Opportunities in Nigeria ’ s Agribusiness Sector
The opportunities that agriculture presents are overwhelming , from the upstream through the downstream sectors . A look at the oil sector can show what is possible if the country were to focus on building out a strong agribusiness ecosystem .
Truly , there is no better time than now to invest in Nigeria ’ s agribusiness sector .
Agricultural value chains are very diverse .
One great advantage that the agricultural sector has over the oil sector is that oil is one product whereas a country like Nigeria can support a wide variety of agricultural products , aside fisheries and animal products .
Box 1 : AGRIBUSINESS IS BIG BUSINESS , GLOBALLY
In 2010 , Brookfield Agriculture Group found that farming accounts for only 22 % of the global value added in all agricultural value chains . Upstream and downstream activities account for the other 78 %. |
15 %
15 %
22 %
|
25 %
23 %
|
Retail Input Supply Farming Logistics Processing |
Source : Brookfield Agricultural Group 2010 ; culled from Africa Development Bank ’ s Africa Competitiveness Report , 2017 . |
|
|
|
Each product can have its own value chain and so on . When viewed from this perspective , the picture becomes a bit clearer .
Strong demand in the domestic and global markets is likely to continue .
As countries race to secure their food supply , demand is on the rise and the global commodity market is thriving . It is estimated that urban food markets will exceed $ 400 billion by 2030 . On the regional scene , the recent Africa free trade agreement opens up a new market opportunity that previously didn ’ t exist . With ongoing demographic changes , urbanization , among other factors , the opportunities for a strong agribusiness sector cannot be doubted .
12 The Export Brief | MAY 2018 | IEOM-NG . ORG