“Nigeria needs to not only formulate policies to boost agricultural production but also establish effective mechanisms to implement them”
By Lanre Shodimu
The Nigerian food import bill has continued to skyrocket despite several reforms by the present administration aimed at ensuring local cultivation to meet the increasing needs and stem the rise of hunger in the country.
Nigeria is said to spend a whopping sum of $10 billion annually on agro-imports, including wheat and fish, as disclosed by the Minister of Agriculture and Food Security, Abubakar Kyari, recently in Lagos at the First Bank of Nigeria Ltd. 2025 Agric and Export Expo.
The minister, represented by his Special Adviser, Mr. Ibrahim Alkali, decried the rising rate of food imports and stressed the need for increased financing in agriculture to boost local production and exports.
“Nigeria spends over $10 billion annually importing food such as wheat, rice, sugar, fish, and even tomato paste.
Agriculture already contributes 35 per cent of our Gross Domestic Product and employs 35 per cent of our workforce.
“We sit on 85 million hectares of arable land with a youth population of over 70 per cent under the age of 30. Yet Nigeria accounts for less than 0.5 per cent of global agro-exports.
“Currently, the nation earns less than $400 million from agro exports. To build a non-oil export economy, we must rethink how we finance agriculture,” he said.
Kyari reiterated President Bola Tinubu’s administration’s commitment to achieving food sovereignty, insisting on the urgent need to scale up agricultural financing.
“President Tinubu has made it clear that food sovereignty is the goal. Nigeria must not only feed itself but do so on its own terms, free from excessive dependency on imports.
Sovereignty means ensuring that no Nigerian goes hungry because of shocks in global food supply chains. It means empowering every community to stand on the strength of our land, our people, and our productivity.
“Boosting domestic production and supporting exports are not separate agendas — they are two sides of the same coin.
“We have the land, the labour, and the markets. What we lack is the system of financing, value addition, and infrastructure that can turn potential into prosperity.
“The fundamentals compel us to pivot from dependence on oil rigs to resilience in food and export earnings; from raw commodity exports to value-added agribusiness; from fragmented farmer credit to structured financial systems that attract significant capital; and from stereotypes to active youth participation in agriculture,” Kyari said.
He further emphasised the need for innovative mechanisms and critical thinking to strengthen food security.
Nigeria can do better if we begin to think critically and improve mechanisms such as revenue sharing, agricultural financing with performance triggers, factoring forward contracts, Pay-as-Harvest schemes, and more.
“These are not abstract theories. They are proven models working successfully in real economies,” he added.
Nigeria to this end, needs to not only formulate policies to boost agricultural production but also establish effective mechanisms to implement them. Insecurity remains a major challenge, and ensuring that genuine farmers receive incentives and essential support is crucial. To achieve success, the government requires a think tank that can formulate effective policies and navigate bureaucratic hurdles in the sector.
FLM
