FG Targets Private Investment to Unlock Nigeria’s Agricultural Potential

The Federal Government has intensified calls for increased private sector and international investment to transform Nigeria’s agricultural sector, citing a widening financing gap and the urgent need to build climate-resilient food systems.

Speaking at the Nigeria-United Kingdom Investment Forum in London, Minister of Agriculture and Food Security, Abubakar Kyari, emphasized that collaboration with investors, financial institutions, and development partners is critical to unlocking the full potential of Africa’s largest agricultural market.

Financing Gap

In a statement by Ezeaja Ikemefuna Head, Department of Information in the ministry, the Minister identifies limited access to finance as a major constraint hindering productivity across Nigeria’s agricultural value chain.

Despite existing credit schemes, total financing accessible to farmers stood at ₦3.4 trillion as of April 2025, representing less than four percent of agriculture’s contribution to national GDP.

Kyari noted that while public funding remains essential, scaling up investment will depend heavily on stronger private capital participation and development finance partnerships.

Climate Change Pressures Demand Urgent Action

Highlighting structural challenges, the Minister warned that climate change continues to threaten agricultural productivity in Nigeria through prolonged droughts, erratic rainfall, flooding, and desertification.

He stressed the need for a rapid transition to climate-smart farming systems capable of sustaining food production and protecting rural livelihoods.

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Agriculture currently employs nearly 70 percent of Nigeria’s labour force and contributes over 24 percent to GDP, making it a key driver of inclusive economic growth, particularly for women and youth.

Government Reforms

The Minister disclosed that President Bola Ahmed Tinubu declared a national emergency on food security in July 2023, signaling the administration’s commitment to addressing systemic challenges.

Subsequently, Vice President Kashim Shettima inaugurated the Presidential Food Systems Coordinating Unit (PFSCU) to align agricultural interventions across all levels of government.

To drive transformation, the Federal Government has rolled out key initiatives, including:

• Distribution of solar-powered irrigation pumps to support year-round farming
• Development of climate-resilient seed varieties such as drought-tolerant sorghum and flood-resistant rice
• The National Agricultural Mechanization Programme to improve farm efficiency
• The Nigeria Postharvest Systems Transformation Programme to reduce losses and improve storage
• Special Agro-Industrial Processing Zones to enhance value addition and market access

Capital inflows

To de-risk investments and attract capital inflows, the government is strengthening critical institutions, including the Bank of Agriculture, the Nigeria Agricultural Development Fund, and the National Agricultural Insurance Corporation.

Efforts are also underway to restructure the National Agricultural Land Development Authority to support large-scale farming and improve land access.

In addition, the Nigerian Agricultural Quarantine Service is being enhanced to improve food safety standards and facilitate international trade.

Investment Opportunities

Kyari outlined high-impact investment opportunities in irrigation technology, mechanization services, improved seed systems, cold storage infrastructure, agro-processing, logistics, and commodity aggregation.

He urged UK investors to leverage Nigeria’s vast agricultural resources through joint investment platforms, innovative financing models, and sustainable agribusiness initiatives aligned with Environmental, Social, and Governance (ESG) principles.

Call for Global Collaboration

The Minister reaffirmed Nigeria’s commitment to creating an enabling policy environment, integrating climate action into its agricultural strategies and strengthening land tenure systems to support investors.

He stressed that addressing climate change and food security requires collective global action.

“Nigeria has the potential, the market, and the policy direction to drive agricultural transformation,” Kyari said, calling for stronger international partnerships to bridge the financing gap and build resilient food systems.

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