Foreign Investment In Agric Sector Drop By 37.9%

In apparent reflection of the numerous challenges bedeviling the agriculture sector in Nigeria, especially the problem of insecurity, foreign capital inflow into the sector fell by 37.9 percent Year-on-Year (YoY) in the half year ended June 30, 2022 (H1’22).

The heightened insecurity in most parts of the country has restricted access to farms and sacked many farming communities, making investment in the sector unattractive.

Findings from the Foreign Capital Importation report of the National Bureau of Statistics (NBS) for the second quarter to June 2022, shows that foreign capital flow to the sector fell to $59.17 million in H1’22 from $95.1 million in the corresponding period in 2021, representing a 37.9 percent decline within the period.

Also the data shows that the share of agriculture sector in the total capital inflow for the six month period declined to 1.9 percent in H1’22 from 3.4 percent in H1’21.

Farmers in Vanguard Agribusiness Roundtable had blamed insecurity and poor funding for the slow growth of the sector and called on the government to address the twin problem in order to scale up productivity and attract more investment into the sector.

Chief Adams Olu-Adebayo, Chairman, Nigeria Association of Small and Medium Enterprises (NASME), speaking at the forum, said: “When this administration came in 2015, one of its promises was to diversify Nigeria’s oil-dominated economy by investing heavily in agriculture and encouraging farming. We are in 2022, we still understand and know where we are.

“The incoming government should focus on security of lives and properties and concentrate on food production by revamping the economy through a Public-Private Partnership.”