Friday, January 17,
2020 / 6:40 PM / Nifemi Taiyese for WebTV / Header Image Credit: WebTV
In 2020 Nigeria must give top priority to Agribusiness if it is to upscale efforts to drive the non-oil sector and diversify the revenue base of the country.
Chris Ogbechie, a Professor of Strategic Management at the Lagos Business School, disclosed this in an interview with WebTV.
He argued that with abundant arable land and a diligent workforce, Nigeria needs the right policy environment to attract critical investments into the Agribusiness sector.
The scholar noted that investments in the Agric sector are long-term, which requires a financing framework from the Central Bank of Nigeria (CBN) that will galvanize Deposit Money Banks (DMBs) to support the sector with favourable interest rates.
He believed it was important to create an enabling environment that would encourage people to invest strategically in the Agric sector to stimulate economic activities that would have a long term positive effect on the economy, in terms of value creation and productivity.
"One of the reasons why we are not effectively playing in Agribusiness is the fact that we are not familiar with global standards, so you find a lot of Agricultural products from Nigeria rejected outside Nigeria," Prof Ogbechie said.
Ogbechie believed Nigeria had to address its infrastructure (road, rail and waterways) and the storage system to boost the agrarian sector and improve export value in the international market.
The Agric sector has been tipped by economists to be one of the key sectors to watch in Nigeria in 2020.
According to the National Bureau of Statistics (NBS), the Agric sector grew by 2.28% in Q3, 2019 (see illustration1 below).
Illustration 1 GDP Report Q3 2019 (Agriculture)