Agriculture is a sector of the Nigerian economy, [1] accounting for up to 35% of total employment in 2020. [2] According to the FAO, [3] agriculture remains the foundation of the Nigerian economy, [1] providing livelihoods for most Nigerians and generating millions of jobs. [4] [5] [6] Along with crude oil, Nigeria relies on the agricultural products it exports to generate most of its national revenue. [6] The agricultural sector in Nigeria comprises four sub-sectors: crop production, livestock, forestry, and fishing.
Nigeria has a total agricultural area of 70.8 million hectares, [7] of which 34 million hectares are arable land, [8] 6.5 million hectares are used for permanent crops, and 30.3 million hectares are meadows and pastures.
Maize, cassava, guinea corn, and yam are the major crops farmed in Nigeria, with 70% of the households engaged in crop farming. In the south, 7.3% of the households practice fishing, while 69.3% of the households own or raise livestock in northwest Nigeria. [9]
In the third quarter of 2019, before the COVID-19 pandemic, the sector grew by 14.88% year-on-year. Crop production remains the largest part of the sector. During the third quarter of 2019, the agriculture sector contributed 29.25% to the overall real GDP. [10] Between January and March 2021, agriculture contributed 22.35% of the total gross domestic product. [11] [12] [13] [14] [15]
The sector is undergoing transformation through commercialization at the small, medium, and large enterprise levels. [16] However, there are several factors in the Nigerian agricultural sector that may prevent its growth, including a land tenure system that limits access to land, the country's level of irrigation development, limited adoption of research findings and technologies, costs of farm inputs, the amount of access to credit allowed by the management of specialized institutions established for the development of the agricultural sector, the manners of fertilizer procurement and distribution, storage facility effectiveness, and the amount of access to markets.
More recently, changes in average temperatures, rainfall, climate extremes, and the growing infestation of pests and related diseases precipitated by climate change pose a challenge to the integrity of the country's agriculture system. [17] This is coupled with a dependence on rain-fed agriculture, which has made the sector vulnerable to seasonal conditions. [18]
These all contribute to agricultural productivity and post-harvest losses and waste in Nigeria. [3] Illiteracy is also one of the several factors preventing the progress and development of agriculture in Nigeria. Research has proven that most of the farmers in Nigeria have not acquired formal education. [19]
At the time of Nigeria's independence (1960), food exports made up more than 70% of the country's Gross National Product (GNP). [20] However, over the next 25 years, the situation reversed, with food items accounting for over 50% of imports. Despite having fertile land, food output in Nigeria declined, and per capita food production also decreased, leading to a more than sevenfold increase in grain imports. [21]
In the 1970s, the Nigerian government promoted the use of inorganic fertilizers to address the issue. [22] By 1990, out of Nigeria's total land area of about 91 million hectares, 82 million hectares were found to be suitable for farming, but only 42% of the cultivable area was farmed. The "bush fallow system," which involves land being left idle for a period of time to allow natural regeneration of soil fertility, was commonly used. Additionally, 18 million hectares were classified as permanent pasture, but had the potential to support crops, and most of the 20 million hectares covered by forests and woodlands were believed to have agricultural potential. [23]
Agricultural holdings are small and scattered, and farming is carried out with simple tools. Large-scale agriculture is not common. Agriculture contributed 32% to GDP in 2001.
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Livestock production is a part of Nigeria's agriculture system. In 2017, the country had about 80 million poultry birds, 76 million goats, 43.4 million sheep, 18.4 million cattle, 7.5 million pigs, and 1.4 million equids. [24] Livestock agriculture is about 5% of Nigeria's GDP, and 17% of its agriculture GDP. [25]
Meat demand has increased as economic development grows in Nigeria. [26] Animal grazing practices in Nigeria have changed due to population growth, urbanization, and changing agricultural practices. [27] [28] Traditional nomadic herding has transitioned to sedentary and intensive grazing, leading to increased pressure on forested areas. Overgrazing, particularly in fragile ecosystems such as savannas and woodland areas, has caused a loss of vegetation, soil, and biodiversity.In 2022, Nigeria produced:
In addition to smaller productions of other agricultural products, [35] Nigeria produced about 2.2 million metric tons of fish in 2008. [3]
