DOES AGRICULTURE NEED INVESTMENT? NIGERIA AS A CASE STUDY

Abstract

Nigeria is blessed with large tracts of arable land which makes agriculture an important sector of the economy with high potential for employment generation, food security, and poverty reduction. The study explores the need for investment in the agricultural sector in Nigeria. Agriculture holds the largest contribution to the Nigerian economy with recent indicators for development through a short to long-term approach model. The nation’s component of economic growth is driven by agriculture with GDP growth of 25% and this lies in the role of teaming small scale farmers which account for about 80% of food production and 48% of the labor force in the country. Farmers and farming firms are partners in the supply chain, and their relationship assuages intensive research review to ascertain the level of investment and promote policies that will answer the need for investment in the agricultural sector for overall economic growth and development. Without agricultural products to trade with other countries, trade deficits would occur. The agri-food system investment is an extremely complicated scheme that constantly changes to meet current consumer demands. It also provides food and fiber for both domestic and world markets. Unfortunately, agriculture poses a particular risk, thus building an investment model with emphasis on small-scale farmers, as stakeholders in the genuine economic value chain in agriculture is essential. The level of investment in the agricultural subsector by far promotes national and international policies which increase the positive role and legitimate interest of small-scale farmers to improve indigenous technology via climate change mitigation and at least operate with relatively little government intervention. Investment in small-scale agriculture will enhance agricultural growth in Nigeria where there is an imminent fear of food insecurity in the current oil-driven economy.