Onome Amuge
Agriculture, considered a cornerstone of Nigeria’s economic growth, continued its strong performance in the fourth quarter of 2024, accounting for 25.59 percent of the country’s total gross domestic product (GDP) in real terms, according to the National Bureau of Statistics’ (NBS) most recent GDP report.
Despite the significant impact of agriculture to Nigeria’s economy, the sector’s untapped potential remains an area of concern for industry experts, who assert that many farmers and producers are missing out on opportunities within key value chains, one being the horticulture segment.
The underutilisation of the horticulture value chain in particular is a point of contention, as industry players assert that the business value and economic potential of this sub-sector has not been fully realised, leading to missed opportunities for economic growth and diversification.
Horticulture, as defined by agronomists, refers to the practice associated with the science and technique of production, processing and merchandising of fruits,turf,shrubs, vegetables, flowers,spices,herbs for consumption and ornamental purposes. In most cases,the plants and fruits are mainly developed to enhance the beautification of home surroundings, relaxation centres with the use of colourful plants or flowers.
The global market for horticulture is poised for significant growth in the coming years, according to a market research report from Global Market Estimates (GME).
The report estimates that the global horticulture market was valued at $20.77 billion in 2021 and projects that the market will expand at a compound annual growth rate (CAGR) of 10.2 percent, resulting in an estimated market value of $40.24 billion by 2026.
The horticulture market growth is influenced by several crucial considerations, including developments in the agricultural sector and the widespread adoption of sustainable horticulture practices.
Several other growth-inducing attributes are fueling the growth of the global horticulture market, such as technological breakthroughs involving advanced robotic scouting devices and the escalating demand for protected cultivation techniques, such as greenhouses, to ensure crop safety and quality. In addition, the rising demand for organic food, the increasing adoption of greenhouse horticulture, and the increasing awareness of sustainable agricultural practices are anticipated to further fuel the market in the coming years.
A rapidly increasing global population, combined with a rising trend towards healthier food choices among health-conscious consumers, have also been identified as the prime forces driving the growth of the global horticulture market.
According to industry experts, the market represents a crucial portion of the agriculture industry and is propelled by these fundamental factors, which together have led to a dramatic surge in demand for organic food products.
Market reports show that in Europe, agro-commodity value chain players such as food processing industries, supermarket chains, and other organised market outlets have raised demand for crops sourced from horticultural outlets.
Although the horticulture sector appears promising and lucrative, its adoption among producers remains relatively low compared to other agricultural activities, a phenomenon that analysts attribute to the prevailing misconceptions among many producers that horticulture is merely concerned with ornamental plants and lacks economic viability.
However, this misconception fails to account for the diverse nature of the horticulture industry, which encompasses a wide range of activities, from food crop production to the cultivation of ornamental plants, all of which offer substantial economic benefits, including high value-added products and improved food security.
Assessing the growth and challenges of horticulture in Nigeria
The federal government, under the leadership of General Yakubu Gowon, established the National Horticultural Research Institute (NIHORT) in 1975, with the assistance of the United Nations Development Programme (UNDP) and the Food and Agriculture Organization (FAO) to promote research and demonstration activities in the areas of fruits and vegetables.
The institute is headquartered in Ibadan and under the supervisory roles of the Federal Ministry of Agriculture and Food Security (FMAFS).
The institute has been entrusted with the mandate to undertake research and development activities in a wide range of areas, including the genetic improvement, production, processing, storage, utilisation, and marketing of tropical fruits, vegetables, ornamentals, spices, medicinal, and aromatic plants that are of nutritional and economic significance
NIHORT, in its assessment of the horticulture sector, identified the pervasive issue of poverty in Nigeria as one of the major challenges facing the horticulture industry.
Speaking on the impediments faced by the horticulture sector in Nigeria,Afolayan Stephen Olaoye, the former Director of NIHORT, highlighted the presence of numerous unqualified and untrained vendors encroaching on the sector, the absence of standardized practices across industry players, and the dearth of adequate infrastructure for nursery activities as crucial barriers impeding the growth and progress of the horticulture industry in the country.
Abubakar Ahmad,a lecturer at the Department of Horticultural Technology,Federal College of Horticulture, Gombe State, in a research publication titled “Horticultural Crops in Nigeria: Challenges and the Way Forward,” noted that the horticulture sector offers a significant economic benefit to the country.
This, he explained,is hinged on the positive influence improved value chains in horticulture have both for the rural population, often working in agriculture, as well as the growing urban class that needs access to horticultural produce.
Ahmad identified lack of access to inputs such as seeds/seedlings and fertiliser as one of the challenges for achieving optimal productivity of horticultural outcomes.
The horticulture expert also stressed that low access to information and knowledge about the sector is a drawback to productivity.
In order to increase horticultural productivity and improve its business both nationally and internationally,Ahmad stated that the right information is required at the right time for strategic planning and making sound and appropriate decisions.
“This is relevant to all stakeholders in the sector, including farmers, input suppliers, processors, traders, policy makers, development partners, and researchers.
Appropriate information can sharpen opportunities, clarify market access, and enable participants to make choices regarding how to deploy scarce resources, “ he noted.
Ahmad, who described horticulture as a critical enabler of economic growth, called on the federal government to put more efforts towards equipping and engaging its institutions and bodies towards conducting research for increased horticultural productivity. He also stressed that the research results should be made available to farmers and other actors in the horticultural sector to enhance improved productivity.
According to Lazarus Kingsley, a Lagos-based horticulturist operating in Isolo, horticulture represents a lucrative and viable business opportunity in Nigeria. Kingsley, in his chat with Business A.M., identified the accessibility of the industry, stating that horticulture is not a capital-intensive venture, as a modest initial investment of N50,000 to N100,000 is sufficient to start a horticulture business.
Kingsley attributed the low number of horticulturists in the country to a lack of awareness about the business, as many individuals are not well-informed about the nature of horticulture and erroneously believe that it is solely about beautification.
He identified some of the major challenges confronting horticulture to include inadequate knowledge and technology of production, insufficient planting materials, land tenure,difficulty in accessing water/ high prices of water during the dry season and hike in prices of inputs.
To fast track the process of increased production and marketing of horticulture products for economic exploitation, Kingsley emphasised on increased awareness of the economic, medicinal and nutritional values.
Emphasising the significance of the horticulture sector in Nigeria’s economic landscape, Produce Export Development Alliance (PEDA) called on farmers and investors to seize the opportunities available in the lucrative horticulture export market and earn foreign exchange.
Adetiloye Continental, the PEDA CEO made the call during the organisation’s relaunch event recently in Lagos.
Continental spoke on the organisation’s vision of empowering farmers to take full advantage of the massive but untapped horticulture export market. This, according to him, is hindered by low compliance with quality standards among agribusinesses and farmers, limiting the sector’s potential contribution to Nigeria’s economic growth.
According to him, the global horticulture market is about $1.5 billion, yet Africa contributes only four percent to horticulture export.
“What we hope to do is to connect the vast horticultural and agribusinesses in a way that will bring about dramatic shifts in the food value chain. This connection will include logistics and service providers,” he added.
