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Agriculture and its Potentials for Nigeria’s Economic Diversification
By Diana Tenebe, Chief Operating Officer, Foodstuff Store
Nigeria is a nation that is blessed with arable land and a teeming youthful population. For so long the nation has been tied to the fortunes of crude oil. Oil revenues have dominated the sustenance of economic development. The overall annual GDP growth for Nigeria in 2024 is reported at 3.40%.
The oil sector’s contribution to real GDP in Q4 2024 was 4.60%, with an annual growth rate of 5.54%. The agriculture sector contributed 24.64% to real GDP in Q4 2024, and 20.97% to aggregate nominal GDP for the full year, though its growth was more modest at 1.2% to 1.76% across different quarters. The non-oil sector, which includes agriculture, contributed a substantial 95.40% to real GDP in Q4 2024, indicating a decreasing reliance on oil as the main economic driver.
Nigeria’s economy is primarily driven by its non-oil sectors, with agriculture serving as a significant foundation, even with its ongoing productivity and security hurdles. There’s optimism that agriculture could spearhead the nation’s economic diversification in the future, especially if it’s strategically developed to generate foreign exchange and government revenue.
Agriculture was the bedrock of the Nigerian economy before the oil boom. Agriculture was the undisputed mainstay of Nigeria’s economy, contributing over 60% to the Gross Domestic Product (GDP) and employing more than 70% of the population. Regions specialised in cashcrops like cocoa, palm oil, groundnuts, and rubber making Nigeria a significant global exporter. The revenue generated from these agricultural activities fueled infrastructural development, education and social amenities across the country. The oil boom in the 1970s led to a neglect of the agricultural sector and fostered an over-reliance on petrodollars and invariably led to the stifling of the development of a diversified economy.
Just weeks into office in July 2023, President Bola Ahmed Tinubu declared a national emergency on food security, signaling a commitment to transforming agriculture into a modern, productive, and resilient engine of growth. Key initiatives include the immediate release of fertilizers and grains from national strategic reserves, a harmonisation of efforts between the Ministry of Agriculture and the Ministry of Water Resources to enable all-season farming through expanded irrigation, and the proposed establishment of a National Commodity Board to stabilize food prices and strengthen reserves. The administration of President Bola Tinubu has embarked on significant reforms to position agriculture as an economic tool to drive diversification. The efforts are constantly challenged by the pervasive violence of bandits on Nigeria farmers.
One of the flagship programs is the Agro-Pocket Initiative under the National Agricultural Growth Scheme, targeting the cultivation of 750,000 hectares for staple crops like rice, maize, wheat, and cassava, providing targeted support and input vouchers to farmers. To cushion the effects of inflation, the administration also announced a 150-day suspension of duties and tariffs on essential food imports and facilitated the import of significant quantities of maize and wheat for small-scale processors. Furthermore, a new National Agricultural Extension Policy aims to deliver demand-driven, ICT-enabled, and market-oriented extension services, moving away from outdated methods.
The ambitious agricultural agenda faces a formidable adversary: widespread banditry and insecurity. Across various regions, particularly in the food-producing states, farmers are increasingly subjected to violent attacks, kidnappings, and extortion. These acts of violence have devastating consequences, forcing many farmers to abandon their farmlands, reducing cultivated areas, and disrupting the entire agricultural value chain. The fear of attack not only deters new investments but also jeopardizes the livelihoods of existing farmers, leading to reduced agricultural output and escalating food prices. The Centre for Journalism Innovation and Development (CJID) recently highlighted that “No Farmer, No Food: Attacks on Farmers Fuel Nigeria’s Hunger Crisis,” underscoring the direct link between insecurity and food insecurity.
The Tinubu administration acknowledges this critical challenge. The National Security Adviser (NSA), Mallam Nuhu Ribadu, has reiterated the government’s commitment to returning displaced farmers to their communities and farms, emphasizing that sustainable peace cannot be achieved through kinetic responses alone. There’s a recognition that addressing the root causes of violent extremism, such as poverty and lack of opportunity, through inclusive, whole-of-government, and whole-of-society solutions, including integrated agricultural approaches, is crucial. The approval of Forest Guards is also seen as a transformative measure to enhance security for farmers.
