Nigeria’s Economy is primarily agrarian and informal, hence classic economic theories are useless unless they are modified. Government policies that interfere with local Agriculture are a significant problem. While local farmers were harvesting, Nigeria imported food during a food crisis. Because of the market excess that followed, prices fell and farmers were unable to make a profit from the sale of their produce. Many lost money, which made it harder for them to invest in the following growing season and would cause another food crisis.
To tackle this, policies must be systematic and address the root causes rather than band-aid solutions. Better farming methods, low-interest loans, and Subsidies are all crucial means of supporting regional farmers. Investing in transportation and storage facilities is also crucial to preventing post-harvest losses and ensuring a steady supply of food. A balanced approach is needed when importing food to ensure that it increases rather than decreases domestic production. Investors from the private sector, agro-processing companies, and farmers should all have direct access to markets in order to support a robust agricultural economy.
Reliance on imports damages local agricultural output.
Significant post-harvest losses, a high reliance on food imports, and variable Farmer earnings are some of the major issues facing Nigeria’s agricultural economy. The nation bought almost ₦3.35 trillion worth of agricultural products between 2016 and 2019, which is four times more than its agricultural exports of ₦803 billion during that time. This reliance on imports damages local agricultural output in addition to having an impact on the country’s economy. The problem is made worse by losses that occur after harvest. Nigerian farmers lose over half of their harvest because of insufficient transportation and storage infrastructure.
This discrepancy emphasises the necessity of focused efforts to help farmers lower losses and raise incomes. The preservation and Empowerment of local farmers should be given top priority in the policies that the Nigerian government creates and executes. This entails giving prompt subsidies, making low-interest loans available, and guaranteeing that advanced farming methods and better seedlings are accessible. To lower post-harvest losses, make investments in the Construction and renovation of storage facilities and transportation systems. This entails building cutting-edge silos, cold storage facilities, and effective road systems that link rural farms with metropolitan marketplaces.
Farmers have voiced their worries about difficulties they encounter.
Limit imports by taking into account the cycles of indigenous output. Imports ought to enhance local produce rather than replace it. Protecting farmers against market gluts can be achieved by imposing import limits or Tariffs during local harvest seasons. Establish a favourable business climate to attract Private Sector investment. This can be accomplished through public-private partnerships, Tax incentives, and assistance for Agro-processing businesses that enhance the value of agricultural products. Make sure farmers receive training on sustainable farming practices and climate-resilient crop varieties, among other best practices in agriculture. In order to provide ongoing assistance and information sharing, extension services must to be improved.
Create agricultural associations and cooperatives to increase negotiating leverage. Make sure farmers are paid fairly for their produce by facilitating direct connections between producers and consumers through farmers’ markets and online marketplaces. Nigerian farmers have voiced their worries about the difficulties they encounter. “The predicted floods threaten to ruin our crops, and with rising costs, it’s becoming increasingly difficult to sustain our livelihoods,” bemoaned Benue State rice farmer Enoch Fater. To solve these problems, policymakers are also acting. A law to criminalise the Export of significant amounts of unprocessed maize was recently adopted by the Nigerian Senate in an effort to fight hunger in the face of the country’s dire cost-of-living issue.
Related Article: The future of agriculture in Nigeria
According to a joint report by the Nigerian government and the United Nations, over 30 million Nigerians are expected to experience food Insecurity in the upcoming year, a significant increase from previous years, and the report attributes this crisis to economic hardships from austerity measures, flooding, and ongoing insecurity disrupting agriculture. Economists stress the urgency of these interventions, stating that addressing Nigeria’s agricultural challenges requires a multifaceted approach that combines policy reform, Infrastructure development, stakeholder engagement, and the adoption of best practices from successful models around the world.