By Aaron Ossai and Disun Amosun
An Agripreneur, Ouwasegun Alabi, has observed that, despite the growth in agricultural commodities export by Nigeria especially in recent years, it still suffers significant trade deficit in the sector due to imports of processed food products like Wheat, Sugar, concentrate and other commodities which Nigeria can produce in large scale.
Alabi who stated this while briefing journalists in Abuja yesterday said in 2023 alone, the value of Nigeria’s agricultural imports surpassed its exports by ₦1.037 trillion which marks the fifth consecutive year of loss to trade imbalance.
“This imbalance is primarily due to the importation of processed and finished food products, such as wheat, sugar, concentrate to mention a few, which Nigeria has the capacity to produce domestically.
“Oil may be Nigeria’s top source of foreign income, but agriculture is quietly rising as a powerful force. With Nigeria ranking fourth in the world for exports like cocoa etc, there’s huge potential waiting to be unlocked. Yet, we still import a lot of food, a sign that our farms need more support and better infrastructure.
“Agriculture remains the bedrock of Nigeria’s economy and holds immense potential to significantly increase our Gross Domestic Product (GDP). With our vast arable land, favorable climate, and a resilient labour force, Nigeria is uniquely positioned to harness agriculture for sustainable economic growth”, he said.
Alabi who is the MD CEO, Davidorlah Farms Nigeria limited said, with the right legislations and policies to boost Nigeria’s agricultural exports, the country can reduce its heavy dependence on oil and protect its economy from global price shocks.
“The foreign income from these exports can be reinvested into modern tools, better roads, and smarter farming helping our farmers grow more and earn more.
“Agriculture is the cornerstone of Nigeria’s economy and largest sector in Nigeria, contributing an average of 24% to the nation’s GDP and employing over 36% of the labour force.
“Boosting this sector can further diversify the economy, reduce dependency on the oil sector, and improve overall economic well-being significantly influencing its Gross Domestic Product (GDP), employment rates, food security, and foreign exchange (forex) inflows.
“For too long, Nigeria’s economy has leaned heavily on oil, a resource with fluctuating global prices and limited sustainability. Because of global warming, the World Bank is defunding fossil fuel projects which are now giving room to the usage of agricultural waste product in essence, turning waste into wealth.
“This has made Africa tackle this major problem by converting agricultural waste products into biofuel, biogas, bio char. This has increased the need to turn agricultural waste into useful energy in more places around the world. Today, we are reminded that the key to a resilient and prosperous Nigeria lies not beneath the soil, but on its surface in agriculture.
“The agricultural sector currently remains the most viable tool for diversifying the economy, ensuring food security, and driving foreign exchange earnings”, he added.
