There is an urgency to change the fortunes of Nigeria’s exports.However, concerns are raised as to the ability of domestic production systems to meet food security needs and boost exports. DANIEL ESSIET writes on the potential of the agricultural value chain and national economic outlook.
For Nigeria with a population of over 200 million, analysts predict, would export more food than it already does. It’s plausible that the country could increase its food exports given its large population and significant agricultural potential.
As at January 2022, Nigeria’s total yearly exports were below $100 billion. However, the potential for diversifying Nigeria’s export base to include more agricultural products remains significant.
Given Nigeria’s agricultural potential and the global demand for various food products, there is room for growth in the agricultural export sector. Indeed, Nigeria has been a significant exporter of various agricultural products, including cocoa, cashew, sesame, soybeans, and cut flowers. These commodities have played a crucial role in the economy, contributing to export earnings and providing livelihoods for many people involved in the sector. However, Nigeria, like many developing countries, faces challenges in its agricultural sector, which impact its ability to fully capitalise on the potential of these key export products.
However, there have been challenges, which are not unique. The Director-General, Nigeria Agricultural Quarantine Service (NAQS), Dr. Vincent Isegbe, remains optimistic about Nigeria’s potential for growth and productivity, despite facing economic challenges, particularly in the higher-productivity economies of Africa. He believes that Nigeria possesses the human capital to drive growth, transform its value chains, and enhance productivity across various sectors. This optimism likely stems from the country’s large population, natural resources, and the resilience of its people in the face of adversity.
Isegbe’s perspective underscores the importance of leveraging human resources and innovation to overcome economic obstacles and propel Nigeria towards sustainable development. His belief in Nigeria’s potential to fuel growth, shift its value chains, and boost productivity reflects a positive outlook on the country’s capabilities and resources. Nigeria, as one of the most populous countries in Africa with a diverse range of industries and a burgeoning entrepreneurial spirit, indeed possesses a wealth of human capital and talent that can be harnessed for economic development.
The outlook appears promising for him in the near future, buoyed by the Federal Government’s commitment to expanding its export portfolio and fostering stronger trade relationships. His words: “I’ll tell you straight away that the state of the Nigerian agricultural economy is very, very bright. We have the potential. We have 34 million square metres of arable land to farm. We have enough water bodies for irrigation.
“We have the population – it’s over 230 million (by 2013 estimate). And we have that population as a market to buy the agricultural produce that we will produce eventually. And the beauty of it is that we are in the equatorial ecological zone where we don’t have winter, so we can produce all-year round – where other people are having winter we have the opportunity to do dry season farming up North. Where we can produce onions, peppers, chilies, wheat- you know, to supplement what we produce in the rainy season. So, with the advantage of our large water bodies such as rivers and streams, we can actually do dry season farming. This apart, you and I know that no agriculture economy depends on rain fate agriculture. That’s why our potential is high and we can do a lot for this country. It’s just to harness these areas together to ensure that we produce whatever we need and we’re able to export as much as we can.”
Nigeria, as one of the major economies in Africa, has the potential for its economic development. The concept of comparative advantage, which suggests that countries should specialise in producing goods and services where they have a lower opportunity cost, can enhance Nigeria’s economic efficiency and competitiveness on the global stage.
The NAQS chief emphasised the importance of such strategic considerations in reshaping trade growth. By aligning trade policies and practices with Nigeria’s comparative advantages, he was of the opinion that the government could facilitate the expansion of exports, attract foreign investment, and strengthen domestic industries. He indicated that it was crucial for the government and the private sector to complement these strategic considerations with robust infrastructure development. This, according to him, is essential for realising the full potential of Nigeria’s comparative advantage and fostering long-term economic growth and prosperity. Increasing moves by local and international business leaders to build capacities for foodstuffs and agricultural products export,he sees as having profound effects.
Overall, he believes the long-term decision to build capacities for agricultural exports can have significant and far-reaching effects on the economy,
Having served in the industry for a while as a key player, Isegbe believes the agri-food industry is on a sustainable journey and that Nigeria is positioned to take advantage of emerging global opportunities.
Isegbe’s optimism about Nigeria’s potential in the agri-food industry reflects a recognition of the country’s strengths and opportunities, as well as a commitment to driving sustainable growth and development in the sector.
