Nigerian Agriculture & Food Industry

Nigeria, often referred to as the "Giant of Africa," boasts a vast and diverse agricultural sector that is fundamental to its economy, employment, and food security.¹ Despite its immense potential, the industry faces numerous challenges, ranging from climate change to inadequate infrastructure.

Overview of Nigeria's Agricultural Industry

Agriculture is the foundation of the Nigerian economy, employing a significant portion of the population and contributing substantially to the Gross Domestic Product (GDP). It encompasses four main sub-sectors: crop production, livestock, forestry, and fishing. Crop production is by far the largest, accounting for about 87.6% of the sector's total output. The majority of farming is done by smallholder farmers, who operate on less than 1 hectare of land and account for over 80% of Nigeria's agricultural produce.

Nigeria has a total agricultural land area of 70.8 million hectares, with approximately 34 million hectares classified as arable land. However, a considerable portion of this arable land, about 56%, remains unexploited.⁶ Only a small fraction of the irrigable land (around 3.14 million hectares) is currently utilized. This highlights significant opportunities for expansion and increased productivity through better land utilization and irrigation.

Major Areas of Agriculture in Nigeria

Nigeria's diverse agro-ecological zones, stretching from the Atlantic coast to the Sahelian savanna in the north, allow for a wide range of agricultural activities:

• Mangrove Swamp and Rainforest Zones (Southern Nigeria): These humid areas are ideal for tree crops like cocoa, oil palm, rubber, and timber. They also support the cultivation of root and tuber crops such as cassava, yam, and cocoyam, as well as plantains.
• Derived Savanna and Guinea Savanna Zones (Middle Belt and Central Nigeria): These transitional zones are suitable for a mix of crops, including maize, sorghum, millet, yams, and cassava. They are also important for livestock rearing.
• Sudan Savanna and Sahel Savanna Zones (Northern Nigeria): Characterized by drier conditions, these regions are primary areas for cereals like sorghum, millet, and rice (especially in irrigated areas), as well as legumes such as cowpea (beans) and groundnuts. Livestock, particularly cattle, sheep, and goats, are extensively reared here, though this has led to conflicts with crop farmers due to desertification.

Drought and its Impact

Drought is a significant and recurring challenge, particularly in Northern Nigeria. Prolonged dry spells and erratic rainfall patterns, exacerbated by climate change, lead to:

• Reduced Crop Yields: Staple crops like millet, sorghum, and maize, which are vital for food security in the north, are highly sensitive to thermal stress and water scarcity. Many farmers report their yields being cut in half or more.
• Water Scarcity: Higher temperatures accelerate evaporation, causing rivers, lakes (like Lake Chad), and reservoirs to shrink, limiting irrigation potential and increasing competition for water resources.
• Desertification and Land Degradation: Long-term drought leads to the expansion of arid lands and the loss of fertile soil, further reducing arable land.
• Conflicts: The search for grazing land and water by nomadic herdsmen moving south often results in violent clashes with settled crop farmers.
• Food Insecurity: The combined effects of drought, reduced yields, and conflict exacerbate food insecurity, particularly for vulnerable smallholder farmers, and contribute to rising food prices across the country.

Major Produce Items and Volumes

Nigeria is a leading global producer of several key agricultural commodities:

• Cassava: World's largest producer, with nearly 60 million tonnes in 2022. It accounts for about 20% of global production.
• Yam: World's largest producer, at around 47.5 million tonnes in 2022.
• Taro (Cocoyam): World's largest producer, with 3.3 million tonnes in 2022.
• Cowpea (Beans): World's largest producer, reaching 2.6 million tonnes in 2022.
• Sorghum: World's largest producer, at 6.8 million tonnes in 2022.
• Oil Palm: Fourth-largest producer globally, with 7.8 million tonnes in 2022.
• Millet: Fourth-largest producer globally, with 2.2 million tonnes in 2022.
• Peanut (Groundnut): Third-largest producer globally, with 2.8 million tonnes in 2022.
• Cocoa: Fourth-largest producer globally (after Ivory Coast, Ghana, and Indonesia), with 332 thousand tonnes in 2022. It is a major agricultural export.
• Rice: One of Africa's largest producers, at 6.8 million tonnes in 2022, though significant imports are still required.
• Maize: 14th largest producer globally, at 10.1 million tonnes in 2022.
• Other significant crops: Okra (2nd largest producer), sweet potato (3rd largest), ginger (3rd largest), plantain (5th largest), papaya (6th largest), pineapple (7th largest), and tomatoes (11th largest).

Meat, Poultry, and Eggs:

• Livestock: Nigeria has a substantial livestock population, including over 80 million poultry, 76 million goats, 43.4 million sheep, 18.4 million cattle, and 7.5 million pigs (2017 data). Livestock production is concentrated in the northern part of the country.
• Poultry: The poultry industry is significant, with an estimated 180 million poultry birds (2017). However, domestic production often struggles to meet demand, leading to considerable imports.
• Meat Production: While specific, current total meat production volumes are not readily available, Nigeria is a net importer of animal protein, indicating that domestic production does not fully satisfy consumption.

Internal Consumption, Exports, and Excess Produce

Nigeria's rapidly growing population (estimated to reach 400 million by 2050) means that most of its agricultural output is geared towards internal consumption. Despite being a top producer of many staples, domestic productivity is often insufficient to meet the rising food demand, leading to a significant demand-supply gap.

