Unlocking Nigeria’s agricultural export potential

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NIGERIA struggles to feed its citizens despite the vast arable land estimated at 36.9 million hectares by Statista or 40.8 per cent of its soil by online resource site Microtrends, fertile soil, and a favourable climate. This gives it the potential to become a net food exporter globally, thereby harnessing foreign exchange, but it lags. That should change.

The country was reminded of its obvious potential by the co-chair of the Bill and Melinda Gates Foundation, Bill Gates, during the 2024 Nutrivision event in Abuja. Gates, the Microsoft co-founder, stated that Nigeria needs to tackle its malnutrition crises with innovative strategies and investments in agricultural productivity to become sustainable and a net food exporter.

He said, “Nigeria has significant potential to enhance its food output, transforming it into a net food exporter. This could generate revenue through food exports, boost the economy, and improve the livelihoods of people in rural and northern regions.”

For now, food security is a mirage. Worse, the prediction by Gates might remain a dream.

Despite its vast endowments, Nigeria imports many staples. In 2022, Nigeria imported rice primarily from India, the United Arab Emirates, the United States, Vietnam, and China with $6.06m. It is a net importer of wheat, poultry, fish, and other edibles.

The FAO estimated Nigeria’s annual food import bill to be $3bn. It relies on $10bn of imports yearly to salvage food production shortfalls, per the International Trade Administration.

In December, the Federal Government said 50 of 80 million hectares of arable land remain uncultivated. According to the 2023 Cadre Harmonise report, research by the WHO, OCHA, and UNICEF on food security, 26.5 million people are projected to struggle with food insecurity in Nigeria.

Unfortunately, children suffer the most. The report stated that nine million children are at risk of suffering from acute malnutrition and wasting—of which 2.6 million could face severe acute malnutrition.

Food poverty means more than 63 per cent of Nigerians, which translates to 133 million, are multi-dimensionally poor, per NBS (2022). Given the merger of the naira rates and the cancellation of petrol subsidy, more than 40 million Nigerians have joined the pool of the impoverished, says KPMG.

The food niggle is compounded by the high post-harvest losses. Nigeria incurs N3.5tn annually in post-harvest losses, per FAO. The Minister of Agriculture and Food Security, Abubakar Kyari, stated that Nigeria lost 40 per cent of its agricultural produce to inadequate storage and transport facilities.

Farmers lose 60 per cent of their tomatoes to post-harvest losses due to a lack of refrigerated transport systems and cold storage warehouses.

In addition, farmers are besieged by terrorism, kidnapping, killings, and Fulani herdsmen rapine. Farmers have abandoned their farms with little or no government protection or counteraction. The food basket states are threatened. They are taxed and enslaved by bandits and killed by self-entitled Fulani herdsmen.

Residents of Shiroro LGA, Niger State, lamented that farmers are being enslaved by terrorists to work on their farms. In Sokoto, terrorists sacked a farming community in the Isa area of the state; they burnt their houses and food storage silos in July.

The infamous and shocking beheading of 76 rice farmers in Borno State in 2020 has not changed the security climate for farmers in the state. ISWAP terrorists massacred over 33 persons in Mafa LGA, Borno State this month.

Unlike the other federal jurisdictions globally, there is no robust state policing system to counter the threats.

But it was better in the past. In the 1960s, Nigeria was a major global player in agricultural commodities. It was the world’s largest producer of palm oil with a 43 per cent global market share, but currently struggles to contribute 3.0 to 5.0 per cent to global output.

Its competitive export of cocoa from the South-West, palm oil from the South-East and South-South, and groundnut from the North has dwindled drastically since the discovery of crude oil. Despite being the largest producer of cassava globally, it paradoxically imports ethanol, one of its derivatives. The same irony applies to maize, which contributed 5.9 per cent to 22.4 agriculture GDP, yet Nigeria is a net importer.

As Gates said, without adequate investment and security of farmers, Nigeria cannot become a net exporter of food or feed the citizens.

It needs to redouble its investment in agriculture. The sector has been underserved in budgetary allocations despite its potential. Only 1.96 per cent of the 2023 budget and 3.5 per cent of the initial N28.8tn of the 2024 federal budget were earmarked for agriculture—below the 10 per cent benchmark stipulated by the Maputo Declaration on Agriculture and Food Security by AU countries. Agriculture contributed 24.9 per cent to nominal GDP in Q4 2022 and 19.6 per cent in Q1 2023.

The Federal Government and states should make concerted efforts to increase allocation to the agriculture sector; expenditures and programmes should be thoroughly and transparently monitored to stop corruption.

The corrupt distribution of fertilisers and agriculture incentives through politicians and their cronies should stop, as this frustrates farmers. State governments should strengthen flood control mechanisms and ensure that ecological funds are utilised to protect farmlands and farmers from natural disasters.

The shabby infrastructure is concerning. Farmers grapple with deplorable rural roads, which inhibit the delivery of food and crops to urban centres. They continue to use outdated methods while their international counterparts use tractors, deploy research and development, and technology-enabled agriculture practices to increase quality crop yield all year round. Nigeria should fund research institutes adequately to serve as a backbone to an effective agricultural revolution.

According to the FAO, Nigeria is one of the few countries with poor numbers in mechanised farming. The World Bank stated that Nigeria has about 45,000 tractors but needs about 81,000. While the government has engaged a popular tractor manufacturing company to improve mechanised farming, it should explore cheaper and smaller tractor options through a competitive method.

Nomadic cattle rearing, which has roused violence and bloodshed, is backward. Ranching should be enforced by the government to boost livestock farming and preserve settled farmers.

Governors have a crucial role in revitalising agriculture in their states. Ditto for LGAs. They should support farming collectives in their domains instead of relying on the monthly federal allocations. While creating an enabling environment for agriculture investors and incentivising extension cottage industries, PPPs should be encouraged to achieve vast farming enclaves for domestic consumption and export.

Governors should prioritise ease of doing business policies. Technology-driven agricultural practices must be adopted; this includes the use of mechanised equipment, pest-resistant seeds, and precision farming techniques.

All the tiers of government should collaborate to end the ‘nuisance taxes’ that increase the prices of produce. A modern pan-Nigeria rail system will bring down the cost of transportation currently affecting food commodities.

Nigeria’s journey to food sustainability and agricultural export dominance is within reach—if it chooses the right path.