Crops grown in Nigeria include beans, rice, sesame, cashew nuts, cassava, cocoa beans, groundnuts, gum arabic, kolanut, cocoa, maize (corn), melon, millet, palm kernels, palm oil, plantains, rice, rubber, sorghum, soybeans, bananas, and yams. [36]
In the past, Nigeria was known for the export of groundnut and palm kernel oil. However, over the years, the rate of exportation of these products has decreased. A few years ago[ clarification needed ], local Nigerian companies started exporting groundnuts, cashew nuts, sesame seeds, moringa seeds, ginger, cocoa, and other crops. [37]
The country's agricultural products fall into two main groups: food crops produced for home consumption and cash crops sold for profits and exported abroad. Prior to the Nigerian civil war, the country was self-sufficient in food, but that decreased after 1973. Bread made from American wheat replaced domestic crops as the cheapest staple food. [38] Between 1980 and 2016, yam production increased from about 5 million tonnes to 44 million tonnes. [39]
Tonnes produced in | 1980 | 2000 | 2016 |
---|---|---|---|
Maize | 612,000 [40] | 4,107,000 [40] | 764,678 [41] |
Millet | 2,824,000 [42] | 5,814,000 [42] | 1,468,668 [41] |
Guinea corn | 3,690,000 [43] | 7,711,000 [43] | 6,939,335 [41] |
Yam | 5,250,000 [39] | 26,210,000 [39] | 44,109,615 [41] |
Cassava | 11,500,000 [44] | 32,697,000 [44] | 57,134,478 [41] |
Rice, paddy | 1,090,000 [45] | 3,298,000 | 6,070,813 [41] |
Melon seed | 94,000 [46] | 345,000 [46] | 569,398 [41] |
Cocoyam | 208,000 [47] | 3,886,000 [47] | 3,175,842 [41] |
Sesame seed | 15,000 [48] | 72,000 | 460,988 [47] |
Cocoa is the largest non-oil foreign exchange, but the dominance of smallholders and lack of farm labour due to urbanization hold back production. Some other factors holding back the production of cocoa include financing, a lack of a coordinating body, and low uptake of newer varieties of seedlings to rehabilitate old and cultivate new plantations. These factors are identified by multiple stakeholders.[ citation needed ]
The challenges have displaced the country from being the second-largest producer of cocoa beans to being the fourth, overtaken by Côte d'Ivoire, Ghana, and Indonesia. In 1969, Nigeria produced 145,000 tons of cocoa beans; however, it has the potential to produce over 300,000 per year. The Nigerian Government may give more incentives to cocoa farmers to increase productivity. [38]
Rubber is the second-largest non-oil foreign exchange earner. [5] [49] Rubber is grown across different states in Nigeria, including the Edo, Delta, Ondo, Ogun, Abia, Anambra, Akwa Ibom, Cross Rivers, Ebonyi, and Bayelsa states. [50]
The palm oil industry constitutes another sector of the Nigerian economy, providing food and raw materials for the food, cosmetics, pharmaceuticals, plastics, and bio-energy industries. In Nigeria, the institute with information about oil palm is the Nigeria Institute for Oil Palm Research. The formal mandate of the institute is to conduct research into the production and products of oil palm and other palms of economic relevance and transfer its research findings to farmers. [51]
Tonnes produced in [41] | 1980 | 2000 | 2016 |
---|---|---|---|
Oil palm fruit | 5,750,000 | 8,220,000 | 7,817,207 |
Cocoa | 153,000 | 338,000 | 236,521 |
Groundnut | 471,000 | 2,901,000 | 3,028,571 |
Kola nut | 135,000 | 82,000 | 143,829 |
Ginger | 200 | 98,000 | 522,964 |
Traditional native cereals such as fonio ( Digitaria exilis and Digitaria iburua ) are still grown in the Middle Belt of central Nigeria. [52]
Other traditional native crops in Nigeria are: [52]
The government office responsible for agriculture development and transformation in Nigeria is currently the Federal Ministry of Agriculture and Rural Development. Primarily funded by Nigeria's federal government, the Ministry currently supervises almost fifty parastatals operating as either departments or agencies across the country. The Ministry has two major departments, namely the Technical and Service Departments:
The ministry is headed by Audu Ogbeh, who was appointed by President Muhammad Buhari on 12 November 2015, succeeding Akinwumi Adesina, who was elected to head Africa Development Bank. Buhari also appointed Heineken Lokpobiri as the new Minister of State for Agriculture and Shehu Ahmad as the Permanent Secretary under the newly created Ministry of Agriculture and Rural Development. [53]
In 2011, President Jonathan's administration launched the Agricultural Transformation Agenda, which was overseen by the Federal Ministry of Agriculture and Rural Development. The primary goal of the agenda was to position agriculture as a profitable business, integrate the agricultural value chain, and establish agriculture as a primary driver of Nigeria's economic growth. [54] To achieve this agenda, the government implemented several measures:
Recently, the Central Bank of Nigeria began the Anchors-Borrow program [55] to encourage the cultivation of certain crops, especially rice.
