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19ECONOMIC SCIENCES
AGRICULTURAL DEVELOPMENT OF THE FEDERAL REPUBLIC OF NIGERIA
Aigbedion E.O.,
Master 's student of the Department of Economic Theory EI «Grodno State Agrarian University»
Hanchar A.I.
Head of the Department Economic Theory EI «Grodno State Agrarian University», Grodno, Belarus
Abstract
The article analyses the Nigerian government's agricultural development policies and the problems of improving economic efficiency. The national agricultural extension system has not improved, indicating unsatisfactory service delivery to farmers. There is a significant need for regular training of local agricultural producers. The authors also cite statistics on the production efficiency of Nigeria's major crops.
Keywords: Africa, Nigeria, World, GDP, development, agricultural, Yam, Cassava, Rice, Cashew nuts.
There is no separate developed policy for agribusiness development in Nigeria, except for the brief objectives outlined in the 1988 «Agricultural Policy of Nigeria» with respect to agro-processing. The objectives of this section of the agricultural policy are formulated as follows: to broaden the demand base for agricultural
commodities and hence accelerate the growth rate of the agricultural sector; to preserve perishable agricultural products by reducing waste levels and the degree of seasonal price fluctuation; and to diversify rural employment opportunities through small-scale agricultural commodity-processing businesses [4].
Figure 1
Location ofproduction and processing of main agricultural commodities of the Federal Republic of Nigeria [4]
Agricultural development certainly contributes to job and income generation, contributes to the development of national gross domestic product and the expansion of manufacturing industry, contributes to socio-
economic development, regional stabilisation and sus-tainability, integration into global markets, and increases food self-sufficiency.
Rank Coinlry HDI value (2019) Life expectancy at birth (years) SDG3 Expected years of schooling (years) SDG 4.3 Mean years of schooling (years) SDG 4.6 Gross rational income (GNI) per capita (PPP S) SDG 8.5
1 161 Nigeria 0.534 54.7 10.0 6.7 4,910
I Côte d'Ivoire 0.538 57.8 10,0 5.3 5,069
Tanzania
Га 163 (United 0.529 65.5 8.1 6.1 2,600
Republic of)
1 Madagascar 0.528 67.0 10.2 6.1 1,596
m m 165 Lesotho 0.627 54.3 11.3 6.5 3,151
► Djibouti 0.524 67.1 6.8 4.1 5,639
— 167 Togo 0.515 61.0 12.7 4.9 1,602
a 163 Senegal 0,512 67.9 8.6 3.2 3,309
И 169 Afghanistan 0.511 64.8 10.2 3.9 2,229
■ Haiti 0.510 64.0 9.7 5.6 1,709
Figure 2 - Human Development Index (HDI) Ranking
The economy of the Federal Republic of Nigeria is one of the largest in Africa. Thanks to rising oil prices, the country's transport, construction and public service industries have grown rapidly since 1973. This lias led to a large influx of the rural population into
larger urban centres. Agricultural production gradually began to decline. Commodity crops such as palm oil, peanuts and cotton ceased to be significant export commodities [15].
Figure 3 - Population of the Federal Republic of Nigeria [10]
Since 1975, Nigeria has had to import staples such as rice and cassava for domestic consumption. These problems were offset by large oil export earnings, but from the late 1970s the agricultural sector was in constant crisis due to the fluctuating global oil market and the rapid growth of the country's population. Although
the majority of the population was still engaged in agriculture, too little was being produced, requiring increasingly costly imports. Government authorities tried to resolve the issue by banning imports of certain agricultural products, encouraging local agricultural production [15].
Figure 4
Value USÎ
Gross Output (Agriculture)
Gross Domestic Product and Gross Agriculture Output of the Federal Republic of Nigeria [10]
Nigeria has no shortage of arable land in general, but there is extreme scarcity of agricultural land in the most densely populated areas of the south-eastern states and around Kano, Katsina and Sokoto. This has forced large numbers of Igbo, Ibibio and Hausa people to migrate to other parts of the country. However, cultural
practices, such as the prohibition on selling family land, often limit access to farmland in some localities that appear to have abundant cultivable land, and in the far north, desertification has severely limited the amount of land available for cultivation [15].
