Currently, Nigeria is experiencing a serious food crisis as a result of several issues, including hyperinflation, insecurity, and weak government. According to the United Nations Food and Agriculture Organization (UNFAO), Nigeria is home to the greatest number of food insecure people in the world, estimated at 31.8 million, a number that could increase to 82 million by 2030 if the issue is not resolved immediately. President Bola Tinubu of Nigeria declared a State of Emergency over food Insecurity and implemented policies including the delivery of food relief, free fertilizer, and Farmer subsidies. Notwithstanding these initiatives, problems like shattered supply chains and food scarcity persist in making the situation worse.
Stakeholders in Blockchain Association of Nigeria (SiBAN) president, Obinna Iwuno, suggests blockchain Technology as a possible remedy. In his view, this technology has the potential to improve food supply chains’ traceability, accountability, and openness while lowering fraud, guaranteeing food security, and putting a stop to wealthy traders’ hoarding. By granting farmers access to financial services, expediting transactions, and lowering the possibility of fraud, this technology also holds promise for enhancing financial inclusion for farmers. Still, a major obstacle to the broad implementation of blockchain in agriculture is the absence of clear regulatory requirements.
Lack of technological infrastructure may prevent it from being widely used.
Global agricultural supply networks have seen encouraging benefits from blockchain technology. Blockchain is being used by Twiga Foods, a business-to-business food distribution platform in Kenya, to improve its operations. Twiga Foods tracks product from fields to markets, decreasing food waste and facilitating direct connections between farmers and sellers. By eliminating intermediaries and guaranteeing on-time payments, this has increased farmers’ earnings. The blockchain-based “Bitland” network in Ghana is assisting farmers in obtaining land titles and giving them collateral to obtain loans, thereby improving financial inclusion and agricultural productivity.
Although this technology has significant advantages, some experts doubt that technology can be applied in places like Nigeria. Opponents contend that because the technology is still in its infancy, exorbitant costs, unclear regulations, and a lack of technological Infrastructure may prevent it from being widely used. Agricultural economist Andrew Coburn notes that many rural areas of Africa lack digital literacy, consistent internet connectivity, and electricity—all of which are prerequisites for blockchain solutions. In addition, he issues a warning regarding the high setup costs and difficulty of using blockchain technology into conventional farming methods.
Small-scale farmers may find it expensive to build up blockchain networks.
There are many obstacles in the way of using blockchain in Nigerian agriculture. A major worry is farmers’ lack of technological literacy; many smallholder farmers have little familiarity with digital technologies, which may impede adoption. Small-scale farmers and agribusinesses may find it prohibitively expensive to build up blockchain networks due to the associated costs of data storage, transaction fees, and maintenance. Further impeding the smooth incorporation of blockchain technology in Nigeria is the country’s current infrastructure, which includes erratic power supplies and unreliable internet access.
A state of emergency on food insecurity has been announced by President Tinubu’s administration, along with a number of other measures like giving food help to the most needy, giving free fertilizers, and giving farmers input subsidies. In an effort to increase output, certain states—Niger among them—have taken the initiative and started farming on public land. These actions do not address the underlying problems of damaged supply chains, inadequate storage, and inadequate distribution networks, therefore their efficacy is still uneven. Although there has been minimal implementation of the government’s attempts to combat food hoarding, dealers have persisted in stockpiling supplies and manipulating market prices.
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Nigerian lawmakers must place a high priority on establishing a conducive atmosphere if they hope to fully realize blockchain’s promise in the agricultural sector. Creating precise regulatory parameters that safeguard farmers and Investors while promoting Innovation is one way to do this. To enable blockchain networks, the government should make investments in digital infrastructure, increase access to the internet in remote areas, and guarantee a steady supply of electricity. Programs for Education and training are also required in order to raise farmers’ technological Literacy and enable them to comprehend and take advantage of the technology.