Gaps in Nigeria Demand and Supply Across Key Crops and Activities

Starting in 2010-2011, the Government of Nigeria, after years of being neglect, began to reform the agriculture sector. To refocus the sector, the Government implemented a new strategy (the Agricultural Transformation Agenda, ATA) built on the principle that agriculture is a business and therefore policy should be about supporting it. The main priority of policy was to “restart the clock” and reintroduce the Nigerian economy to sustainable agriculture centered on business-like attitude driven by the private sector. That strategy was in place from 2011-2015.

The ATA was a good platform to re-engage key stakeholders in Nigerian agriculture to shift focus towards how a self-sustaining agribusiness focused economy could be built. The ATA focused on how to make Nigeria’s agriculture more productive, efficient and effective. It set a target of creating 3.5 million jobs by 2015; generating foreign exchange, and reducing spending on food imports. Among its key achievements was a restructuring of the federal fertilizer procurement system.

ATA however also faced challenges and did not deliver on all the targets identified. For example, Nigeria still imports about $3 to $5 billion worth of food annually, especially wheat, rice, fish and sundry items, including fresh fruits. As a result, Nigeria is not food secure. Wastage levels remain high in production areas, reducing supply of feedstock to processing factories, requiring them to keep importing supplies. The net effect is limited job growth across the agricultural value chain from input production to market systems, and continued use of limited foreign currency earnings to import vast quantities of food.

On balance, the ATA was an important first step towards rediscovering agriculture. As a result, many companies, individuals and donors are now keen to invest in Nigerian agriculture once again. Agriculture is viewed as a business that can provide a reasonable basis for further wealth and job growth in Nigeria.

With that in mind, the policy and strategic focus is now on how to build on the initial progress made, and transition Nigeria to a new plane In terms of agribusiness performance. That will be the focus of the proposed new policy regime. That new policy’s primary focus will be on closing the demand – supply gaps between crop and livestock production. Gap closing will also include tackling related input, financing, storage, transport and market access issues present in key value chains.

Credit to : Federal Ministry of Agriculture & Rural Development