Nigeria records poor growth in value added agriculture

The incessant campaigns by successive administrations to focus substantially on agriculture in order to diversify from oil, seem to have been executed solely on paper and by word of mouth.

A review of data from the World Bank on contributions to GDP from 2006 to 2014 has shown that while oil rents have declined for nine years consecutively, within the same period, value added agriculture also declined and only presently maintains a rather stagnated posture, despite government’s repeated campaigns to increase growth in the agro-allied sector.

Data from the World Bank which was analysed reveals the downward spin of crude oil, which has been the mainstay of Nigeria’s economy in terms of its contribution to GDP. In 2006 oil rents contributed 34.17 percent to GDP, a further decrease to 31.13 percent in 2007 and 32.03 percent in 2008 just as it did 23.73 percent in 2009 and 16.27 percent in 2010 as well as 19.04 percent in 2011 and 16.34 percent in 2012. In 2013 it was 13.49 percent and 10.84 percent in 2014.

The overall contribution of total natural resources rents to GDP has also been shed significantly, from 40.32 percent in 2006, to 12.48 percent in 2014.

Agriculture has failed to live up to expectation despite the incessant campaigns (and proclamations) by successive governments. The contribution of value added Agriculture to Nigeria’s GDP has been on a gradual decline from 2006 when it was 31.99 percent to 20.23 percent in 2014, failing to exceed 23% since 2010.

Similarly, the annual growth in value added agriculture was 7.40 percent in 2007 and after dipping to 2.93 percent in 2013 stands at 4.27 percent at the end of 2014.

This, experts believe, is unhealthy for the Nigerian economy as it strives to ensure food sufficiency, as well as diversify from oil, and more towards agriculture.

“For the past years, the various governments have just been mouthing diversification. They have just been talking, but nobody is doing anything significant in the real sense of it.

At the Federal Institute of Industrial Research (FIIRO) in Lagos, for instance, they are to help and support value addition to agric. They are for designing of equipment (in processing). But this is an institution that is there, the money that is to be used for research and development is not made available to them; the place has just been there. The average value added person in the agric sector is just struggling,” says Adeola Elliot, chairman of the Agric Group, at Lagos Chamber of Commerce and Industry.

The potentials in value added agriculture however remains enormous. Despite receding contributions to GDP, the monetary worth of value added agriculture continues to rise every year, with World Bank data showing annual increments from $46 billion in 2006, to $113 billion in 2014.

The opportunities abound and taking advantage of these will be of financial value to those savvy enough to fill the gap. Needless to say it will bring other benefits such as ensuring increased food sufficiency, as well as reducing food losses.

A visit to many open markets in Nigeria reveals the depth of loss and the plight of those involved in Nigeria’s agriculture value chain. An observation of market surroundings gives an understanding of one of the reasons behind the high cost of food. Around the stalls, under the wooden tables, along the narrow walkways, at refuse dumps around or beside the market are heaps of rotting vegetables, fruits and several high value perishable food items that constitute a major proportion of the market stock.