Nigeria Arable land Nigeria
Land under perm, meadows and pastures
Figure 5 - Agricultural Area of the Federal Republic of Nigeria [10]
About one-fifth to half of all Nigerians live off agricultural production. Most are small-scale subsistence farmers who produce only a small surplus for sale and derive additional income from one or more cash crops and from the sale of local handicrafts. As the soil is not fully amenable to mechanised equipment, the hoe and machete continue to be the dominant farming tools. Lack of farmland in some localities and limited access
to land in others are some of the factors that limit the amount of cultivable farmland per family. Environmental degradation, poor storage facilities, poor transport systems and lack of investment capital contribute to lower productivity and overall stagnation in agriculture. With rapid population growth and accelerating urbanisation, food shortages continue to worsen despite government efforts to remedy the situation [15].
15
10
201&-2020 * Nigeria
Prevalence of undernourialinieiit (percent) (3-year average): 14. S
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Nigeria
Prevalence of undernourishment (percent) (3-year average) Figure 6 - Prevalence of undernourishment (%) (3-year average) of the Federal Republic of Nigeria [10]
The following export promotion measures are seen as most relevant to Nigeria's agricultural development, according to the World Bank Group:
1) establishing an electronic phytosanitary system to facilitate export and issuance of phytosanitary certificates locally;
2) reducing the time and cost of obtaining mandatory export documents specific to agriculture for each shipment of goods;
3) rationalization of export duties levied by the Nigeria Export Levy (NXL) and the Nigeria Export Supervision Scheme (NESS) to avoid 'double taxation' and remove bureaucratic obstacles to obtain support from the Nigerian Export Promotion Council (NEPC);
4) increased exports of agricultural commodities;
5) improving the quality of services and confidence of actors in export chains [9, p. 11].
The World Bank team has also developed some measures to support the production of one of Nigeria's main crops, rice. In particular, a strategy to improve the
competitiveness of domestic rice has been proposed. The supply response to the import ban has dried up and it is clear that trade policy alone will not improve domestic competitiveness. The advice to invest in research and development to develop high-yielding varieties and improve the quality of local rice properties (taste, aroma, texture, etc.) under local growing conditions, combined with wide dissemination of information to farmers, is indisputable. Coordinated investment between farmers and mills to expand milling capacity while improving varieties with desirable characteristics should result in improved competitiveness of Nigerian rice. It is envisaged to turn farms into full-cycle companies. which could take a long-term investment approach to asset enhancement and service delivery in critical areas such as asset enhancement and service delivery in input delivery, irrigation management, extension and marketing. Improve post-harvest drying technology used by farmers to improve rice quality and reduce post-harvest losses [9, p. 15].
Table 1.
Yam production
Year Africa Nigeria
Area harvested (ha) Yield (hg/ha) Production (tonnes) Area harvested (ha) Yield (hg/ha) Production (tonnes)
1990 2119568 97,188 20599757 1276000 106,771 13624000
1995 3077217 10,3557 31866717 2118000 107,734 22818000
2000 3885034 98,040 38088847 2647000 98,984 26201000
2005 4423267 10,7250 47439610 2868990 107,250 37328180
2010 4685206 116,226 54454100 5389870 84,748 45677939
2015 7556943 86,829 65616113 6080280 84,475 51362900
2016 8345068 86,601 72269435 6446110 83,900 54083100
2017 8816413 86,029 75846432 6067824 82,402 50000000
2018 8488986 84,499 71730960 6243881 80,163 13624000
2019 8724410 83,001 72413085 1276000 106,771 22818000
Source: FAOSTAT
Table 2.
