By Chidimma Oparaochaekwe
Nigeria’s agricultural sector needs more than increased food production to attract sustainable investment, as experts have called for stronger value chains, better policies, improved productivity and a shift in how agriculture is viewed as a business.
The experts said the country’s agricultural potential could be better harnessed if farmers, entrepreneurs and investors looked beyond primary production and explored opportunities in processing, aggregation, logistics, marketing, financing and other areas of the value chain.
They also stressed that farmers and agribusiness operators must understand government policies and become more involved in policy discussions, as decisions on trade, exports, taxes and agricultural commodities can directly affect investment, prices and profitability.
The stakeholders made the call at an agribusiness gathering in Victoria Island, Lagos, with the theme, “The Future of Agribusiness Leadership in Africa,” where discussions focused on investment, food security, value addition, innovation and the need to build a more resilient agricultural sector.
In his welcome remarks, CEO, Enterprise CEO, Mr Seye, said the gathering was aimed at bringing together key stakeholders to explore practical ways of strengthening agribusiness, attracting investment and improving food security. He urged participants to share knowledge, build strategic partnerships and develop sustainable solutions to challenges confronting the agricultural sector.
Speaking on theme, Mr Seye, said the “future of agribusiness leadership in Africa” depends largely on the ability of business leaders to embrace visibility, innovation and strategic partnerships.
He noted that businesses, particularly those in the agricultural sector, need to communicate their work effectively and make their achievements visible to the right audiences, adding that strong media engagement can help business owners build credibility, attract opportunities and expand their operations.
He stressed that visibility should go beyond social media, noting that business owners need to work with professional media practitioners who understand how to position their brands and communicate their stories effectively.
He added that stronger collaboration among entrepreneurs, the media and other stakeholders would help create an environment where African agribusinesses can grow, attract investment and contribute more significantly to economic development.
Immediate past Director General of the Lagos Chamber of Commerce and Industry, LCCI, Dr. Muda Yusuf, said farmers could influence government policies without necessarily contesting elections, which he noted was expensive.
Dr Yusuf urged farmers to organise themselves as interest groups and use advocacy, lobbying and the media to engage government at both the executive and legislative levels.
He said agricultural practitioners had important information that policymakers might not have, making their participation necessary in decisions affecting the sector.
He encouraged agricultural groups to engage relevant committees in the legislature and use the media to draw attention to challenges facing farmers and other players in the sector.
According to him, farmers should not wait until policies are introduced before making their concerns known, as sustained engagement with policymakers could help shape decisions affecting the industry.
On the policy environment,
Chief Executive Officer, Farm Credit NG, Africanfarmer Mogaji, urged stakeholders to pay closer attention to government decisions affecting agricultural commodities and trade.
He said businesses could lose money when they failed to understand policy changes, stressing the need for farmers, processors and other operators to engage policymakers rather than wait until policies had already affected their businesses.
Mogaji also spoke about access to grants and investment, urging young people in agriculture to focus on building sustainable businesses instead of seeking quick funding.
He said proper positioning, exposure and a clear business direction could help agribusinesses attract grants, investors and strategic partnerships.
While policy remains important, the experts also pointed to low productivity as another major challenge to agricultural investment.
Mogaji, however, stressed that grants should serve as a catalyst for growth rather than become the foundation of a business.
He Agribusinesses need sustainable revenue models that can keep them operating even when external funding is unavailable.
He also called for stronger collaboration among farmers, processors, investors, financial institutions and government agencies, saying better cooperation could improve access to finance, technology, markets and processing facilities.
He said Nigeria therefore needs a broader approach to agricultural development one that combines supportive and predictable policies with higher productivity, stronger value addition, better business planning and greater access to capital.
He also called for more active participation by farmers and agribusiness operators in policy discussions, saying a stronger connection between those producing and processing agricultural commodities and those making policies would help create a more investment-friendly sector.
In his presentation titled, “Scaling Cassava, Transforming Africa”, with case study from Agbeyewa farm, Agronomist/
Senior General Manager, Agronomy and Farms Operation, Mr Babatunde Adegbenga Akinsinde said Nigeria’s average cassava yield of about six to eight tonnes per hectare remained low compared with the yields that could be achieved through improved farming practices.
Mr Akinsinde said farmers could significantly increase production by using improved varieties, conducting soil tests, applying the right fertiliser, controlling weeds and following good agronomic practices.
He cited a farmers’ field demonstration where about 40 tonnes of cassava per hectare was achieved, showing the potential for higher productivity when the right methods are applied.
He noted that productivity was directly linked to profitability, as farmers producing low yields could struggle to recover the cost of land preparation, inputs, labour and other expenses.
Mr Akinsinde also highlighted the high cost of land clearing and the importance of access to farm equipment, noting that government support in areas such as tractors and land development could help reduce production costs for large-scale farmers.
The discussion also showed that farmers do not necessarily have to depend entirely on government support. Access to private investment, local capital and strategic partnerships can provide alternative ways to expand viable agricultural businesses.
Also speaking, Senior Consultant, Business Development & Strategic Partnerships, Kibbutz Coop, Agribusiness & AgTech, Mr. Olusegun Odebiyi, said improving agriculture also requires a change in mindset.
Mr Odebiyi said farmers and entrepreneurs should see agriculture as a business and clearly determine where they want to operate within the value chain.
According to him, people do not necessarily need to own farms to benefit from agriculture, as there are opportunities in processing, aggregation, logistics, marketing, financing and other areas.
He also stressed the importance of having a clear business model before seeking investors or partners, saying entrepreneurs need to understand the market, calculate the risks and determine how their businesses will generate returns.
He cited fluctuations in cocoa prices as an example of the risks associated with agricultural investment.
Mr Odebiyi explained that commodity prices can change significantly within a short period, making it important for investors and agribusiness operators to understand market conditions and manage their exposure to price risks.
The experts also identified value addition as an important area for investment, particularly in commodities such as cassava, cocoa and cashew.
They said producing raw commodities alone limits the economic value that can be generated from agriculture, while processing and developing finished or semi-finished products can create additional income, jobs and investment opportunities.
This, they noted, also creates opportunities for people who may not want to farm but are interested in participating in agriculture through processing, logistics, marketing, finance or other support services.
The discussion further highlighted the importance of strategic partnerships among farmers, processors, investors, financial institutions and government agencies.
On access to local capital, Founder/CEO, Psaltry International Company Limited, Mrs. Oluyemisi Iranloye, who was represented by Dr. Adekunle Olubukola, stressed the importance of positioning agribusinesses to attract funding.
Mrs Iranloye said that businesses demonstrate clear value and sustainable operations could attract grants and other forms of support, including opportunities that come directly from funding organisations.
Ultimately, the experts said agriculture must be treated as a serious business, with farmers and investors paying attention not only to what they produce, but also to how they produce it, where they sell it, how they manage risks, how they add value and where they fit into the wider agricultural value chain.
