Wednesday, July 27, 2016 10.44AM / FBNQuest Research
The federal ministry of agriculture has released a new roadmap for the sector titled the Agriculture Promotion Policy. It aims to build upon the successes of the agriculture agenda by the previous administration.
The policy identified two challenges the sector currently faces- inability to meet domestic food requirements and relatively low export volumes. To close these gaps, the government aims to partner with private investors to boost productivity in rice, wheat, maize, fish (aquaculture), dairy milk, soya beans, poultry, horticulture (fruits and vegetables) and sugar.
Based on estimates from the ministry of agriculture, Nigeria’s supply gap for rice, fish, tomatoes and wheat is 4 million tons (mt), 1.9mt, 1.4mt and 4.6mt respectively. This points towards the huge potential the sector has to offer.
For rice, insufficient chain integrations is a major issue while high cost in fish feeds has led to low aquaculture yields in the country. As for tomatoes, actual production stands at 1.5mt but about half that figure rots post-harvest.
Agriculture’s share of GDP is currently 23%. In Q1 2016, the sector grew by 3.1% y/y. Based on the new policy, the aim is to double the growth rate of agriculture against overall GDP growth on an annual basis from 2016 -2020, hence doubling agricultural household income over the same period.
To unlock the sector’s full potential, the agriculture promotion policy has prioritised areas such as access to land, soil fertility, storage, agribusiness investment development and access to finance amongst others. Constraints associated with the aforementioned would be tackled.
The ministry of agriculture will periodically publish metrics to track performance against the strategy. This should ensure accountability and proper monitoring of progress.
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