Fixing agriculture critical to economic rebound

Vibrant agribusiness protects lives and livelihoods

Phocks from the Clsfa-nv pandemic have hit kigeria in a time when its absorbers are best defined as weak. It has worsened the precarious state of the economyi costing kigerians their jobsi weakening economic growth and increasing the number of poor masses. qo help save livesi prevent increase in poverty rate and protect livelihood of the poor and vulnerablei the federal government must reprioritise public spendingi focus more on expenditures aimed at stimulating and developing the economy. One way will be to lessen the Clsfa-nv induced pressures on the kigeria agricultural sector. ft has gotten to a point where all hands must be on deck to rebuild a more vibrant and sustainable economy. The federal government’s “I am self sufficient and well able” thinking and policies will not worki hencei the private sector must be carried along. fn every economic crisisi households bear the brunt eventually through increased cost of livingi job lossesi health complications etc. Households account for more than 70 percent of GDP. Hence, it only makes sense that policy options that can help mitigate the effects of the crisis on this group must be focused on. This will help lay the foundations for a strong economic recoveryi generating more jobs and improving employment. qhe kigeria agricultural sector has remained a major contributor to the economy compared to other sectors. In 2019, the sector contributed 22.12 percent to Nigeria’s nominal dam coupled with the fact that the sector employs about TM percent of Nigeria’s working population. The sector is also the largest economic activity in the rural area where almost RM percent of the population lives. However, the outbreak of the Clsfa-nv pandemic has caused the sector to contract. It has brought to the fore many of the existing structural challenges in the sector. carmers and dealers of agricultural goods struggled through the lockdowni as security agents routinely declined to grant ease of passage. tith farmers unable to access their farmsi some that should have harvested during the months coinciding with the lockdown were unable toi while those that should have been preparing their land for the planting season were equally restricted. According to the fnternational cood molicy oesearch fnstitute Efcmoffi the agriculture sector contracted by minus N4 percent in April/ May 2020. Export crops such as sugarcanei beverage cropsi export crops declined 4T percenti 4R percent and R8 percent respectively due to falling export demand and input supply disruptions. These crops account for less than N percent of agriculture GDP. Alsoi decline in investment spending and construction activities reduced demand for timber and wood products. This led to a minus 25 percent plunge in the forestry subsector which accounts for 1.1 percent agriculture. Root crops which are the largest food group and agriculture subsector in kigeria accounting for 43.3 percent of the sector’s dam contracted by R percent. In terms of value of activities, this is huge. Other subsectors moved in a similar direction. joreoveri the shut down of fndoramai a leading fertiliser produceri was termed the major challenge for farmers in this difficult time. Fertilisers are needed to supplement required elements found naturally in the soil for improved output. Farmers now have to find a way of multiplying their farm harvest else food shortage awaits Nigeria in 2021. mrojections by some agricultural commodity producers shows that productivity this year could reduce by an average of up to 47.5 percent. kigerians face a harsher reality of food shortagei job losses; if reforms and policies are not initiated. Food shortage means higher prices amid excess demand. With higher prices adding to inflationary pressuresi kigerians are worse off with no corresponding increase in income due to high job losses. tith such reforms targeted at increasing the productivity of farmers as well as the storing and processing capacity of agricultural producei kigeria would be able to mitigate the negative effects of the pandemici while generating more jobs. tithout bold reformsi strong fiscal and monetary policy actions, the torld Bank warns that the macroeconomic implications of COVID-19 in 2020 and 2021 will be severe – including the loss of lifei and the possibility of five million more kigerians being pushed into poverty – even if kigeria manages to contain the spread of the virus.