Agribusiness: Expert Laments N5trn Annual Loss on Perishable Products
By Nafisat Bello
An expert in agribusiness, Dr Peter Anyim, has expressed worry over the state of agriculture in Nigeria as the sector remains an unfulfilled potential in the country.
He said the annual post-harvest loss of 5 trillion naira on perishable products which is due to the poor management of agribusiness in the country is not sustainable.
Speaking at the 2023 Institute of Business Development (IBD) Annual Conference and Awards held in Abuja, Dr Anyim said there are substantial opportunities in Nigeria for investors and entrepreneurs to harness the full potential of Nigeria’s agricultural productivity.
Speaking at the 7th edition of the Dialogue with the theme, “Analysing Market Trends and Opportunities for Agribusiness in Nigeria,” Dr. Ayim said that the agricultural potential of Nigeria is enormous and yet Nigeria remains a net importer of food ranging from major staples such as cereals and root crops, livestock and dairy products, fruits and vegetables etc.
“It is on record that about two years ago, between January and March 2021, agriculture contributed to 22.35% of the total Gross Domestic Product and over 70% of Nigerians engage in the agriculture sector mainly at a subsistence level,” he said.
He stated that Nigeria remains the best place to invest given its 71 million hectares of cultivatable and arable farmland, which, according to him, only 33 million are currently cultivated and usually on subsistent basis.
Noting that commercial agriculture is still a far cry, he said: “Out of the 71 million hectares, 3.14 million hectares are irrigable land and only about 220,000 hectares representing 7% is currently being utilised.
“Also, the annual post-harvest losses of perishable agriproducts translate to over five trillion naira which is about 60% of the products,” he added.
He also mentioned that agriculture has remained the largest and critical component of the nation’s economy, providing livelihoods for millions of Nigerians and contributing 24% to the GDP thereby creating employment for 36% of the country’s labour force.
Dr. Ayim explained how the expected growth in population with the estimated 300 million by 2050 – making it the third most populous country globally – may affect the demand for food and agricultural products.
He advised that as the nation faces the dual challenges of a rapidly growing population and increasing urbanisation, it is imperative to analyse the market trends and opportunities that exist within the agribusiness sector so as to inspire and attract investors, ensure food security, create jobs, and grow the economy.
“However, the government has implemented several initiatives and programmes over the years to address the situation, some of which include; the Agricultural Transformation Agenda (ATA), the Anchor Borrowers Programme and the National Livestock Transformation Plan (NLTP).
“All these efforts were made to increase agricultural productivity in order to provide sufficient quantities of food to meet domestic demand as well as an abundance of commodity crops for export in the international market, to create enabling environment for investors and agribusinesses, increase funds, provide support to farmers.
“Despite all of these contribution to the economy, Nigeria’s agricultural sector faces many challenges which impact on its productivity. Some of which include; poor land tenure system, low level of irrigation farming, high post-harvest losses, climate change, land degradation, limited financing, etc,” he said.
He further said that the country must work on agro processing, crop diversification and value chain development to be able to tap the huge potential in the agric business landscape.
