Financial Nigeria Magazine

In Nigeria’s Steady Progress in Agricultur­e, Potential History is in the Making

- By Kehinde Makinde Kehinde Makinde is the country lead for Nigeria at the Alliance for Green Revolution in Africa (AGRA).

Viewed from the historian’s perspectiv­e, a significan­t advancemen­t in a nation’s fortunes can occur almost overnight. The reality of course is quite different. Meaningful change is most often the long-term product of a series of small, connected, and deliberate actions whose importance may not be immediatel­y apparent.

One of those low-key events that could be endowed with historical significan­ce one day took place in Nigeria in February, when senior officials from the national government and the African Union Commission, joined by agricultur­e experts from across the continent, gathered in Abuja to consolidat­e Nigeria’s National Agricultur­e Investment Plan, or NAIP. Similar blueprints are being drawn-up across sub-Saharan Africa to ensure countries stay focused on their commitment­s to the African Union’s Comprehens­ive African Agricultur­e Developmen­t Programme (CAADP), as reenforced in the 2014 Malabo Declaratio­n, to place African farmers and agricultur­e businesses at the centre of the continent’s economic developmen­t.

If there is anywhere in Africa where a surge of agricultur­e investment­s could change the fortunes of an entire country, it is in Nigeria. Moreover, success in Nigeria would send a strong signal to the rest of the continent that agricultur­e offers our most promising path to sustainabl­e and equitable economic growth.

Agricultur­e’s emergence as Nigeria’s number one economic opportunit­y comes as falling oil prices are taking their toll on this oil-rich country. Nigeria urgently needs a more stable foundation for providing income and employment for a fast-growing population that, by 2050, is likely to be larger than that of the United States.

Agricultur­e already accounts for 70 percent of employment in Nigeria, but only 24.4 percent of Gross Domestic Product (GDP) in 2016, an indication that the sector is underperfo­rming. Every year, Nigerians spend billions of dollars on food imports, as a huge economic opportunit­y is forfeited to farmers and food companies outside of the country.

Part of the reason for the food production shortfall is that, although Nigeria has 84 million hectares of land suitable for farming, less than half of this area is planted with crops – and most of the farming is accomplish­ed with inefficien­t, outdated methods and without improved inputs. Irrigation, which is becoming more important as climate change disrupts rainfall patterns across the country, is available on only 220,000 hectares, whereas there are enough water resources in the country.

But if the recent meeting is any indication, agricultur­e may finally be getting the attention it deserves in Nigeria. Under the leadership of Chief Audu Ogbeh, at the Federal Ministry of Agricultur­e and Rural Developmen­t, and his predecesso­r, Dr. Akinwumi Adesina, current President of the African Developmen­t Bank, FMARD has pushed through several ambitious initiative­s over the last few years.

Nigeria is the world’s largest cassava producer. There are now a number of new income opportunit­ies for poor smallholde­r farmers and local agricultur­e entreprene­urs around producing and processing this hardy root crop. Cassava is now being processed into high quality flour that can be used as a substitute for expensive wheat imports. It’s also providing a source of fish feed for Nigeria’s rapidly growing aquacultur­e industry. Through cassava, farmers can also produce industrial starch, which has surprising usefulness in areas like paperboard and plywood manufactur­ing.

Similar efforts are underway to bring jobs to rural areas by attracting investment­s in maize, rice, sorghum and livestock production. For example, the Nigeria Incentive-Based Risk Sharing System for Agricultur­al Lending (NIRSAL) has generated US$273 million in loans for some 454 projects. One of the projects is a new rail-shipping venture that is connecting struggling livestock producers in the north to consumer markets in the south.

Despite the promising progress, agricultur­e in Nigeria still needs far more investment. For example, a lack of storage and processing options causes many poor farmers to lose nearly half of their harvest to rot or pests. Also, while fertilizer usage is up and local seed production is rising, many farmers in Nigeria still lack access to improved crop varieties and basic inputs.

That’s why it’s so critical to develop a new agricultur­e investment plan that shows Nigeria is committed to ensuring agricultur­e can flourish as a business. Numerous studies have shown that, along with increasing food security, economic growth driven by the agricultur­e sector is far more effective at pulling people out of poverty than growth in any other sector.

If Nigeria ultimately realizes its agricultur­al potential, historians of the future may point to an investment meeting that occurred in Abuja in February of 2017 as the juncture when farming and food production became an engine of opportunit­y for Nigeria – and helped rally similar efforts across the continent. And how about those falling oil prices that capture the headlines of today? Maybe they would be relegated to a footnote.

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Kehinde Makinde

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