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THERE are two growing schools of thought when it comes to developing the agricultural sector of africa, a continent which holds about 60 percent of global uncultivated land. Both have the same goal, to ensure that the small farmer is part of the sector’s growth.
The first, headed by the africa Progress Panel (aPP), believes that the sector will succeed and grow if it is developed from the ground up – in other words by raising the productivity of smallholder farmers. This is particularly supported by Kofi annan and requires government action.
The second approach, supported by President Obama and in line with uSaId, is based on the idea of inclusive agribusiness. The emphasis is on the role of giant agribusiness companies being able to use their skills and know-how to effectively develop agricultural land whilst including and therefore ensuring small farmers also play a role in this development.
Where does a country like nigeria, with a population of 80 million and oil money flowing in for the last 25 years, stand in terms of its agricultural potential past, present and future?
Past figures and current statistics highlight a trend which must be changed. According to nasir El-Rufai, former Minister of the Federal Capital Territory in nigeria in the 1960s, agriculture contributed over 60 percent of the country’s GdP. Nigeria was the world’s second largest producer of cocoa with 15 percent of the world market, the largest exporter of palm oil with 60 percent market share, and leading exporter of groundnuts with 30 percent of the world market. The country also held dominant positions in the markets for cotton, rubber, hides and skins. although the farmers relied on rudimentary, traditional tools and methods, the sector accounted for about 70 percent of nigeria’s exports, and about 95 percent of the domestic food consumption.
The former minister nonetheless views the oil boom as having a negative impact on the country’s agricultural leverage: “The oil boom of the 1970s spelled doom for agriculture in two ways - the overvaluation of the naira (nigerian currency) made our exports less competitive, and imports cheaper - a trend that has continued to date. In 1990, we spent $430 million on food imports; in 2000, we spent $1.25 billion and last year nigeria spent $4.2 billion to import food. demand has gone up with growing population, rural-urban migration and changing tastes as we moved from traditional staples to foreign grown foods.”
Today nigeria has about 50 million people involved in agriculture, with abundant arable land and water resources. Yet last year, spent more than $4.2 billion to import food - n635 billion($4 billion) to import wheat; n356 billion ($2.3 billion) on rice, n217 billion ($1.4 billion) on sugar and n97 billion ($600 million) on fish – commodities the country should be exporting. nonetheless, there is a growing belief that investing in profitable, high growth and sustainable agribusiness in nigeria is an important means to drive youth employment.
Research shows that nigeria has over 80 million hectares of arable land. This accounts for about 23 percent of arable land across all of West africa. Thus, in terms of production, the potential for West africa to leap forward is immense as the region possesses not only land, but the lowest levels of irrigation in the world.
Views are changing at the national level with several key meetings being held to establish a coherent policy for the country. The Federal Government, headed by the new Minister of agriculture, adesina adewunmi, announced a supportive program toward creating a nigerian agricultural sector worth $256 billion by 2030 at the Businessday agribusiness Food Security Summit 2012. The intention is to stop food importation valued at over n1 trillion ($6.3 billion) annually and ensure a massive growth in the sector, in partnership with the private sector.
There may be two schools of thought across the world in terms of how to succeed in getting africa’s agriculture to the reach its next level, but for nigeria there is one clear realization – its dependence on food imports needs to be revised. a country with a strong heritage in agriculture and vast agricultural plains waiting to be developed has an enormous potential to re-conquer its food/agricultural independence.
(The writer is Communications Manager of EMRC – an internationally renowned organization providing a platform for Africa’s private and public sector to come together and discuss partnership opportunities -www.emrc.be)
The first, headed by the africa Progress Panel (aPP), believes that the sector will succeed and grow if it is developed from the ground up – in other words by raising the productivity of smallholder farmers. This is particularly supported by Kofi annan and requires government action.
The second approach, supported by President Obama and in line with uSaId, is based on the idea of inclusive agribusiness. The emphasis is on the role of giant agribusiness companies being able to use their skills and know-how to effectively develop agricultural land whilst including and therefore ensuring small farmers also play a role in this development.
Where does a country like nigeria, with a population of 80 million and oil money flowing in for the last 25 years, stand in terms of its agricultural potential past, present and future?
Past figures and current statistics highlight a trend which must be changed. According to nasir El-Rufai, former Minister of the Federal Capital Territory in nigeria in the 1960s, agriculture contributed over 60 percent of the country’s GdP. Nigeria was the world’s second largest producer of cocoa with 15 percent of the world market, the largest exporter of palm oil with 60 percent market share, and leading exporter of groundnuts with 30 percent of the world market. The country also held dominant positions in the markets for cotton, rubber, hides and skins. although the farmers relied on rudimentary, traditional tools and methods, the sector accounted for about 70 percent of nigeria’s exports, and about 95 percent of the domestic food consumption.
The former minister nonetheless views the oil boom as having a negative impact on the country’s agricultural leverage: “The oil boom of the 1970s spelled doom for agriculture in two ways - the overvaluation of the naira (nigerian currency) made our exports less competitive, and imports cheaper - a trend that has continued to date. In 1990, we spent $430 million on food imports; in 2000, we spent $1.25 billion and last year nigeria spent $4.2 billion to import food. demand has gone up with growing population, rural-urban migration and changing tastes as we moved from traditional staples to foreign grown foods.”
Today nigeria has about 50 million people involved in agriculture, with abundant arable land and water resources. Yet last year, spent more than $4.2 billion to import food - n635 billion($4 billion) to import wheat; n356 billion ($2.3 billion) on rice, n217 billion ($1.4 billion) on sugar and n97 billion ($600 million) on fish – commodities the country should be exporting. nonetheless, there is a growing belief that investing in profitable, high growth and sustainable agribusiness in nigeria is an important means to drive youth employment.
Research shows that nigeria has over 80 million hectares of arable land. This accounts for about 23 percent of arable land across all of West africa. Thus, in terms of production, the potential for West africa to leap forward is immense as the region possesses not only land, but the lowest levels of irrigation in the world.
Views are changing at the national level with several key meetings being held to establish a coherent policy for the country. The Federal Government, headed by the new Minister of agriculture, adesina adewunmi, announced a supportive program toward creating a nigerian agricultural sector worth $256 billion by 2030 at the Businessday agribusiness Food Security Summit 2012. The intention is to stop food importation valued at over n1 trillion ($6.3 billion) annually and ensure a massive growth in the sector, in partnership with the private sector.
There may be two schools of thought across the world in terms of how to succeed in getting africa’s agriculture to the reach its next level, but for nigeria there is one clear realization – its dependence on food imports needs to be revised. a country with a strong heritage in agriculture and vast agricultural plains waiting to be developed has an enormous potential to re-conquer its food/agricultural independence.
(The writer is Communications Manager of EMRC – an internationally renowned organization providing a platform for Africa’s private and public sector to come together and discuss partnership opportunities -www.emrc.be)