INTRO: Agriculture refers to the cultivation of crops and rearing of animals for food, fiber, raw materials, and other products used to sustain and enhance human life. In economic terms, it encompasses crop production, livestock, forestry, and fishing, serving as “the major and most certain path to economic growth” for developing nations (Ogen, 2007). Within Nigeria, agriculture remains foundational despite structural shifts since the 1970s oil boom. This article examines five reasons why agriculture is important in Nigeria, drawing on macroeconomic, social, and policy analyses as follows:
1. Contribution to GDP, Employment, and Livelihoods: Agriculture is a cornerstone of Nigeria’s economy. It “accounts for about a quarter of the country’s GDP and nearly half of its workforce” (Fatai et al., 2018). Historically, it “contributed over 60% of the GDP in the 1960s” and today “contributes 26 per cent to the GDP and employs approximately 70 per cent of the workforce” (Ogen, 2007; Punch, 2024). The sector is “the single highest employer of labour in Nigeria, most especially in the rural areas” (Aikhionbare, 2016). Because “approximately 70% of Nigeria's population resides in rural areas,” agricultural growth is “more effective in reducing poverty than industrial growth” (Ehui & Tsigas, 2009). Thus, one of the core reasons why agriculture is important in Nigeria is its role in sustaining livelihoods and absorbing labour.
2. Food Security and Nutrition: Agriculture directly addresses hunger and nutrition. “The attainment of global food security and reduction of hunger hinges largely on this singular role” (FAO, 2005). Yet, “25% of the Nigerian population lack stable access to sufficient amounts of food,” and “over 14 million people or 7% of the population were reported to be undernourished, a 33% increase since 2011”. With population “expected to rise by 70.9 per cent to 401.3 million by 2050” (Punch, 2024), domestic production is critical. Nigeria “spends upwards of $10 billion annually to import essential food commodities” despite vast arable land (Punch, 2024). Therefore, food security is a key reason why agriculture is important in Nigeria.
3. Foreign Exchange Earnings and Non-Oil Exports: After hydrocarbons, agriculture is Nigeria’s main source of foreign exchange. “Agriculture is the second highest foreign exchange earner for the country,” with cocoa producing “more than 200,000 tons… per annum” (Aikhionbare, 2016). It represents “the largest share of non-oil exports in Nigeria” (Fatai et al., 2018). Strengthening the sector reduces import dependence, currently, Nigeria spends “more than $10bn each year on imports, mainly wheat, rice, sugar and fish” (Oxford Business Group, 2021), and improves trade balances. This export and forex potential is another reason why agriculture is important in Nigeria.
4. Poverty Reduction and Rural Development: Agricultural growth has disproportionate poverty impacts. Studies show “an increase in agriculture growth results in an increase in the income level of the poorest of the population,” and “$1 increase in GDP results in significantly more poverty reduction when the growth is in agriculture rather than other sectors” (Irz et al., 2001; Lipton, 2012). Agriculture also increases the incomes of majority of the population thereby strengthening their saving capacity. Because “agriculture has the most potential to lift millions of people out of extreme poverty,” it underpins rural income generation (Fatai et al., 2018). This makes poverty alleviation a central reason why agriculture is important in Nigeria.
5. Economic Diversification, Investment, and National Security: Diversifying from oil is a national priority, and “Nigeria’s agriculture sector is key to the nation’s macroeconomic evolution” (Nnanna, 2024). The 2025 federal budget allocation for agriculture “rose 127.72% to ₦826.5 billion,” signaling “political prioritisation” (BusinessDay, 2024). Vice President Kashim Shettima frames modernization as “a cornerstone of national security and economic growth,” noting Nigeria’s arable land is “so rich that if you can plant money, it can grow”. Agricultural reform also links to security: “when food becomes security” is a policy focus. Given “strong demographic and market fundamentals” and AfCFTA access, agriculture offers “scale and impact” for investors (Nnanna, 2024). Thus, economic diversification and national security are vital reasons why agriculture is important in Nigeria.
Conclusion
The reasons why agriculture is important in Nigeria span employment, food security, foreign exchange, poverty reduction, and macroeconomic stability. As Prof. Joseph Nnanna (2024) notes, the sector is “well positioned to drive inclusive growth.” Reversing “decades of neglect and mismanagement” (Punch, 2024) through investment, infrastructure, and credit reform is essential for Nigeria’s future.
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