Despite widespread agricultural activities across Nigeria, many farmers remain trapped in low returns, weak market structures and persistent post-harvest losses, raising questions about why labour in the sector has yet to translate into sustainable wealth. VICTORIA NWACHUKWU reports.
As Nigeria marked Workers' Day, conversations around labour and productivity took a critical turn in Lagos, where stakeholders at an agribusiness summit questioned the long-held assumption that hard work in agriculture naturally leads to wealth, pointing instead to structural gaps that continue to keep many farmers on the margins. The conversation formed the core of discussions at the Agriwealth Revolution Summit, convened by XtraLarge Farms and Resorts, where its founders, Dr Seyi Davids and Managing Director, Dr Moji Davids, alongside other participants, framed agriculture not merely as a production activity but as a broader economic system capable of generating long-term wealth if properly structured.
Systemic Inefficiencies in Agriculture
Central to the discussions was the argument that agriculture in Nigeria has long been driven by labour without commensurate wealth, as many farmers continue to operate within systems that reward production but fail to deliver value. The discussions pointed to a disconnect between effort and earnings, noting that while food is consistently available in markets, those responsible for its production often remain financially vulnerable due to inefficiencies across the value chain.
Beyond the broad concern about low returns, issues raised at the summit highlighted a chain of systemic inefficiencies that continue to undermine agricultural productivity and profitability. These range from poor processing practices that compromise food quality, to limited access to structured markets where producers can sell competitively, as well as weak infrastructure that makes transportation and distribution both costly and unreliable. In many cases, the result is a cycle in which farmers bear the burden of production risks, yet capture the least value, as layers of intermediaries and informal market structures determine final prices far removed from farm gate realities.
From Farming to Value Chains
It was within this context that the conversation shifted from production to structure, as Moji Davids argued that the real opportunity in agriculture lies not in farming alone but in understanding and participating in the broader value chain. She maintained that Nigeria does not necessarily lack farmers, but rather systems that enable value creation beyond the soil, stressing that wealth in agriculture is built through processing, packaging, distribution and market positioning, rather than primary production alone.
To illustrate this, she broke down what appears to be a simple meal into multiple layers of economic activity, demonstrating how a single plate of food draws from a network of producers, processors, transporters, distributors and retailers. From yam cultivation to flour processing, vegetable farming, oil production, packaging and logistics, she showed that agriculture extends far beyond cultivation, encompassing a wide ecosystem in which each stage presents an opportunity for value creation and income generation if properly organised.
Drawing from her experience, Davids recounted how early efforts at producing high-quality garri yielded little commercial success, despite meeting acceptable standards. According to her, the product initially struggled to gain traction in open markets, forcing the team to rethink its approach. The turning point came when value was deliberately added through reprocessing, branding and product differentiation, transforming the same commodity into a premium offering targeted at a defined consumer segment. The shift, she explained, not only improved demand but repositioned the product within a more structured market, highlighting the critical role of value addition and market strategy in agricultural profitability.
“The wealth in agriculture does not only lie in the crop that you are farming, but in the value addition across the chain,” she said.
Attention was drawn to distortions within agricultural markets, where significant price gaps exist between farm gate and final retail value. It was noted that while producers often sell at relatively low prices, the same goods reach consumers at multiples of their original cost due to layers of intermediaries, informal levies and logistics challenges. This imbalance leaves farmers with minimal returns despite bearing the highest production risks, reinforcing a system in which value is extracted further along the chain rather than retained at the point of production.
Reinforcing this point, Davids noted that, “the farmers themselves don't make the money; those who did not go to the farm are often the ones who make more money.”
The Business of Agriculture
Expanding on the need to reposition agriculture beyond subsistence, the Chief Executive Officer of XtraLarge Farms and Resorts, Dr Seyi Davids, emphasised that building wealth within the sector requires a deliberate shift towards treating agriculture as a structured business. He noted that while many have historically engaged in farming with the intention of passing it on to future generations, the absence of profitability and modern systems has discouraged younger people from participating, underscoring the need to rethink both approach and perception.
He outlined a set of principles he believes are critical to transforming agriculture into a viable wealth-building sector, beginning with clarity of vision and a long-term approach to enterprise. He stressed that traditional methods of production without value addition are no longer sustainable, urging participants to move beyond raw cultivation and focus on improving products through processing and innovation. According to him, profitability must remain central, as agriculture that does not generate returns ultimately discourages participation, particularly among younger entrants who are already drawn to alternative sectors.
“If you are not ready to add value, you are not starting agriculture,” he stated, adding that success in the sector depends on the ability to build systems that consistently deliver profit over time.
Davids further acknowledged the inherent risks within the sector, noting that agriculture is often unpredictable and requires resilience, consistency and disciplined reinvestment to remain viable. Rather than treating it as a quick-return venture, he advised that participants adopt a long-term perspective, building systems that can withstand losses and sustain growth over time. This, he said, includes maintaining focus within chosen areas of production, avoiding constant shifts between ventures, and ensuring that income generated is reinvested to strengthen operations rather than consumed immediately.
Agribusiness and the Promise of Returns
Beyond the structural arguments, the summit, themed: “Beyond Farming: Building Sustainable Wealth through Agribusiness, Myth or Measurable Reality,” also featured perspectives from participants, who shared their experiences within organised agribusiness models, offering insight into how investment, access to markets and product standardisation can shape outcomes in the sector. While largely anecdotal, these accounts reflected a recurring theme that structured participation, rather than isolated farming, may improve income stability and reduce exposure to some of the risks traditionally associated with agriculture.
For instance, an agribusiness leader, Amb. Paul Enakireru, described his transition from conventional investment channels into agribusiness, noting that his experience reflected more consistent returns compared to earlier ventures, although he acknowledged the importance of understanding the system before committing resources. Similarly, Agripreneur Damilola Osho, linked her involvement to both financial opportunity and improved access to food quality, while Farmer Tiwalewa Dada pointed to income gains from reinvesting proceeds across multiple agricultural ventures. Agric leader and member of the XtraLarge Farms and Resorts, Gov. Nkechi Ogbulogo, associated her engagement with the sector with expanded investment activity over time, highlighting the role of trust and perceived organisational stability in sustaining participation.
Beyond individual outcomes, discussions at the summit also pointed to broader structural issues with implications for Nigeria's food system and economy, particularly the scale of post-harvest losses and inefficiencies across the supply chain. Dr. Moji Davids noted that significant quantities of agricultural produce are lost between harvest and consumption due to poor storage, inadequate processing and weak distribution networks, effectively translating to wasted labour and lost income. She argued that addressing these gaps through coordinated systems could not only reduce waste but also create employment opportunities across multiple stages of the value chain, from processing and logistics to packaging and retail.
As conversations around labour and productivity continue in the country, the discussions at the summit underscore a growing recognition that increasing agricultural output alone may not be sufficient to improve livelihoods. Instead, the focus appears to be shifting towards building systems that connect production with value, markets and long-term investment. Whether such models can be scaled across Nigeria's largely informal agricultural landscape remains uncertain, but the emphasis on structure, coordination and value addition signals a broader rethink of how wealth can be created within the sector.
