Agriculture in Nigeria, an Overview - Part 1 - E. Etta
A History of Agriculture in Nigeria
Nigeria was more of an agricultural economy until the discovery of oil in 1956. Shell-BP (a British-Dutch multinational) made the first commercially viable oil discovery in Oloibiri, present-day Bayelsa State. By 1958, the first barrels of Nigerian crude oil were exported. Agriculture used to be a major contributor to Nigeria’s GDP, over the years however, it has witnessed a sharp decline. There was a drop in percentage contribution to the GDP from approximately 66 percent in the 1960s, 41 percent in 1999, and 23 percent in 2023. This decline is a function of so many factors. The principal of which is the discovery, and over dependence on fossil fuel (oil).
Nigeria’s population is approximately 235 million estimated for 2025. Approximately 70 percent of the population is engaged in agricultural production though most of it on a subsistence level. Nigeria's wide range of climate variations allows it to produce a variety of food and cash crops. The staple food crops include cassava, yams, corn, coco-yams, cow-peas, beans, sweet potatoes, millet, plantains, bananas, rice, sorghum, and a variety of fruits and vegetables. The leading cash crops are cocoa, citrus, cotton, groundnuts (peanuts), palm oil, palm kernel, benniseed, and rubber. They were also Nigeria's major exports in the 1960s and early 1970s until petroleum surpassed them in the 1970s.
The discovery of oil lead to a fall in production of a lot of produce that Nigeria was a leading producer of to being an importer of the same products. Why, mainly because a lot of young people in the 70’s and 80’s left family farms and rural locations to find jobs and fortune in the cities. This has led to a decrease in the production of a lot of different products.
Introduction of the Agriculture Marketplace in Nigeria
SWOT (Strengths; Weaknesses; Opportunities; Threats) Analysis of the Agriculture Industry in Nigeria
Strengths
There is a large domestic and International market for the products.
Nigeria has plenty of arable land available. Nigeria has an arable land area of approximately 34 million hectares.
The ability to grow different crops in different parts of the country.
NIgeria has a large percentage of youth that can be trained to participate in the agriculture industry.
Weaknesses
Low access to credit - small and medium scale farmers do not have enough access to credit from traditional sources and investment from private investors within the industry is not robust enough to support the majority of farmers.
Poor access to market - Nigeria’s infrastructure deficit continues to be a barrier to agricultural growth. Poor road networks hinder the transportation of produce to market.
Outdated farming techniques - the majority of farmers are still using traditional tools to cultivate their land which are not efficient for producing a large harvest.
Post-harvest losses - This can come from lack of storage facilities and refrigeration to store produce as well as an unreliable power supply hinder the storage of produce.
Lack of a stable forage base for animal husbandry which has led to conflicts between traditional fulani herders and farmers.
Low level of veterinary services
The agriculture industry does not add enough value to the agricultural products.
The devaluation of the Nigerian currency which has made everything more expensive in the economy.
Lack of investment in new technologies and infrastructure, and producers are slow to adopt existing technologies.
Opportunities
There are less taxes levied on agricultural produce thereby an incentive for people to go into farming.
Nigeria provides access to a viable and large marketplace both on the domestic and international front.
Other industries can benefit from agriculture, for example data collection organizations; drone companies; other technology firms that create products that can be used in agriculture.
There is the opportunity for producers and processors to add value to the produce and thereby get more income for themselves, especially with collaboration between the parties.
Technology is beginning to play a transformative role in Nigerian agriculture and is expected to continue to do so in 2025. Innovations such as precision agriculture, drones for crop monitoring, and mobile apps that provide weather forecasts, market prices, and farming tips are becoming more accessible to farmers.
Public-Private Partnerships (PPPs) - Public-private partnerships hold great promise for driving growth in Nigeria’s agricultural sector. How? By combining the resources and expertise of both the public and private sectors, PPPs can facilitate investments in critical infrastructure, research and development, and extension services. These partnerships can also help scale up mechanization efforts and modernize farming techniques.
There are also opportunities for investors to invest in agriculture by buying arable land and then hiring agriculture management companies to grow and manage the farms.
The African Continental Free Trade Area (AfCFTA) is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs) to create a single market for the continent. The aim is to enable the free flow of goods and services across the continent which provides an opportunity for food producers and processors in Nigeria.
Threats
Lack of security against internal threats which includes thieving of produce and violence against farmers by traditional Fulani herdsmen claiming farm property for their animals.
Inconsistent policy frameworks - The government has not been consistent and has a history of setting up policies in agriculture but not fully implementing the policies.
The devaluation of the Nigerian currency which has made everything more expensive in the economy.
Desegregation of the soil due to the effects of climate change.
Resources
African Development Bank - Nigeria
Agriculture, forestry, and fishing, value added (% of GDP) - Nigeria
Challenges And Opportunities In Nigeria’s Agricultural Sector In 2025
Food and Agriculture Organization of the United Nations
Nigeria: Distribution of gross domestic product (GDP) across economic sectors from 2013 to 2023
Nigeria Agriculture at a Glance
Problems Of Agriculture In Nigeria 2024: 8 Major Challenges
Production of Palm Oil in Nigeria from 2009 to 2023