Nigeria's share of global Yam production [10]_
Year World Nigeria
Area harvested (ha) Yield (hg/ha) Production (tonnes) Area harvested (ha) Yield (hg/ha) Production (tonnes)
1990 2247101 96,903 21774975 56,78 +9,87 62,57
1995 3237458 102,766 33269918 65,42 +4,97 68,58
2000 4033283 98,288 39642308 65,63 +0,70 66,09
2005 4927970 115,120 56730632 58,22 -7,87 65,80
2010 7745918 87,161 67514083 69,58 -2,41 67,66
2015 8536096 86,896 74175600 71,23 -2,42 69,25
2016 9001715 86,346 77726357 71,61 -2,45 69,58
2017 8686906 84,480 73387350 69,85 -2,08 68,13
2018 8910485 83,409 74321821 70,07 -3,25 18,33
2019 2247101 96,903 21774975 56,78 +9,87 104,79
Source: FAOSTAT
Market-oriented production requires real-time market information. Daily market price information can be found in newspapers for traditional export crops such as cocoa, but is completely absent for other industrial crops such as rice, sorghum, cassava, maize and horticultural crops. Many agribusiness firms and farmers cannot determine in advance where to buy or sell in
order to maximise profits and reduce marketing risks. This has created a class of market agents who have benefited from this opaque market situation and lack of information. In general, the agribusiness sector in Nigeria is uncompetitive on prices and lacks service linkages to the financial technology and export sectors, mainly due to the lack of a national market information service [4].
Figure 7 - Production/Yield quantities of Rice, paddy in Nigeria 1994 -2019 [10]
Nigeria is currently experiencing a rapid rise in food prices. Inflation in the country reaches more than 16%. Food accounts for the majority of the country's consumer price index at almost 65%. The government plans to increase food production, which should lead to lower food prices and thereby reduce the general price level in the country. Also seen as solutions are correct human resource policies in the Nigerian Ministry of Agriculture and Rural Development, changes in college curricula and giving local farmers access to improved varieties and fertilizers, as well as modernising rural production infrastructure. As in Sudan and Ethiopia, the African Development Bank (AfDB) Group for Reconstruction and Development has pledged financial
support for the measures. The bank has also expressed interest in establishing a special industrial processing zone, calling it a medium-term plan to support the sector, in order to control the movement of financial assets. Both sides have set up a working group to develop an accelerated implementation plan within the next 60 days. The creation of a cluster in a single area cannot but raise concerns for the development of the entire Nigerian agricultural industry, as it is bound to lead to certain distortions in population growth and free capital spillovers in the country. But the success of countries in Sudan and Ethiopia that have already benefited from the AfDB's lending resources gives officials confidence in such initiatives by the financial institution [2].
Table 3.
The size of Nigeria's GDP and Gross Output (Agriculture) [12]_
Year Gross Domestic Product Gross Output Value Added
(millions) (Agriculture) (Agriculture)
1990 61535.970793 - -
1995 50486.420061 - -
2000 69448.734169 - -
2005 176134.042426 - -
2010 363359.825763 113052.654049 84255.884351
2015 494582.603949 134324.926538 98409.470892
2019 474516.650002 134964.746804 99067.411241
The Nigerian government has set an ambitious target to increase the share of the agricultural sector in the country's total GDP from 23% in 2021 to 50% by 2031. The Nigerian federal government sees an increase in revenues from rice, cassava and yams entrepreneurs as
an alternative to developing the oil and gas market. The country should be the world's number one producer of Cassava and Yam by 2031 and the largest producer of rice in Africa [14].
Cassava production
Table 4.
