Nigeria has the potential to become a major player in the global economy by virtue of its human and Natural human resources endowments. However, this potential has remained relatively untapped over the years. After a shift from agriculture to crude oil and gas in the late 1960’s. Nigeria’s growth has continued to be driven by consumption and high oil prices. Previous economic policies left the country ill-prepared for recent collapse of crude oil prices and production. The structure of the economy remains highly import dependent, consumption driven and undiversified.
Nigeria is undoubtedly rich in natural resources; however, it has remained underdeveloped. Although the country depends mostly on crude oil for its foreign exchange, it is primarily an agrarian society. Agriculture is the prime mover of Nigerian economic growth. It has created employment opportunities, served as important sources of raw materials and has employed about two third of Nigerian labour force.
The Current State Of Agriculture In Nigeria Shows:
- The agriculture sector remains the largest employer in Nigeria, employing more than 60% of the labour force.
- More than 80% of Nigeria’s farmers are small hold farmers (SHF’s), these numbers account for 90% of Nigeria’s Agriculture Produce.
- Only about ₦40 billion was earmarked by the government for agricultural research and development (R&D) in 2019.
- Agriculture budget represents 1.8% (or ₦183 billion) of the total 2020 budget size. This significantly falls short of the 10% specified in the Maputo Declaration.
- Nigeria’s Agricultural trade deficit widened by ₦689.7 billion in 2019 compared to ₦549.3 billion in 2018.
- In four years (2016-2019), Nigeria’s cumulative agricultural imports stood at ₦3.35 trillion, four times higher than the agricultural export of ₦803 billion within the same period.
- Nigeria spent about ₦22.8 trillion on food items in 2019, representing more than half (56.7%) of the total household expenditure of ₦40.2 trillion.
