Are you tired of the present-day economic melt-down in our country? Do you know the level of progress and great significance of agriculture in Nigeria? We will make an analysis of the agribusiness in Nigeria for you. Let's consider the main difficulties impeding the progress of agriculture in the country, and reveal the ways of solving existing problems, as well as prospects for the agricultural economics.
Agriculture in Nigeria is a significant sector in the economy of Nigeria, providing employment for 70% of the population. Most of the farms are focused on production cocoa beans. The main crops grown in Nigeria are:
- cocoa beans;
- sweet potato.
The country's livestock sector includes the breeding of pigs, cattle, donkeys, camels. Tree crop system and fishing are also developed.
The processing of agriproducts in the Nigeria is growing and is more than 24% of the country's GDP. The country administration seeks to variegate the country's economy by supporting agriculture and rural areas development. Now, agriculture yields more profits than industrial manufacture and oil production. Another goal of the governmental authorities is to lower the import of products from other countries and simultaneously lower the unemployment rate in Nigeria.
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In terms of employment, agriculture is by far the most important sector of the economy in Nigeria. Agriculture can become the main and most reliable way to sustainable development and economic advance. It covers all aspects of human activity, and also serves as the basis of humanity; Therefore, wise nations around the world give it the first place, developing and exploiting this sector.
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In 1960, before oil took the main position in the economy of the state, Nigeria was one of the most long-ranged agricultural producers in the entire world. In the period from 1962 to 1968, export crops were the major source of foreign exchange earnings in the country. Nigeria took the first place in the world for the export of palm oil, ahead of Malaysia and Indonesia, and also exported 47% of peanuts, supplying it to the US and Argentina. The status of Nigeria as an agricultural economy has dropped significantly. While Nigeria produced, and provided 18% of the world's cocoa production in 1960, now the share has fallen to 8%.
Current problems and their reasons
First, low use of fertilizer
The low level of fertilizer use is a strong obstacle to the progress of agricultural productivity in Nigeria. Since the beginning of 2000, there has been no manufacture of fertilizers in the country, as the largest company, NAFCON, the prime fertilizer manufacturer in Nigeria, was closed. Other problems affecting the domestic supply of fertilizers include high transportation costs, weak distribution infrastructure, lack of money for private sector participating in distribution, a significant part of the business is forced to import fertilizers.
Secondly, low access to agricultural loans for farming in Nigeria
Access to agricultural credit has a positive impact on agricultural productivity. However, many small farmers in Nigeria do not have access to them, because there is a corruption component. When issuing loans, a key role is played by personal relationships or the existence of a special arrangement. Such an approach dominates in the southwestern part of Nigeria.
Third, low and unstable capital expenditures in agricultural research
The participation of the private sector in agricultural research has remained insignificant up to the present. The low level of government spending on research of branches of agriculture related to a low increment of growth in agricultural productivity in other areas. When research is poorly financed, agricultural technologies cannot be improved, and there will be no increase in farm incomes, no creation of jobs in rural areas, no decline in food prices, no creation of agro-industries, and no economic growth.
Fourthly, the problem of land ownership and land degradation
The communal system of landed property in the south of the country implies the ownership of land and its inheritance within the ethnic group. The communal ownership of land in Nigeria was associated with such difficulties as the restriction of guarantees of ownership, the restriction of the mobility of farmers and the inevitable fragmentation of holdings among future heirs. In addition, the group's property restricts the rights of other people who are not related to this ethnic group.
Fifth, limited access to the market and marketing
Limited or low-quality rail transport prevents timely access to inputs, increases input costs and reduces access to markets. Expanding access to markets is likely to create demand for basic goods. High costs significantly limit the efficiency of agriculture, and also reflect the plight of transport infrastructure in the areas under investigation.
The rural economy as the "engine" of the world's economies must be rebuilt and improved. This is probable only when the government begins making a significant share of capital in the agricultural industry. Also, insurance companies, banks, cooperatives, corporate investors should be motivated to pump investments in this sector. Farmers should use these vision data that will help them succeed in a growth environment towards a sustainable private and government sector of the economy. Legislators should think about active ways of adopting economic laws that encourage and contribute to increasing agricultural productivity, as well as laws that make an enabling environment for its sustainability.
The leaders of our country support the position that agriculture can become a tool, with the help of which Nigeria can overcome the economic meltdown. Garba Shedu, the presidential spokesman, claims that agriculture can take the nation out of the todays economic challenges, and already positive results are obvious. For example, the production of rice saves our country a lot of money, and now is progressing. If to look of the figures of rice import from Thailand in 2014 and 2015, the number of tons has reduced in more than 200 times (in 2014 – 1.2 million, while in 2015 – 58,000). As per his words the government will continue to motivate and support the Ministry of Agriculture Nigeria, and such companies as WACOTT, Dangote, OLAM, and BUA Industries.
Another support expected from the side of the administration of our country is the reduction of the price of fertilizers (from N9,000 for one bag to N5,500).
Hope it is only the very beginning and Nigeria in the closest future will successfully get out from the recession. In our opinion, Nigeria's economic growth is the only real way to fully resuscitate agriculture. Investing in Nigerian agriculture will create self-reliance, economic power and independence. The progress of the farm economy will encourage the collection of revenues and prevent excessive dependence of the country on oil and gas. The economic self-reliance that the agricultural industry can offer to Nigeria will undoubtedly lead to economic as well as political independence.
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