Home News Why Cash Crop Production is Key to GDP Growth, Livelihood Improvement 

Why Cash Crop Production is Key to GDP Growth, Livelihood Improvement 

by AgroNigeria

By: Abdulmalik adetola Lawal 

Crop production forms the foundation of Nigeria’s agricultural economy, serving as a key driver of employment, economic growth, and food security. 

According to the Nigeria Bureau of Statistics (2024), crop production contributed approximately 19.27% to the country’s overall GDP. As the largest subsector within agriculture, it accounts for about 87.6% of the sector, underscoring its critical role in national development. 

The diverse categories of crops produced in Nigeria each play unique roles in sustaining the economy and improving the livelihoods of citizens.

A significant category is cash crops, such as cocoa, which is Nigeria’s leading agricultural export. The country is currently the fourth-largest cocoa producer globally and a major player in Africa. 

According to FAO statistics (2022), Nigeria exported 299,625 tonnes of cocoa beans, generating ₦1.46 trillion in revenue in the previous year. 

Groundnuts are another major cash crop, with Nigeria being the largest producer in Africa and the fourth-largest globally.

Groundnut production rose to over 5 million metric tons in 2024 from 4.8 million metric tons in 2021, supporting industries that produce oil, milk, and other food products.

Staple crops, including rice, maize, cassava, and millet, are crucial to food security and economic stability. 

These crops significantly impact the economy, with rice, yam, and cassava alone contributing greatly to household income and food supply. 

Around 70% of households in Nigeria engage in crop farming, cultivating staples for both consumption and income generation. Rice is a widely consumed carbohydrate-rich staple, while cassava is highly versatile, processed into products like fufu, starch, and garri. 

Maize serves multiple purposes, including feed production, beverage manufacturing, and as a consumable food item.

Horticultural crops, such as fruits, vegetables, and spices, also play an essential role in human nutrition, employment creation, export revenue, and providing raw materials for industries. 

Together, all categories of crops significantly contribute to Nigeria’s economic growth and the well-being of its citizens.

Despite its importance, the crop production sector faces numerous challenges that limit productivity. 

A major issue is farmers’ limited access to financing and modern technology, which constrains their ability to enhance productivity and profitability. 

This issue affects individual farmers and has broader implications for the agricultural sector’s growth. Terrorism is another significant threat, disrupting food security and rural livelihoods.

Insurgency has displaced farmers, rendered arable farmlands unusable, and reduced agricultural output, exacerbating dependency on food imports.

Addressing these challenges requires holistic solutions.

Ensuring the safety of farming communities from terrorist threats is crucial, as is equipping farmers with financial resources and modern tools to boost productivity. By implementing these measures, Nigeria can strengthen its agricultural sector, enhance resilience, and pave the way for sustainable growth in the face of future challenges.

You may also like

Leave a Comment

AgroNigeria

AgroNigeria is a pioneer brand for agricultural “online” news publishing through its media publishing platform available 24hrs to over 30 Million internet users within Nigeria and other online readers internationally.

© 2024 AgroNigeria. All rights reserved. Developed by Godswill

Newsletter sign up!

 Sign up to receive our daily newsletter.