Africa Nigeria
Year Area harvested (ha) Yield Production Area harvested (ha) Yield Production
(hg/ha) (tonnes) (hg/ha) (tonnes)
2018 18,681,232 90,826 169,673,737 6,852,857 86,789 59,475,202
2017 18,559,628 90,707 168,348,511 6,629,632 89,524 59,350,878
2016 18,769,080 92,068 172,803,904 6,167,296 96,584 59,565,916
2015 19,408,117 88,985 172,702,171 6,216,434 92,727 57,643,271
2010 13,055,762 100,185 130,798,734 3,481,900 122,155 42,533,180
2005 12,265,453 92,181 113,063,613 3,782,000 109,902 41,565,000
2000 11,019,720 86,582 95,410,924 3,300,000 97,000 32,010,000
1995 10,049,158 82,502 82,908,042 2,944,000 106,671 31,404,000
1990 8,598,674 81,777 70,317,156 1,634,130 116,533 19,043,008
Source: UNDATA
When comparing official statistics, such stated objectives appear to be a very far-reaching prospect. Statistics also show a significant loss in the yields of these crops.
Table 5.
Nigeria's share of global Cassava production
Year World Nigeria
Area harvested (ha) Yield (hg/ha) Production (tonnes) Area harvested (ha), % Yield (hg/ha), +/- Production (tonnes), %
2018 24,590,818 112,973 277,808,759 27,87 -26,18 21,41
2017 24,566,733 113,692 279,304,523 26,99 -24,17 21,25
2016 25,035,089 115,237 288,497,460 24,63 -18,65 20,65
2015 25,969,555 112,828 293,010,305 23,94 -20,10 19,67
2010 19,605,559 122,055 239,296,357 17,76 +0,10 17,77
2005 18,549,088 111,344 206,533,771 20,39 -1,44 20,13
2000 16,953,125 103,725 175,846,840 19,47 -6,72 18,20
1995 16,411,327 98,583 161,787,472 17,94 +8,09 19,41
1990 15,210,175 100,182 152,378,682 10,74 +16,35 12,50
Source: UNDATA
Nigeria has to pursue a dual strategy of transforming the cassava sector, focusing on improving the competitiveness of the industrial starch value chain and upgrading the food value chain to improve the quality of gari and high-quality cassava flour. Transforming the industrial starch value chain requires coordinated investment between researchers, farmers and the processing sector. Farmers need access to varieties that contain a high proportion of starch. They also need to produce for the specific needs of starch processors
through vertical coordination schemes. Research and development needs to be complemented by an effective management system. The transfer of clean planting material to farmers must take place with simultaneous removal of old plants infected with Cassava Mosaic Disease (CMD) and tillage, as well as effective extension so that farmers apply the right agronomic practices and proper fertilisation.
Modernisation of value chains for cassava food products should focus on supplying healthy gari and
HQCF to meet the growing demand for healthy food and to meet the needs of the flour and bakery industry, baking industry. Coordinated investment between the cassava flour milling sector and the upstream segments (farmers and researchers) can help expand the market for high quality differentiated gari products, including by supplying low-starch varieties to farmers starch and with better flavour profiles [9, p. 15].
Nigeria currently produces about 97,000 tonnes of cashew nuts a year, less than 1.7 per cent of global cashew nut production. The cashew nut sub-sector contributes less than 0.1 per cent to agricultural GDP, with
Although cashew nut production in Nigeria is expected to grow in the coming years as young trees reach maturity, the level is still well below the country's potential. Farmers need continued access to improved, high-yielding and early-maturing varieties to replace older trees. This programme requires strategic improvements in the institutional and enabling environment for agricultural production. Part of this requires strengthening and streamlining the mandates of tree crop development units (CWDUs) at federal and state levels, as well as the Cocoa Research Institute of Nigeria (CRIN). At present, there is no specific policy on cashew production and no strategy to promote the commodity. In contrast, Vietnam, a major cashew producer,
a gross production value of US$15 million in 2018, a small fraction of Vietnam's US$4.2 billion gross production value. The value of cashews has been estimated at US$1.5 billion. Globally, cashews are grown in most tropical countries around the world. However, most commercial cashew production is concentrated in Southeast Asia, West Africa, East Africa and Brazil. The five major producers of cashew nuts are Côte d'Ivoire, India, Vietnam, Benin and the Philippines [9, p. 84].