Beyond the immediate crisis of insecurity, Nigeria’s agricultural sector still grapples with a myriad of systemic challenges. These include poor access to finance, with many farmers relying on informal lenders at exorbitant rates; high production costs, exacerbated by fuel subsidy removal; inadequate infrastructure, leading to significant post-harvest losses; and the impacts of climate change, such as erratic rainfall patterns and floods. Experts advocate for sustained investment in agricultural infrastructure, including irrigation systems, storage facilities, and rural road networks, to reduce post-harvest losses and improve market access.
Despite these hurdles, the potential for agriculture to drive Nigeria’s economic diversification remains immense. By focusing on value addition through agro-processing, leveraging modern agricultural technology (precision farming, irrigation, biotechnology, satellite imagery for yield prediction), diversifying crop production beyond traditional cash crops to include high-demand items, and investing in livestock and aquaculture, Nigeria can unlock significant economic growth. Public-private partnerships and accessible financial solutions, coupled with robust policy reforms, are vital to support smallholder farmers and attract necessary investments.
The journey beyond oil will be long and arduous, but agriculture offers Nigeria a tangible and sustainable path to economic resilience. President Tinubu’s reforms demonstrate a clear intent, but their success hinges on the government’s ability to effectively tackle the escalating violence against farmers. Without a secure environment, the seeds of diversification will struggle to take root, and the promise of a thriving agricultural sector will remain elusive. Only when farmers can work their lands in peace will agriculture truly become the robust engine Nigeria needs to diversify its economy and secure a prosperous future for its citizens.
Karex, world’s largest condom maker, plans to raise prices by up to 30 percent due to supply disruptions linked to the Iran war.
This means that safe sex could get more expensive if the war continues to disrupt global supply chains, according to Goh Miah Kiat, CEO, Karex.
Kiat told old Reuters that rising freight costs and shipping delays have increased demand and forced the company to pass costs to customers.
Broader supply chain issues and higher oil prices could impact many everyday products that rely on petrochemicals.
“The situation is definitely very fragile, prices are expensive… We have no choice but to transfer the costs right now to the customers,” Goh told Reuters.
Karex joins a growing list of companies that are bracing for supply chain disruptions amid the ongoing war in Iran.
Based in Malaysia, Karex produces condoms, personal lubricants, gloves, medical catheters and probe covers.
The company manufactures male latex condoms including ONE, Trustex, Carex and Pasante, and it can produce over 5 billion condoms annually. Karex also exports to more than 130 countries, according to its website.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said.
Federal High Court in Abuja has upheld Federal Competition and Consumer Protection Commission’s (FCCPC) authority to investigate consumer complaints and enforce regulatory oversight in Nigeria.
Tunji Bello, EVC/CEO, FCCPC
In a statement signed by Ondaje Ijagwu, director, Corporate Affairs, the Commission said that in the judgment delivered by James Omotosho on April 20, 2026, the court dismissed a suit filed by Air Peace Limited challenging the Commission’s statutory powers.
The ruling affirmed the Commission’s mandate under the Federal Competition and Consumer Protection Act, 2018 to “receive complaints, assess matters brought before it, and take appropriate lawful steps, including investigation where necessary.”
Reacting to the decision, Tunji Bello, executive vice chairman and chief executive officer of the Commission, said; “the judgment reinforces the importance of regulatory oversight in safeguarding consumers and ensuring fair market practices.”
Bello explained that the case stemmed from complaints involving “unrefunded ticket fares, cancelled flights, and other service concerns affecting passengers.”
Bello stressed that consumers who pay for services are entitled to fair treatment, transparency, and redress in accordance with applicable law.
He also said that investigations conducted by the Commission are administrative processes aimed at establishing facts.
“It does not amount to a finding of liability or wrongdoing,” he said.
The FCCPC boss further reiterated the agency’s commitment to due process and constructive engagement with businesses, noting that the Commission would continue to operate in a “fair, professional, and transparent manner.”
Bello also urged companies operating in Nigeria to cooperate with lawful regulatory procedures and strengthen internal complaint resolution mechanisms to address consumer grievances promptly.
The Commission said it will continue to act within its statutory mandate to protect consumers, promote competitive markets, and build confidence in key sectors, including aviation.
