Dataphyte has released its latest research brief which provides an in-depth overview and appraisal of Nigeria’s Agricultural sector.
The brief titled “From Farm to Future: Thoughts on Food Security, Farmers’ Prosperity and Fiscal Stability in Nigeria” critically examined in detail the challenges facing the Agricultural sector, how these affect productivity in the sector and how the challenges ultimately impact food availability and prices.
The economic dilemma of the country’s agriculture sector is x-rayed; accounting for the largest proportion (31%) of Nigeria’s labour force and contributing 89% of the country’s Gross Domestic Product (GDP), yet the sector only contributes 0.38% of federal government revenues with a trade deficit of N146 billion as of 2021.
The research brief also examines the various government interventions through the Central Bank of Nigeria (CBN) like the Anchor Borrower’s Programme and the Agricultural Credit Guarantee Scheme Fund (ACGSF). These appear not to have produced the desired outcome, noting that commercial bank loans and advances to the agriculture sector have remained low even though the sector accounts for about 26.84% of economic activities in Nigeria.
To address the challenge of low commercial banks’ loans and advances to the sector and other challenges highlighted in the research brief, the report recommends policy interventions that should be pursued consistently as well as leveraging on technology to fully maximise the potential of the agricultural sector.