“Indeed, we have the land, and also the people to do the farming. There’s enough water. We have the human capacity.” He is convinced that agriculture will be a real driver for sustainable growth in Nigeria over the next 10–50 years with new markets to buy Nigerian produce. He is convinced agriculture will be a real driver for sustainable growth in Nigeria over the next 10–50 years with new markets to buy Nigerian produce. However, realising this potential will require concerted efforts from various stakeholders, including the government, private sector, farmers, researchers, and international partners. Investments in infrastructure, education, research, and extension services will be crucial for unlocking the full potential of agriculture as a driver for sustainable growth in Nigeria over the next few decades.
The DG has a positive outlook on Nigeria’s export potential, particularly in the agro trade sector. He views the export world as a vast and expanding market for businesses, offering opportunities for growth and development. Also, he sees Nigeria’s agro trade as being strategically important, with agro commodities playing a crucial role.With the government unveiling ambitious plans to enhance sustainable food production for export, the DG believes that this initiative will not only bolster the economy but also address shortages of food supplies globally. This perspective reflects recognition of the potential impact that Nigeria’s agricultural exports can have on both domestic prosperity and international food security.
The challenges facing the agricultural sector are multifaceted, despite the country’s aspirations to become a major player in agro-processing, manufacturing, and assembly. Input costs such as seeds, fertiliser, pesticides, and machinery have been steadily increasing, making it more expensive for farmers to cultivate their land. This puts pressure on farmers’ profitability and can hinder investment in modern agricultural practices.The impact of rising input costs and severe weather have caused the industry and primary producers huge challenges.
He noted: “If you begin to number them, we have identified about 30 prominent challenges in agriculture. One has to do with our research and development. We are unable to have good and standardised seedlings. Seedlings could be seed themselves or vegetative cuttings or semen, in the case of animals and fish. We need to develop a standard seed base, and also a secured gene bank that will preserve these seeds for future generations. Those things are there, but we need them to be coordinated and efficiently improved.”
As the technological frontier moves, he is of the opinion that Nigerian will move with it. According to him, the private sector should partner the government not only accelerate its rate of scientific progress but also higher quality talent development. This sentiment reflects a common perspective that collaborations between the private sector and the government can play a crucial role in accelerating scientific progress and enhancing talent development in the agric sector.
With the United Nations ( UN) estimating that there will be 9.7 billion people on earth in 2050 – an increase of 1.7 billion from 2022, he is bothered that the production system cannot guarantee enough food for future generations to eat. For him, the concern over global food security as the population continues to grow is indeed a significant issue,but that the potential of agritech and food innovation to address these challenges is widely acknowledged. He referred to advances to digitalisation in agriculture, involveing the use of technologies such as sensors, drones, GPS, data analytics, and machine learning to optimise various aspects of farming practices.
According to him, these technologies enable farmers to make data-driven decisions on crop management, irrigation, fertilisation, pest control, and harvest timing, maximise yields while minimising resource use and environmental impact.
However, he expressed concerned about the lower level of adoption and integration of agritech solutions, adding that this poses significant challenges to food production.
“When you come to the production, the way we produce food, we are still using the traditional system. Seventy to 85 per cent of farmers still use the traditional tools such as hoes and cutlasses. Tractorisation level in Nigeria is very, very low. We have less than 40,000 tractors nationwide. Why some countries have very high tractorisation characterisation potential that Nigeria particularly is very, very low. We need to do something about that.
“Others have progressed to using tractors to plough, harvest and hallow to more advanced technologies that all contribute to the viability of agriculture. This employment of modern, state-of-the-art technology has been credited with in crop management and increased harvests. With precision agriculture, players in the agri-food chain are using technology to optimise and automate agricultural operations and field activities, saving significant amounts of time and effort.
“People are using drones to map out their farms, spread and carry out a variety of things.The pursuit of precision agriculture and its associated agricultural technology has led to the emergence of sophisticated AI driven equipment deployed on wheat farms. The machines are programmed to know what crop you planted and if any other plant exists on that farm, the weeders will mechanically remove any crop apart from the one that you planted. These are just a few examples of how farming has benefited from advances in agriculture technology. With geo-mapping technology used to assess the land, it is possible to know which part of the land is fertile and which one is not rich in nutrients. A lot of digital transformation is going on in agriculture, which Nigeria is not able to access.”
Notwithstanding, he indicated that the government is making a lot of efforts to transform the agricultural system to be more productive, sustainable, and resilient, thereby safeguarding food security for the future.
He added: “The government is pushing a lot to enable improved use of technology in farming. This was the main reason a number of automation options came about. The government is pushing a lot to establish a functional tractor hiring services system. The intention is to ensure a lot of farmers have access to tractors to increase acreages and put more farmland into use. Tractors are to be shared out to farmers so they will be able to plough a lot of farmland. We have achieved much by using tractors to reap many benefits in terms of higher efficiency. We need very serious improvement because that number is very, very low at the national level.”
