Mixed expectations on growth

• Published date: 10 January 2023
• Publication title: Nigeria - The Nation

Given its major role in providing food, employment and income growth, agriculture can impact the country's yearly gross Domestic Product (GDP) growth rates in a way that few other sectors can. But lack of finance, insecurity and poor support systems are hindering farmers from modernising and expanding their operations. Daniel Essiet reports.

The agriculture sector grew marginally last year through increased agricultural output and export volumes for some of the nation's strategic crops such as cocoa, cashew and horticultural produce.

Expectedly, analysts would want the trend to continue this year to boost production and jobs.

However, the hope that the agriculture sector will make a strong recovery this year is hinged on the ability of the economy to address challenges it faced on a number of fronts last year.

This is due to the presence of many challenges including insecurity, high costs of input, currency risk, inadequate refrigeration space and transport networks to carry produce to market in a timely manner has led to instances of spoilage.

Also, mechanisation levels have not improved, and many small-scale farmers continue to face obstacles to finance their businesses.

One of those who share this thought is the President, Federation of Agricultural Commodities Association of Nigeria (FACAN), Dr Victor Iyama. He has seen how tighter financial conditions and insecurity have weighed on farming while insecurity continue to linger.

Most stakeholders expressed concern that widespread insecurity in the Northeast and higher prices of farm input in the country are shrinking the number of hectares under food cultivation, warning that the situation would affect the productivity of farmers in the 2022/2023 wet season. Last year witnessed a significant increase in food prices as many Nigerians celebrated the yuletide season on a low profile due to declining purchasing power of consumers.

Hence, he is calling on the government to prioritise increasing domestic production to promote economic growth amid supply shocks and weakening expectations.

In driving a functional agricultural development strategy, he wants the government to targeted several existing concerns, especially issues associated with low rural incomes and poverty, including low investment, low yields, weather volatility, and climate change.

He believes the sectoral development plan should be broad, to strengthen the industry competitiveness, while promoting inclusive economic growth. His concerns are how the...