FG seeks private sector boost for sustainable agriculture amid rising food costs

The Federal Government of Nigeria is actively seeking private-sector support to address agricultural production challenges and enhance food security.

Minister of Agriculture and Food Security, Abubakar Kyari, emphasized this in a virtual address at the Food and Energy Security in Africa Conference, held in Lagos and organized by White & Case in collaboration with the African Development Bank and the Nigerian Sovereign Investment Authority.

Kyari highlighted the critical role private businesses can play by investing in advanced technology, infrastructure, and processing within Nigeria’s agricultural sector. “The private sector holds the key to unlocking much of Nigeria’s agricultural potential,” he noted. However, he acknowledged the risks associated with agriculture investments and assured businesses that the government is working on policy reforms, credit guarantees, and insurance to create a more secure investment environment.

Kyari also invited investors to explore renewable energy solutions, such as solar-powered irrigation, to help tackle energy and food security challenges. “To achieve food security, collaboration is essential. No single entity can tackle this alone,” Kyari stated, urging a unified approach from the government, financial institutions, private companies, and civil society.

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Attorney General and Minister for Justice, Lateef Fagbemi, also addressed the conference, underscoring the importance of the rule of law in supporting a stable investment environment. “For any investor, a clear commitment to the rule of law is crucial,” he emphasized.

Deji Adegoke, Partner and Head of Africa Practice at White & Case LLP, highlighted Africa’s agricultural paradox: while holding 60% of the world’s arable land, Africa contributes only 10% to global agricultural output. He urged more funding and action to bridge this investment gap, especially in Nigeria, which has significant agricultural potential.

The event comes as Nigeria faces soaring food inflation, which rose nearly 40% year-on-year in October, impacting both consumers and the economy. African Development Bank CEO Samaila Zubairu noted that Nigeria has immense agricultural potential with millions of hectares of arable land, yet the sector remains underdeveloped. “Nigeria is a $1 trillion economy waiting to happen,” he declared, emphasizing that agriculture could be key to Nigeria’s economic future if properly leveraged.

In addition, Nigeria Sovereign Investment Authority (NSIA) CEO Aminu Umar-Sadiq discussed ongoing projects to support agriculture through backward integration, including fertilizer production and renewable energy initiatives. “Through local production strategies, we are reducing foreign dependency and boosting the economy,” he said.

With these collective efforts, Nigeria aims to bolster food security, support economic growth, and create a resilient agricultural sector capable of benefiting West Africa as a whole.