The significance of the agricultural sector in Nigeria cannot be underestimated. The sector is the second-highest contributor to the real Gross Domestic Product (GDP) among non-oil sectors in the third quarter (Q3) of 2023.
The "Renewed Hope" budget for 2024 is undergoing scrutiny for its potential implications on the agricultural industry, with a focus on the allocated funds.
The agricultural sector, ranking among the top 10 ministries with significant earmarks, receives N362.94 billion. However, this amounts to only 1.32 percent of the total budget of N27.5 trillion.
In contrast to the 2023 budget, which allotted N228.4 billion to agriculture (1.05 percent of N21.83 trillion), the 2024 budget shows a substantial increase of N134.54 billion.
Stakeholders in the agricultural sector, including ActionAid Nigeria, Small-Scale Women Farmers Organization, CAADP, CNC, and ONE, expressed dissatisfaction with the allocated fund, representing 1.32 percent of the total budget, in a joint conference held in Abuja.
Nigeria's agricultural sector holds substantial importance, ranking as the second-highest contributor to the real GDP among non-oil sectors in Q3 2023.
Despite challenges, such as heavy importation, climate change, and conflicts between herdsmen and local farmers, experts argue that the allocated budget falls short in addressing critical issues like mechanization, irrigation, storage, and research and development.
Government initiatives like the Anchor Borrowers Program and the National Agricultural Technology and Innovation Plan aim to diversify the economy away from oil, but challenges persist.
A report by the International Trade Administration reveals Nigeria's reliance on $10 billion of imports for food and agricultural production shortfalls.
Violence, armed banditry, and kidnappings have disrupted farming activities, leaving 8.4 million people in northern regions food insecure.
These challenges contribute to a surge in food inflation to 32.84 percent in November 2023, up from 24.13 percent in November 2022, exacerbating poverty.
Salihu Mustapha, Chairman of the Senate Committee on Agriculture, emphasizes the sector's potential to alleviate poverty and ensure food security in national economic policies and future budgets.