Exports: Nigeria's agricultural exports are growing, but they remain a small fraction of overall exports, which are dominated by crude oil. In 2023, agricultural exports included:

• Cocoa Beans: Superior and standard quality combined were the top agricultural export, valued at N356.1 billion.
• Sesamum Seeds: Ranked second, with an export value of N253.7 billion.
• Soya Beans (excluding seeds): N120.1 billion in exports.
• Cashew Nuts (in shell and shelled): Combined value of N194.2 billion.
• Other notable agricultural exports include ginger, frozen shrimps and prawns, and natural cocoa butter.

Excess Produce and Food Waste: Post-harvest losses are a severe problem in Nigeria, estimated to be between 20% and 50% for various crops. This "excess produce" is often due to:

• Poor Storage Facilities: Inadequate cold chain logistics and storage infrastructure.
• Inefficient Transportation: Bad road networks leading to spoilage during transit.
• Lack of Processing Facilities: Limited capacity to add value and extend the shelf life of raw produce.
• Market Gluts: Overproduction in certain seasons without sufficient demand or preservation methods.

This significant post-harvest waste contributes to food insecurity and reduces farmers' incomes.

Donating Excess to Local Communities and Food Charities:

While formal, large-scale food banks are not as pervasive as in some Western countries, there is a growing recognition of the need for them. Several NGOs, community-based organizations, and some private initiatives work to collect surplus food and distribute it to vulnerable populations. However, the scale of these efforts is still insufficient to tackle the vast amount of food waste and food insecurity. Traditional community sharing practices also exist, where surplus from individual farms is often shared informally within villages.

Annual Revenue and Economic Importance

Agriculture remains a vital component of Nigeria's economy, contributing an average of 24% to the nation's GDP over the past seven years (2013-2019), and around 22.35% in Q1 2021. For every Naira invested in farming, the multiplier effect on the wider economy is substantial, as it supports numerous allied industries, processing, logistics, and retail. It is crucial for macroeconomic development and price stability.

Number of People Employed and Living Conditions of Farm Workers

Agriculture is the largest employer in Nigeria, engaging more than 36% of the labor force (some estimates go as high as two-thirds of the total working population). This translates to tens of millions of people whose livelihoods depend directly on farming.

Living Conditions of Farm Workers: For the vast majority of smallholder farmers and agricultural laborers, living conditions are often challenging:

• Subsistence Farming: Many operate at a subsistence level, producing primarily for their families' consumption, with little surplus for market sale.
• Low Income: Farm incomes can be very low, leading to widespread poverty among agricultural households.
• Vulnerability to Shocks: Highly susceptible to climate shocks (droughts, floods), price volatility, and insecurity.
• Limited Access to Services: Poor access to essential services like healthcare, education, clean water, and sanitation in rural farming communities.
• Lack of Mechanization and Technology: Reliance on rudimentary tools and methods leads to laborious work and low productivity.
• Insecurity: Farmers, especially in the northern and central regions, face threats from banditry, kidnapping, and farmer-herder clashes, which disrupt farming activities and displace communities.

Government Programs for Farmers and the Industry

The Nigerian government has introduced various programs to boost agricultural productivity, enhance food security, and reduce reliance on imports:

• Anchor Borrowers' Programme (ABP): A flagship initiative by the Central Bank of Nigeria (CBN) that links smallholder farmers to off-takers (large-scale processors) of agricultural produce. It provides farmers with loans, inputs, and extension services, with a focus on specific value chains like rice, maize, and wheat.
• Commercial Agriculture Credit Scheme (CACS): Provides long-term, low-interest credit facilities to commercial farmers to finance agricultural projects.
• National Food Security Programme (NFSP): Aims to boost food production and ensure food security.
• Accelerated Agricultural Development Scheme (AADS): Targets youth engagement in agriculture through training and financial support.
• Presidential Economic Diversification Initiative (PEDI): A broader strategy that includes enhancing trade capacity in agriculture by facilitating investments, reducing regulatory bottlenecks, and improving access to credit.
• Zero Reject Initiative: Aims to enhance the acceptability of Nigerian agricultural products internationally by promoting global quality standards.
• Special Agro-Industrial Processing Zones (SAPZs): These zones are being established to concentrate agro-processing activities, boost productivity, integrate production, and enhance processing and value addition.
• Import Restrictions: The government has periodically placed trade barriers on select agricultural goods (e.g., rice) to protect local producers and stimulate domestic growth.

Dependence on Other Countries for Food

Despite its vast agricultural potential, Nigeria remains a net food importer, facing a significant agricultural trade deficit. In four years (2016-2019), cumulative agricultural imports stood at N3.35 trillion, four times higher than exports. Wheat dominates agricultural imports. Nigeria is the largest fish consumer in Africa, consuming about 3.2 million metric tons annually, with domestic production meeting only a fraction of this demand. The country imports a substantial amount of rice (about 57% of its annual consumption) and relies on imports for a considerable portion of its animal protein, including poultry. This dependence on imports makes Nigeria vulnerable to global food price volatility and supply chain disruptions, underscoring the urgent need to boost domestic production and value addition.

In summary, Nigeria's agricultural sector is a sleeping giant with immense potential for growth and poverty reduction. Addressing challenges like climate change impacts, insecurity, inadequate infrastructure, and limited access to finance and modern technology is critical for transforming it into a robust engine of sustainable economic development and food security for its rapidly expanding population.