The Federal Government of Nigeria has also closed its land borders in order to curtail rice imports and encourage local production. [56] [57]
The Sustainable Development Goals in the agriculture sector in Nigeria have had an impact on the export sector responsible for the consumption and production of agricultural products in Nigeria. The exportation sector's monthly earnings have improved in four years. In January 2016, agricultural exports raked in N4.1 billion, which then rose to N25 billion by January 2017. From April 2019 to March 2020, total agriculture exports hit N289 billion for Nigeria.
Agriculture exports for the first six months of 2020 were N204.45 billion, which indicates that productivity is increasing in the sector to enable export growth. [58]
The Sustainable Development Goals have also led to the emergence of policies that have had an impact on the agriculture sector. Some of them include the Nigerian “Agricultural Promotion Policy—2016–2020”, which focuses on ensuring food security by reducing food imports. It manages institutional reforms and incentives for technological development at the local level. The Empowering Novel Agribusiness-Led Employment Program mobilizes finance for youth-led agribusiness development. Another policy is the Agricultural Credit Guarantee Scheme Act from 2016, which offers incentives to farmers and other professionals throughout the agricultural supply chain. Finally, the “Green Alternative: The Agriculture Promotion Policy” was launched in mid-2016. It was created to boost soybean and cowpea production, which were chosen for the policy's focus due to their nutritional value and export potential. [59]
The economy of Benin remains underdeveloped and dependent on subsistence agriculture and cotton. Cotton accounts for 40% of Benin's GDP and roughly 80% of official export receipts. There is also production of textiles, palm products, and cocoa beans. Maize (corn), beans, rice, peanuts, cashews, pineapples, cassava, yams, and other various tubers are grown for local subsistence. Benin began producing a modest quantity of offshore oil in October 1982. Production ceased in recent years but exploration of new sites is ongoing.
The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exports – petroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.
The economy of the Dominican Republic is the seventh largest in Latin America, and is the largest in the Caribbean and Central American region. The Dominican Republic is an upper-middle income developing country with important sectors including mining, tourism, manufacturing, energy, real estate, infrastructure, telecommunications and agriculture. The Dominican Republic is on track to achieve its goal of becoming a high-income country by 2030, and is expected to grow 79% in this decade. The country is the site of the single largest gold mine in Latin America, the Pueblo Viejo mine.Although the service sector is currently the leading employer of Dominicans, agriculture remains an important sector in terms of the domestic market and is in second place in terms of export earnings. Tourism accounts for more than $7.4 billion in annual earnings in 2019. Free-trade zone earnings and tourism are the fastest-growing export sectors. A leading growth engine in the Free-trade zone sector is the production of medical equipment for export having a value-added per employee of $20,000 USD, total revenue of $1.5 billion USD, and a growth rate of 7.7% in 2019. The medical instrument export sector represents one of the highest-value added sectors of the country's economy, a true growth engine for the country's emerging market. Remittances are an important sector of the economy, contributing $8.2 billion in 2020. Most of these funds are used to cover household expenses, such as housing, food, clothing, health care and education. Secondarily, remittances have financed businesses and productive activities. Thirdly, this combined effect has induced investment by the private sector and helps fund the public sector through its value-added tax. The combined import market including the free-trade-zones amounts to a market of $20 billion a year in 2019. The combined export sector had revenues totaling $11 billion in 2019. The consumer market is equivalent to $61 billion in 2019. An important indicator is the average commercial loan interest rate, which directs short-term investment and stimulates long-term investment in the economy. It is currently 8.30%, as of June 2021.
The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals.
The economy of Nigeria is a middle-income, mixed economy and emerging market with expanding manufacturing, financial, service, communications, technology, and entertainment sectors. It is ranked as the 39th-largest economy in the world in terms of nominal GDP, the largest in Africa and the 27th-largest in terms of purchasing power parity.
The economy of Togo has struggled greatly. The International Monetary Fund (IMF) ranks it as the tenth poorest country in the world, with development undercut by political instability, lowered commodity prices, and external debts. While industry and services play a role, the economy is dependent on subsistence agriculture, with industrialization and regional banking suffering major setbacks.
The economy of Papua New Guinea (PNG) is largely underdeveloped with the vast majority of the population living below the poverty line. However, according to the Asian Development Bank its GDP is expected to grow 3.4% in 2022 and 4.6% in 2023. It is dominated by the agricultural, forestry, and fishing sector and the minerals and energy extraction sector. The agricultural, forestry, and fishing sector accounts for most of the labour force of PNG while the minerals and energy extraction sector, including gold, copper, oil and natural gas is responsible for most of the export earnings.
Agriculture in Colombia refers to all agricultural activities, essential to food, feed, and fiber production, including all techniques for raising and processing livestock within the Republic of Colombia. Plant cultivation and livestock production have continuously abandoned subsistence agricultural practices in favour of technological farming resulting in cash crops which contribute to the economy of Colombia. The Colombian agricultural production has significant gaps in domestic and/or international human and animal sustenance needs.