Underscoring the strength of the UK-Nigeria strategic partnership, the UK has completed its first trade and investment mission to Nigeria since the recent State Visit, focused on turning high‑level agreements into practical commercial opportunities for businesses in both countries.
Supported by the UK Department for Business and Trade and delivered by DMA Invest in partnership with the Nigeria Investment Promotion Council (NIPC), the 2-day trade mission brought together 43 delegates from 30 British companies to build partnerships, deepen commercial engagement and pursue new opportunities across priority sectors with their Nigerian counterparts.
With trade between both countries now at a record £8.1 billion, and Nigeria established as the UK’s largest export market in Africa, the mission highlighted where UK expertise can add the more value to Nigeria’s reform‑driven economy.
Opportunities discussed spanned key sectors such as infrastructure; energy and power; water, environment and climate solutions; agriculture; finance and professional services; testing and certification standards; logistics and supply chains; and technology, including education, aviation and communications.
These sectors align closely with the priorities set out under the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP) and reflect areas where UK capability, high standards and long‑term partnership approaches are well matched to Nigeria’s evolving market needs.
The mission also focused on challenging outdated perceptions of Nigeria, highlighting its shift towards a high‑potential, reforming economy, and energising businesses around new commercial opportunities supported by an improving macroeconomic outlook.
It encouraged UK and Nigerian firms to recognise complementary strengths and pursue new partnerships, reinforcing the message that both countries are open for business and natural partners for growth.
Dr Richard Montgomery, British High Commissioner to Nigeria, said: “This trade mission is a clear signal of intent. As the first UK business delegation to Nigeria since the State Visit, it shows how we are turning strong political alignment into real commercial action and long‑term partnerships for businesses in both countries.
“By bringing together UK companies and Nigerian partners across priority sectors and working closely with DMA Invest and the Nigeria Investment Promotion Council, we are backing ambition with delivery and making clear that the UK is committed, engaged and ready to do business with Nigeria for the long term.”
Aisha Rimi, Chief Executive Officer, Nigeria Investment Promotion Commission, said: “This trade mission represents a timely and strategic step in translating the renewed momentum from the UK–Nigeria State Visit into tangible investment outcomes for Nigeria. At the Nigeria Investment Promotion Commission, we are focused on facilitating partnerships that align with our national priorities and unlock value across key sectors of the economy.
The strong interest from UK companies reflects growing confidence in Nigeria’s reforms and its position as a leading investment destination in Africa. We remain committed to working closely with our partners to ensure that these engagements result in sustainable investments, job creation, and inclusive economic growth for both countries.”
Ronald Chagoury Jr. Vice-Chairman of Hitech and ITB, said: “As long-standing investors and operators in Nigeria’s infrastructure sector, Hitech and ITB are proud to support this UK–Nigeria Trade Mission and its focus on delivering tangible commercial outcomes.
“The successful close of a $1 billion ports transaction, backed by UK Export Finance, reflects both our execution capability and the strength of international partnerships when aligned with national priorities. We see this as a pivotal step in advancing Nigeria’s port infrastructure and a strong signal of confidence in the country’s reform agenda under the Renewed Hope framework.”
Atam Sandhu, Chief Executive, DMA Invest, said: “This UK–Nigeria Trade Mission demonstrates the value of bringing government, investors and delivery partners together in a structured, deal-focused environment. Our role is to convene the right stakeholders and translate strategic alignment into practical commercial outcomes.
The quality of engagement across infrastructure, energy, finance and related sectors reflects the depth of opportunity in Nigeria and the UK’s commitment to long-term partnership. We are proud to have supported this mission alongside the UK Department for Business and Trade and NIPC, and to help accelerate conversations that move projects closer to investment and delivery.”
All 43 delegates from 30 British companies participated in the UK-Nigeria Business Forum alongside senior representatives from the UK and Nigerian Governments, Nigerian businesses and the wider private sector.
The forum provided a platform for direct engagement with Nigerian companies, practical discussions, relationship‑building and the exploration of new partnerships aligned with Nigeria’s reform‑driven priorities.
This mission marks an important step in deepening the UK-Nigeria economic partnership. By strengthening relationships, building confidence and supporting deal‑making, it ensures that the momentum from the State Visit continues to translate into sustained commercial outcomes, long‑term investment and shared growth.
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