FG Urges UK Investors to Unlock Nigeria's Vast Agricultural Potential
The Federal Government has made a compelling appeal to investors, financial institutions, and development partners from the United Kingdom to collaborate with Nigeria in realizing its ambitious vision for agriculture. This call was emphasized during the recent Nigeria-United Kingdom Investment Forum held in London, England, where the focus was on building a resilient food system, promoting climate-smart farming, and expanding sustainable agricultural production to fully unlock the nation's agricultural potential.
Highlighting Nigeria's Agricultural Strengths
Speaking at the forum, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, underscored Nigeria's significant agricultural potential. He cited the country's diverse agro-ecological zones and competitive production capabilities as key advantages. According to the Minister, Nigeria possesses the natural conditions necessary to support a wide range of agricultural value chains, including staple crops like rice, maize, and cassava, as well as cash crops such as cocoa, sesame, and sorghum, alongside horticultural products.
Senator Kyari noted that many commodities consumed in global markets can be produced competitively within Nigeria's varied agricultural landscape. However, he also addressed the pressing challenges posed by climate change, which threatens agricultural productivity and food security worldwide through prolonged droughts, erratic rainfall patterns, flooding, and desertification.
Addressing Financing Gaps and Climate Challenges
The Minister highlighted that transitioning to climate-resilient agriculture requires substantial investment, but current funding levels are insufficient to build resilient food systems, deploy climate-smart technologies, and scale innovation across agricultural value chains. He stressed that while public financing remains crucial, unlocking the necessary scale of investment will depend on stronger participation from private capital and development finance partners.
Access to finance is a major constraint for farmers across Nigeria, significantly limiting sector productivity. Despite various credit schemes, total credit accessible by farmers remains limited, reaching 3.4 trillion naira as of April 2025. Senator Kyari pointed out that this amount, while seemingly significant, represents less than 4% of agriculture's contribution to the country's GDP, underscoring the need for enhanced financial support.
Government Initiatives and Institutional Strengthening
To tackle these challenges, President Bola Ahmed Tinubu declared a national state of emergency on food security in July 2023, shortly after taking office. A year later, Vice President Kashim Shettima inaugurated the Presidential Food Systems Coordinating Unit (PFSCU) to ensure alignment of interventions across all three tiers of government.
The Federal Government has initiated several programs, including the distribution of solar-powered irrigation pumps to smallholder farmers to promote all-season farming and improve water efficiency. Additionally, to reduce investment risk and mobilize greater private capital, institutions such as the Bank of Agriculture (BoA), the Nigeria Agricultural Development Fund (NADF), and the National Agricultural Insurance Corporation (NAIC) are being strengthened.
The National Agricultural Land Development Authority (NALDA) is undergoing restructuring to enhance its capacity to support large-scale agricultural investments and land management initiatives. Furthermore, the Nigerian Agricultural Quarantine Service is being bolstered to ensure enhanced phytosanitary and zoosanitary controls, facilitating safer international trade and boosting investor confidence in Nigeria's agricultural sector.
Investment Opportunities and Collaborative Prospects
Senator Kyari emphasized numerous opportunities for investment in areas such as irrigation technologies, mechanization services, resilient seed development, cold-storage infrastructure, commodity aggregation systems, agro-processing, and agricultural logistics. He reiterated the Federal Government's commitment to creating an enabling environment for investors, with initiatives aimed at strengthening agricultural value chains and promoting sustainable agriculture.
The Minister invited UK investors to explore these opportunities, highlighting potential for collaboration through joint investment platforms, innovative credit guarantee structures, and sustainable agribusiness financing aligned with Environmental, Social, and Governance (ESG) principles. This appeal aims to foster partnerships that can drive growth and innovation in Nigeria's agricultural sector, ultimately contributing to food security and economic development.