Table 6.
has developed an industry-specific policy strategy to guide all aspects of cashew nut industry development. Production support for Vietnamese farmers has focused on providing high-yielding and early-ripening varieties to replace aging trees. In addition, the Vietnamese cashew industry has developed standards for the RCN trade. These standards provide the basis for grading and quality testing to support trade and dispute resolution for raw cashew nuts. It is intended to help the Vietnamese cashew industry to adapt to market demand by improving the quality and safety managing the quality and safety of RCN imports. It seems entirely appropriate to apply similar measures in the Nigerian context [9, p. 96].
Table 7.
Year World Nigeria
Area harvested (ha) Yield (hg/ha) Production (tonnes) Area harvested (ha), % Yield (hg/ha), +/- Production (tonnes), %
1990 1,763,330 46,90 826,939 2,84 13,10 3,63
1995 2,323,369 49,40 1,147,731 6,67 11,89 8,28
2000 3,303,615 56,73 1,874,152 7,84 123,19 24,86
2005 4,104,348 60,18 2,470,025 7,53 132,05 24,05
2010 5,131,189 59,64 3,060,225 7,45 147,34 25,87
2015 6,224,551 54,85 3,413,875 2,11 19,01 2,85
2016 5,734,496 55,41 3,177,373 2,46 14,21 3,09
2017 6,278,983 58,54 3,675,485 0,00 12,89 2,72
2018 7,312,357 55,97 4,092,959 0,00 15,46 2,44
2019 7,091,275 55,85 3,960,680 0,00 15,58 2,52
Source: FAOSTAT
Cashew nuts (with shell) production
Year Africa Nigeria
Area harvested (ha) Yield (hg/ha) Production (tonnes) Area harvested (ha) Yield (hg/ha) Production (tonnes)
1990 306,450 41,40 126,858 50,000 60,00 30,000
1995 669,912 45,87 307,270 155,000 61,29 95000
2000 1,157,001 76,47 884,749 259,000 179,92 466000
2005 1,672,051 72,63 1,214,473 309,000 192,23 594000
2010 2,441,826 69,74 1,702,877 382,509 206,98 791726
2015 3,705,395 48,07 1,781,213 131,529 73,86 97149
2016 3,220,289 50,78 1,635,149 141,175 69,62 98291
2017 3,946,505 54,44 2,148,339 140,000 71,43 100,000
2018 4,940,844 48,50 2,396,121 140,000 71,43 100,000
2019 4,704,272 49,62 2,334,405 140,000 71,43 100,000
Source: FAOSTAT
Nigeria's share of global Cashew nuts (with shell) production
It should be noted that the above measures to improve the production efficiency of the crops considered in the study, including those considered by the World Bank team, have been described and proposed earlier in studies of A.E. Agwu, C.C. Asiabaka, S. Morse, M. Owens [1; 3; 5; 7; 8]. As noted by A. Aphunu, C.S.O. Otoikhian, there is a yawning gap between theoretical strategies and the application of many impressive research results on the ground, and hence no tangible impact on overall agricultural production. The prerequisites for the effectiveness of extension agents are communication skills, attitude towards extension work, frequency of contact with farmers and local responsibility chosen by farmers. In 2008, the scientists recorded in their study that the National Agricultural Extension System had not improved, documenting unsatisfactory service delivery to farmers, especially after World Bank funding ceased, hence there is such a significant need for regular training in the form of seminars, workshops and on-the-job training for extension agents so that they can acquire sound domain knowledge and experience to improve their performance. Also in 2008, it was recommended that the government mobilise local funds and allocate more funds for ADPS to enhance their activities in terms of transport and logistics facilities and maintenance materials, and improve the frequency of consultant visits [6, p. 165-167].
Our study thus shows the persistence of the challenges facing the agricultural sector of the Nigerian economy, the repetitiveness of methods to improve the economic performance of local farmers, the lack of funding for education programmes, the absence of real planned development programmes even for competing export crops in world markets.
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