Fesochukwu Jason
The Federal Government of Nigeria has intensified efforts to attract private investment into the agricultural sector, as concerns grow over a significant funding gap threatening food security and productivity.
The Minister of Agriculture and Food Security, Abubakar Kyari, said Nigeria’s ability to unlock its vast agricultural potential will depend largely on mobilising private capital to complement public financing.
Despite agriculture contributing over 24 per cent to Nigeria’s Gross Domestic Product and employing a majority of the workforce, access to credit within the sector remains critically low. Current estimates indicate that agricultural financing represents less than four per cent of the sector’s total contribution to the economy—highlighting a structural imbalance that continues to limit growth.
This financing shortfall comes at a time when climate-related challenges are intensifying pressure on food systems. Rising incidents of drought, flooding, and irregular rainfall patterns are disrupting production cycles and increasing uncertainty for farmers across the country.
To address these risks, the government is promoting a shift toward climate-smart agriculture, with investments in irrigation, improved seed systems, and mechanisation forming key pillars of its strategy.
Policy interventions introduced under the administration of Bola Ahmed Tinubu include a national emergency declaration on food security and the establishment of coordinated frameworks aimed at aligning federal and subnational efforts.
Programmes such as solar-powered irrigation support, expanded mechanisation initiatives, and agro-processing zones are designed to reduce production costs, improve yields, and enhance value addition across agricultural value chains.
At the institutional level, agencies including the Bank of Agriculture and the National Agricultural Insurance Corporation are undergoing reforms to improve access to finance and reduce investment risks.
However, analysts note that without substantial private sector participation, these initiatives may fall short of delivering the scale required to transform the sector.
Key investment opportunities identified by the government include irrigation technology, cold storage infrastructure, agricultural logistics, and large-scale processing—areas seen as critical to improving efficiency and reducing post-harvest losses.
Westbridge reports that Nigeria’s agricultural transformation will ultimately depend on its ability to close the financing gap, strengthen climate resilience, and build investor confidence in a sector widely regarded as central to the country’s long-term economic stability.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.