Agriculture in Indonesia is one of the key sectors within the Indonesian economy. In the last 50 years, the sector's share in national gross domestic product has decreased considerably, due to the rise of industrialisation and service sector. Nevertheless, for the majority of Indonesian households, farming and plantation remains as a vital income generator. In 2013, the agricultural sector contributed 14.43% to national GDP, a slight decline from 2003's contribution which was 15.19%. In 2012, the agricultural sector provides jobs to approximately 49 million Indonesians, representing 41% of the country's total labor force.
Agriculture in Ghana consists of a variety of agricultural products and is an established economic sector, providing employment on a formal and informal basis. It is represented by the Ministry of Food and Agriculture. Ghana produces a variety of crops in various climatic zones which range from dry savanna to wet forest which run in east–west bands across Ghana. Agricultural crops, including yams, grains, cocoa, oil palms, kola nuts, and timber, form the base of agriculture in Ghana's economy. In 2013 agriculture employed 53.6% of the total labor force in Ghana.
Angola is a potentially rich agricultural country, with fertile soils, a favourable climate, and about 57.4 million ha of agricultural land, including more than 5.0 million ha of arable land. Before independence from Portugal in 1975, Angola had a flourishing tradition of family-based farming and was self-sufficient in all major food crops except wheat. The country exported coffee and maize, as well as crops such as sisal, bananas, tobacco and cassava. By the 1990s Angola produced less than 1% the volume of coffee it had produced in the early 1970s, while production of cotton, tobacco and sugar cane had ceased almost entirely. Poor global market prices and lack of investment have severely limited the sector since independence.
Benin is predominantly a rural society, and agriculture in Benin supports more than 70% of the population. Agriculture contributes around 35% of the country's gross domestic product (GDP) and 80% of export income. While the Government of Benin (GOB) aims to diversify its agricultural production, Benin remains underdeveloped, and its economy is underpinned by subsistence agriculture. Approximately 93% of total agricultural production goes into food production. The proportion of the population living in poverty is about 35.2%, with more rural households in poverty (38.4%) than urban households (29.8%). 36% of households depend solely upon agricultural (crop) production for income, and another 30% depend on crop production, livestock, or fishing for income.
Agriculture in Cameroon is an industry that has plenty of potential.
Agriculture was the foundation of the economy in Ivory Coast and its main source of growth. In 1987 the agricultural sector contributed 35 percent of the country's GDP and 66 percent of its export revenues, provided employment for about two-thirds of the national work force, and generated substantial revenues despite the drop in coffee and cocoa prices. From 1965 to 1980, agricultural GDP grew by an average 4.6 percent per year. Growth of agricultural GDP from coffee, cocoa, and timber production, which totaled nearly 50 percent of Ivory Coast's export revenues, averaged 7 percent a year from 1965 to 1980.
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. GDP per capitaArchived 4 May 2012 at the Wayback Machine grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The Gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before.
Agriculture in the Democratic Republic of the Congo is an industry in the country of the Democratic Republic of the Congo that has plenty of potential.
Tonga's economy is characterized by a large nonmonetary sector and a heavy dependence on remittances from the half of the country's population that lives abroad, chiefly in Australia, New Zealand, and the United States. Much of the monetary sector of the economy is dominated, if not owned, by the royal family and nobles. This is particularly true of the telecommunications and satellite services. Much of small business, particularly retailing on Tongatapu, is now dominated by recent Chinese immigrants who arrived under a cash-for-passports scheme that ended in 1998.
Agriculture in Sierra Leone is a significant part of the economy of Sierra Leone, with it accounting for 58 percent national Gross Domestic Product (GDP) in 2007. Two-thirds of the population of Sierra Leone are involved in subsistence agriculture.
Agriculture in Liberia is a major sector of the country's economy worth 38.8% of GDP, employing more than 70% of the population and providing a valuable export for one of the world's least developed countries. Liberia has a climate favourable to farming, vast forests, and an abundance of water, yet low yields mean that over half of foodstuffs are imported, with net agricultural trade at -$73.12 million in 2010. This was dismissed as a "misconception" by Liberia's Minister of Agriculture.
Agriculture is the main part of Tanzania's economy. As of 2016, Tanzania had over 44 million hectares of arable land with only 33 percent of this amount in cultivation. Almost 70 percent of the rich population live in rural areas, and almost all of them are involved in the farming sector. Land is a vital asset in ensuring food security, and among the nine main food crops in Tanzania are maize, sorghum, millet, rice, wheat, beans, cassava, potatoes, and bananas. The agricultural industry makes a large contribution to the country's foreign exchange earnings, with more than US$1 billion in earnings from cash crop exports.