Nigeria's Agricultural Sector: A Challenge for the Incoming Government

Nigeria's agricultural sector has been a stalwart for the country, accounting for 40% of GDP and employing 60% of the workforce. Despite experiencing growth in important food crops such as maize, cassava, and yam, the sector is under-exploited due to crumbling infrastructure, poor extension services, and inefficient distribution of fertilizers. The incoming government faces a significant challenge in providing basic services to the country's considerable rural sector, where land is becoming scarcer and pressure for investment is growing.

Key Takeaways:

• Nigeria's aggregate index of agricultural production rose an average of 3.5% per annum from 1993 to 1997, following an increase of almost 9% a year during the 1986-1993 structural adjustment period.
• The smallholder sector produces more than 90% of food, with each farmer controlling under three hectares of land. Over 90% of farmers rely on hand hoes as their primary means of cultivation, and fewer than 1% have access to mechanized tractors.
• Consumption today is no higher than it was 15 years ago, despite rapid population growth. Agricultural economists believe that the key to helping Nigerian agriculture live up to its potential lies in persuading entrepreneurs that there is a profit to be made in farming.
• The government has recently lifted export bans on crops such as cassava and maize, but policy inconsistency remains a significant impediment to long-term investment.
• The International Institute of Tropical Agriculture in Ibadan has developed new technologies that could aid in improving food production in Nigeria.

Statistics:

• 60% of Nigeria's workforce is employed in agriculture.
• 40% of GDP comes from agriculture.
• 90% of food is produced by smallholders.
• Under 3 hectares of land is controlled by each smallholder farmer.
• Over 9% of farmers rely on hand hoes as their primary means of cultivation.
• Fewer than 1% of farmers have access to mechanized tractors.
• Nigeria's aggregate index of agricultural production rose 3.5% per annum from 1993 to 1997.

Sources:

• Financial Times Limited, 1999.