Calls for stronger policy support for agriculture in Nigeria are increasingly evolving beyond food security concerns toward an expanded debate about competitiveness, productivity and long-term economic transformation, as business leaders warn that the country risks missing a strategic opportunity to build a globally competitive agribusiness sector.
At a recent agribusiness outlook forum organised by the Lagos Chamber of Commerce and Industry (LCCI), industry executives, economists and policymakers argued that the central challenge facing Nigerian agriculture is no longer simply producing enough food, but creating an integrated value chain capable of delivering scale, efficiency and export competitiveness.
Agriculture accounts for more than a quarter of Nigeria’s economic output and remains one of the largest employers. However, productivity per hectare remains comparatively low, while post-harvest losses, infrastructure deficits and financing constraints continue to lower profitability.
Business leaders increasingly argue that without structural reforms, Nigeria may remain trapped in a cycle where rising production fails to translate into sustained economic gains.
Speaking at the event, Leye Kupoluyi, the LCCI president emphasised that agriculture must be repositioned as a strategic economic sector rather than treated solely as a development priority.
He argued that predictable policies on land administration, taxation, trade regulation and foreign-exchange access for agricultural machinery are essential if private capital is to scale investment.
Industry executives say inconsistent policies have historically discouraged large-scale investment, particularly in mechanisation, processing and export-oriented agribusiness ventures.
Concerns about implementation gaps were echoed by Muda Yusuf, director of the Centre for the Promotion of Private Enterprise (CPPE), who cautioned investors against relying too heavily on policy announcements without assessing execution risks.
He noted that while official rhetoric around agricultural transformation has been positive, investors frequently encounter bottlenecks ranging from financing delays to infrastructure constraints.
Yusuf argued that agriculture exhibits classic characteristics of market failure, requiring sustained government intervention through credit support, infrastructure investment and price stabilisation mechanisms.
Without such support, he warned, smallholder farmers, who account for the bulk of domestic food production, may struggle to remain viable.
Executives from multinational agribusiness groups also highlighted infrastructure deficits as a major impediment to competitiveness.
Ade Adefeko of Olam Agri stressed that Nigeria produces abundant fresh agricultural commodities but struggles with preservation, logistics and value addition.
Post-harvest losses remain substantial, particularly for perishable crops such as tomatoes and vegetables, undermining farmer incomes and reducing export potential.
Cold-chain infrastructure, rural electrification and transport networks are frequently cited as priorities for improving value retention.
Adefeko also argued that Nigeria should aim for food sovereignty, which is the ability not only to feed its population but to compete internationally in processed agricultural goods.
That ambition, he said, requires coherent policy alignment across infrastructure development, financing frameworks and regulatory clarity.
Another recurring theme at the forum was the need to integrate smallholder farmers more effectively into formal value chains.
Nigeria’s agricultural sector is dominated by small-scale producers who often lack access to financing, technology and stable markets. Without structured integration, scaling production while maintaining quality consistency remains difficult.
Industry consultant AfricanFarmer Mogaji, chief executive of X-Ray Farms Consulting, highlighted the importance of collaboration across the agricultural ecosystem.
He pointed to volatility in commodity markets such as corn and tomatoes as evidence of weak coordination between producers, processors, distributors and policymakers.
Better information-sharing, coordinated planting cycles and structured supply agreements, he suggested, could stabilise prices while improving productivity.
Nigeria currently faces a significant corn supply gap, with annual demand estimated to exceed domestic production by several million tonnes. Addressing such deficits, analysts say, requires both yield improvements and stronger market integration.
Agricultural economists have long argued that unpredictable price swings discourage investment. When commodity prices fall sharply, farmers often struggle to recover input costs, leading to reduced planting in subsequent seasons.
Proposals discussed at the forum included minimum guaranteed pricing frameworks, crop insurance expansion and commodity exchange mechanisms designed to reduce volatility.
While such interventions can be costly, proponents argue they are essential for building a resilient agricultural sector capable of attracting sustained investment.
Participants agreed that neither government nor the private sector can transform the sector alone. It was also highlighted that public investment remains critical for infrastructure, research, extension services and risk mitigation. Meanwhile, private capital and operational expertise are essential for scaling production, improving efficiency and expanding export capacity.