While the government has made improvements in the country’s capacity to assist producers through extension education, he believes more investment in safety, especially pesticides education, may be needed to support productivity growth in the sector. He said increasing investment in pesticide education is likely to yield long-term benefits for farmers and society by promoting safer and more sustainable agricultural practices.
The DG emphasised: “We need a lot of regulation in the areas of pesticides and chemicals. The Federal Ministry of Agriculture and Food Security started working on this in the last three years. There is legislation in the National Assembly concerning the control, sale and management of agro pesticides. We need to do that because some have been banned by the European Union (EU) and other advanced nations. Because of the porous borders that we have, some still find their way into the country as the intention of the Federal Ministry of Agriculture and Food Security is to checkmate and to ensure that these things do not come in.
“Farmers do not use them and that they have specialised places where they can buy these agrochemicals from, to enable them use only appropriate, specified and approved chemicals that will not be injurious to their produce. And when we export produce the residues will not be found inside produce as well. Those are some of the challenges that we have.”
Isegbe called for increased partnership between the government and the private sector to upgrade the agricultural value chain, with a focus on storage and other critical components.
This, according to him, can lead to increased competitiveness, greater export potential, and economic development in the agricultural sector.
He noted: “Storage after production is an issue. The concern the government has is to improve the availability of effective storage alternatives. So far, we have silos. About half of the number of silos in the country has been given out to private stakeholders under the Public-Private Partnerships (PPP) arrangement. It marks a step change in paving the way for the silos to be run better. The Federal Ministry of Agriculture and Food Security uses the silos to store grains for the National Strategic Grains Reserve. From time to time, the Federal Government releases grains to checkmate the increase in prices in the local market.”
As the Federal Government acknowledges the importance of increasing production of staple foods such as corn, rice, and beans to mitigate consumer price inflation. Stakeholders underscored the need for a sustainable agricultural transportation and logistics framework to address inadequacies in the system hindering smooth flow of food supply to effectively reach consumers.
To address these challenges, he maintained that the government may need to invest in upgrading transportation infrastructure, implementing better logistics strategies, and possibly even incentivizing private sector involvement in improving transportation networks.: “Indeed, transportation of agric produce is still a challenge. In agriculture, how a produce is transported matters. The type of vehicle that is used for transportation is a challenge. It is expected that vehicles transporting agric produce be refrigerated, so they can maintain some level of coldness and reduce spoilage and waste. Take the case of fresh fruits and vegetables; they must be transported at a temperature of between 15 and 16 degrees centigrade. Cool, not frozen. Cool enough to allow it to get to its destination, so that the vegetables will not be wasted. They can get to the markets fresh. Logistics on the road could be difficult. Right now, the Federal Government is still discussing with the Police, Vehicle Inspection Officers (VIOs), the Customs and the Federal Road Safety Commission (FESC) to guarantee free passage for agri-produce until the point of destination. Even if there is a crime, the vehicle has committed a traffic violation, it is being discussed that it will be noted at the point of where the offence is committed, but the case will be transferred to the final point of destination. So the vegetables or those fresh produce can reach the decision without spoilage. The National Union of Road Transport Workers (NURTW) and the National Association of Transport Owners (NARTO) are going to be involved in all these to ensure that this is done seamlessly. A lot of discussion is ongoing to ensure that it is done properly.”
As the government continues to work towards transforming agriculture for a more sustainable and food-secure future, he reiterated the commitment of NAQS to support producers in generating income from exports.This,according to him, aligns with broader goals of promoting sustainability and food security. He explained: “Farm inspection and certification is the job of the NAQS in addition to the state ministries of agriculture and the Federal Ministry of Agriculture and Food Security to ensure that farms follow the rules. Where did you get the seeds from? Are the seeds certified? If they are certified, did you preserve them well to maintain the quality of certification that was given to the farmer at the point of purchase? How and where did the farmer store the seeds? If the seeds were bought a year before or earlier than the planting season where were the seeds stored? How were they stored and how are they planted? Is there any irrigation or is the farmer depending on rain fed agriculture? All these things could impinge on the quality and strength of the agri- food system that we have in the country. So if the product is meant for export, then it has to go through NAQS where a lot of questions will be asked. We need to know where the seeds are coming from. We need to know who supervised the farm. Is the farm registered? All these questions have to be asked: Which pesticide was used and all that before NAQS can issue the Phytosanitary (SPS) certificate in the case of plant and plant products for export overseas. That is to ensure that there will be no rejection of the agriculture produce at the point of export.”
