If the problems with insecurity and infrastructure are resolved, Nigeria’s agricultural sector could grow by 5% to 6% in 2023, according to Gabriel Idahosa, Deputy President of the Lagos Chamber of Commerce and Industry (LCCI).
In an interview with TVC News, Idahosa emphasized that the agricultural sector’s current trends in Nigeria point to infrastructure issues, such as poor roads, a lack of technical equipment, and insecurity.
He said:
If these issues are tackled, we can see very significant growth in the sector. Anything between 5 to 6% is very affordable because of the presence of demand, farmers’ knowledge, and access to finance.
We need to keep fighting against insecurity so that all farmers can go freely to their farms daily and do the only business they know without having to see the destruction of their crops and to pay a lot of extra costs for personal security for themselves and their farms. That is the most important farming constraint.
The other constraint is the infrastructure around the agricultural business. The quality of roads as well as power supply, the quality of technical equipment like tractors and harvesters that farmers need.
Addressing the challenges
Taking care of these problems, according to Mr. Idahosa, will make it easier to access farms to produce and transport the goods to markets or processing facilities. He claims that the entire network of roads and railroads, which should aid in these processes, is currently operating below par; it is far from ideal.
The Central Bank of Nigeria, the Bank of Agriculture, and other commercial banks all offer funding facilities, so the lack of access to capital is not necessarily a pressing issue that needs to be addressed, according to him. Thus, the sector’s lack of funding is not a major problem.
More Insights
The World Bank stated in its January 2023 Global Economic Prospects report that sub-Saharan African (SSA) food markets remain constrained due to stock declines, restricted imports, weather-related production interruptions like floods in Nigeria, high input prices, and the detrimental effects of insecurity on farming and suppliers’ access to food markets.
According to the World Bank, as a result of these factors, the food systems in the SSA region will be especially vulnerable to a variety of shocks, such as the volatility of world food prices and climate change.
