable environment for FDI. For stakeholders, there is need to remove barriers such as excessive bureaucracy, insufficient transparency, and inconsistent enforcement of laws and regulations. Investors seek several regulatory reforms essential to enhance the investment climate and enable the economy to achieve its full potential.
