By Abdulmalik Adetola Lawal
The Nigerian agriculture sector remains a cornerstone of the country’s economy, significantly contributing to the Gross Domestic Product (GDP). Local food production supports the population, while cash crops such as cocoa, palm oil, and rubber bolster foreign exchange earnings.
However, despite its potential, the sector has not achieved its full promise. Many Nigerians nostalgically recall the pre-oil era when agriculture thrived, feeding the nation and driving exports that strengthened the economy.
In the post-slavery era, palm oil emerged as Nigeria’s leading agricultural export. By the 1960s and 1970s, Nigeria was the largest global producer of palm oil, benefiting from unique endemic varieties. However, the dominance was lost to Malaysia, which strategically expanded its industry with large-scale farming operations and corporate investment. By contrast, Nigeria’s reliance on smallholder farmers and challenges related to land acquisition hindered similar progress. A robust public-private partnership (PPP) could have addressed these issues, enabling Nigeria to remain a leader in oil palm production and paving the way for similar success with other cash crops.
Despite government interventions, agriculture’s contribution to the economy has declined. For example, in the first quarter of 2024, the sector accounted for 17.22% of GDP, down from 24.63% in the last quarter of 2023 (National Bureau of Statistics). Factors such as climate change, high input costs, fuel subsidy removal, and inadequate infrastructure have hampered growth. These persistent challenges underscore the need for strategic public-private partnerships to revitalize the sector.
Public-private partnerships offer an opportunity to address infrastructure deficits. By partnering with private companies, the government can finance, build, and maintain critical facilities such as irrigation systems, storage warehouses, and cold chains. Private companies, motivated by profit, are often better positioned to ensure proper maintenance and efficiency. For instance, companies managing storage facilities could earn revenue through service fees or profit-sharing agreements, encouraging more private sector investment in agriculture.
Access to finance is another area where PPPs can drive significant change. Collaboration between financial institutions and the government can expand credit facilities for farmers, enabling them to invest in modern inputs and reduce post-harvest losses. Low-interest loans, facilitated by agricultural extension workers, could bridge financial gaps and boost productivity. Banks, in turn, could leverage this collaboration to onboard farmers into formal banking systems, creating a long-term revenue stream.
Agro-processing is another crucial avenue for PPP interventions. Farmers in Nigeria often struggle to transport their produce to markets, leading to significant post-harvest losses. While government initiatives like fertilizer subsidies and short-term loans have provided some relief, long-term solutions are needed. By creating a framework for farmers to sell directly to agro-processing companies, public-private partnerships can facilitate market access and reduce waste. Smallholder farmers could also benefit from cooperative structures that allow them to participate in large-scale schemes.
Technological advancements are transforming agriculture globally, and Nigeria cannot afford to lag. Innovations such as mechanized farming tools, improved seeds, and precision farming techniques could revolutionize the sector. Through PPPs, the government can work with agricultural consultancy firms and engineering companies to introduce these technologies at reduced costs. By incorporating tools like Internet of Things (IoT) devices and advanced irrigation systems, farmers can optimize productivity and reduce reliance on imports. Regular training sessions and access to modern equipment would empower registered farmers to adopt sustainable practices and achieve higher yields.
Research and development are vital to addressing specific challenges in Nigerian agriculture. Partnerships between private companies and government research institutes can lead to breakthroughs in crop resilience, pest control, and sustainable farming methods. For example, research into flood-resistant crop varieties or environmentally friendly fertilizers could mitigate the effects of climate change and enhance productivity. Collaboration in this area would not only improve food security but also position Nigeria as a hub for agricultural innovation.
By leveraging public-private partnerships, Nigeria has the opportunity to address its agricultural challenges systematically. Investments in infrastructure, finance, agro-processing, technology, and research can transform the sector into a sustainable and profitable enterprise. With the right policies and collaborations, the country can reclaim its position as a global agricultural powerhouse, driving economic growth and improving livelihoods.