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Food supply

Federal Government Pushes for Investment in Staple Crops to Achieve Food Sovereignty

Strategic Insights

— 2 min read

As part of its effort to achieve food sovereignty, the Federal Government has emphasized the need for increased investment in staple crops such as tomato, cassava, and maize. Minister of Agriculture and Food Security Abubakar Kyari explained that these investments would not only increase productivity and reduce post-harvest losses but also strengthen food security and ensure strong financial returns for investors. Kyari further emphasized the potential of these investments to drive economic resilience and sustainable development across Africa.

Key Takeaways:

  • The Federal Government is seeking investment in tomato, cassava, and maize value chains to boost productivity and reduce post-harvest losses.
  • The tomato investment is estimated at $869 million, targeting 72,000 hectares in Kano, Bauchi, and Borno, and is expected to benefit 36,000 farmers directly and 246,000 individuals indirectly.
  • The initiative is projected to deliver an internal rate of return (IRR) of 12.5% and a net present value (NPV) of $171 million.
  • For cassava, Nigeria is seeking $382 million to boost productivity across 207,000 hectares in Ogun, Oyo, and Anambra, benefiting 45,000 farmers directly and 300,000 individuals indirectly.
  • The cassava initiative is expected to deliver an IRR of 15.2% and an NPV of $187.7 million.
  • The maize programme is the largest, with a planned investment of $1 billion across 1 million hectares in Katsina, Kaduna, and Oyo, designed to close Nigeria's 5 million metric tonne production gap.
  • The maize programme is expected to benefit over 420,000 farmers directly and nearly 3 million people indirectly, with an IRR of 18.7% and an NPV of $75.6 million.

Statistics:

  • Total investment sought for maize: $1 billion
  • Total investment sought for cassava: $382 million
  • Total investment sought for tomato: $869 million
  • Total hectares targeted for maize: 1 million
  • Total hectares targeted for cassava: 207,000
  • Total hectares targeted for tomato: 72,000
  • Number of farmers to benefit directly from maize programme: 420,000
  • Number of individuals to benefit indirectly from maize programme: 3 million
  • Projected internal rate of return (IRR) for tomato investment: 12.5%
  • Projected internal rate of return (IRR) for cassava investment: 15.2%
  • Projected internal rate of return (IRR) for maize investment: 18.7%
  • Projected net present value (NPV) for tomato investment: $171 million
  • Projected net present value (NPV) for cassava investment: $187.7 million
  • Projected net present value (NPV) for maize investment: $75.6 million

Sources:

  • "Minister of Agriculture and Food Security, Abubakar Kyari, paper presentation titled 'Investment Opportunities in Tomato, Maize and Cassava Value Chains at Hand - In - Hand (HiH) Investment Forum' in Abuja"
  • (Note: All other information is derived directly from the provided text and does not require additional citation)

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