Website design By BotEap.comIn West Africa, agriculture accounts for about 40% of combined GDP and employs up to 70% of the available workforce. Agricultural commodities are the region’s second largest export to the European Union, although most goods are traded without any local added value. This represents a significant failure to produce high-value products that can improve profitability in farm operations and provide much-needed employment. Exports to newer markets are often held back by concerns about meeting international production standards. In addition, the region’s high transportation costs inflate the price of agricultural products in local markets and reduce the competitiveness of exports. The gross result of these conditions is that developing economies in West Africa and elsewhere generate only $40 to process a ton of agricultural products compared to $180 in developed countries.
Website design By BotEap.comFortunately, this persistently gloomy outlook for agriculture in sub-Saharan Africa is gradually beginning to change, and Nigeria is ready to take the lead in reversing the trend. In the first decade after its independence in 1960, the traditionally agrarian Nigerian economy contributed 60% of GDP and more than a third of total export earnings. The country was the world’s leading exporter of palm oil and had commercialized the production of several cash crops, including cocoa, cotton, rubber, peanuts and kola nuts. The situation changed radically when the oil boom of the 1970s shifted the focus away from crops and petrochemical exports became the main national obsession. Agriculture was marginalized and became a low-productivity, labor-intensive subsistence activity that ultimately plunged much of rural Nigeria into extreme poverty. Despite various attempts at resuscitation over the decades, including the 1972 National Fast Food Program, the 1976 Operation Feed the Nation, and the 1980 Green Revolution initiative, the steady decline in agriculture continued until the late 1980s. the last century.
Website design By BotEap.comThe redirection of agricultural policies affected since the return of democracy in 1999 was more successful. Under a radical reform program, Abuja targeted rural development with integrated plans for the promotion of agriculture, rural industrialization and infrastructure development. This integrated approach has produced tangible results: agriculture is now leading the country’s economic recovery, recovering to contribute 42% of GDP in 20084.
Website design By BotEap.comPerhaps the most significant thought to emerge from this recovery is Nigeria’s natural inclination towards agriculture. The traditional involvement in agriculture and the existence of diverse ecological conditions throughout the country offer enticing potential for the growth of a thriving and well interlinked agri-food industry. Nigeria’s ambitions for accelerated and inclusive economic growth depend on achieving a vibrant agricultural sector that can support broad business development and employment in the future. In fact, the United Nations Conference on Trade and Development (UNCTAD) expressly recommends the adoption of a national investment policy to diversify the economy with a strong focus on agri-food industries. The fact that this sector is poised to spark rapid business development in Nigeria is simply undeniable.
Website design By BotEap.comEntrepreneurial potential exists in almost all areas of local agricultural production. Nigeria currently produces more than 100,0006 metric tons of kola nut, which finds use in the manufacture of beverages, liquors, and sweets. However, local processing units are few and far between, and exports are largely limited to fresh and dried nuts with little added value. Likewise, cassava has become an important cash crop with untapped potential for industrial use and biofuel development. With the proper involvement of the private sector, commercialized agriculture can not only help industrialization and job creation, but also bridge the productivity gap and reduce food costs.
Website design By BotEap.comIn terms of broad parameters, policies for the effective development of the agricultural sector in Nigeria should focus on a number of key considerations:
Website design By BotEap.com* Guarantee food security by increasing supply and lowering prices with the specific objective of curbing inflation.
* Improve access to credit for small farmers and agricultural companies at low interest rates.
* Provide information, support and training to emerging agro-industries and promote best practices.
* Increase productivity through the promotion of high growth models in food processing companies.
* Prioritize locally available raw materials over fancy imports.
* Eliminate informal barriers to trade and simplify the manufacture of agricultural products.
* Promote greater regulatory cooperation between West African neighbors to increase regional trade.
* Reduction of tariffs on goods and services that support the agro-processing sector.
* Enforce relevant safeguards for value-added agricultural and food products to guard against import surges.
* Capacity building in the private sector and promotion of public-private partnerships in agro-processing industries.
Website design By BotEap.comAbuja’s intervention in the agricultural sector should be aimed essentially at creating the right environment for the rapid expansion of locally owned enterprises. However, there are serious challenges in this direction. Industrial processing of agricultural products is almost negligible, existing standards are very basic and often incomparable with export requirements. Postharvest losses are also very high in the region, averaging up to 50%7 for fruits and vegetables and 25% for grains. In many cases, losses due to customs delays and complicated documentation exceed the applicable duties. Therefore, labor-saving production and advanced harvesting and processing technologies are critical for the sustained revival of the Nigerian agricultural scene. In addition, efficient production and marketing systems will be vital to ensure high quality standards and competitive prices for both domestic industries and export markets.
Website design By BotEap.comIn terms of Nigeria’s long-term growth prospects, perhaps the most important consideration of all is simply realizing that future prosperity depends not on the yield of its oil fields, but on the harvest of its land.
