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