Agriculture
From The Report: Nigeria 2022
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In recent years focus has returned to agriculture as an important source of revenue for a diversified Nigerian economy. But despite the sector’s robust performance, the country remains vulnerable to food insecurity and is unable to meet domestic demand. This is explained by low levels of irrigation and an outdated land tenure system which have kept agricultural productivity low and caused post-harvest losses. Moreover, the Covid-19 pandemic has further exacerbated the challenges that were already present in the sector, as lockdowns and panic-buying not only contributed to a hike in food prices but also disrupted supply chains. Hence, plans to revitalise agriculture are expected to be centred on increasing local production and improving the value chain.

This chapter contains interviews with Mezuo Nwuneli, Managing Partner, Sahel Capital Agribusiness Managers; and Osazuwa Osayi, Co-founder and Co-CEO, Farmforte.

Articles from this Chapter

Overview

Farm to table: Plans to revitalise the industry are centred on increasing local production and improving the value chain
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Agriculture played an important role in driving Nigeria’s economic growth prior to the discovery of crude oil in 1956. Indeed, between 1962 and 1968 the main source of foreign exchange was export crops. In more recent times, focus has returned to the agriculture sector as an important source of revenue as the country seeks to diversify the economy away from oil. Following the oil price crash that put Nigeria into a recession in 2016, agriculture was the only sector that demonstrated resilience,…

Analysis

Modern practices: Agri-tech solutions boost access to financing, markets and input information, and facilitate mechanisation
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The pandemic has shone a light on vulnerabilities in the agriculture sector, and underscored the importance of ensuring food security and strengthening the agricultural chain. Some of the major problems that Nigerian farmers face include limited access to information and the market, insufficient financial support, and logistics and transport issues. However, agri-tech solutions are offering new support for farmers on these challenges. Financing As traditional financing meets less than 3% of smallholder…

Interview

Essential and agile: Mezuo Nwuneli, Managing Partner, Sahel Capital Agribusiness Managers, on funding and investments in the sector
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Interview:Mezuo Nwuneli What role can private equity play in funding agribusinesses in the country? MEZUO NWUNELI: In recent years the Nigerian banking sector has had about 3% of its loanbook geared towards the agriculture sector. This is roughly $1bn of capital in an economy where 24% of GDP comes from agriculture, so it is not a significant amount. As most of the current bank funding goes to large businesses, there is a need for alternate access to capital for players of all sizes,…

Interview

Strengthening the chain: Osazuwa Osayi, Co-founder and Co-CEO, Farmforte, on supporting small and medium-sized agri-businesses
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Interview:Osazuwa Osayi Where do you identify the remaining gaps in Nigeria’s agricultural value chain, and how can domestic players address them? OSAZUWA OSAYI: Nigeria’s agricultural space is nascent because the oil and gas sector has been at the forefront of economic development programmes for decades. Today, however, there is greater emphasis on diversification, and the improvement of agrarian activities is paramount to achieve this goal. However, a number of constraints must be overcome,…