Addressing challenges facing Nigeria's agricultural sector growth

Nigeria's economy in 2022 has seen slow growth, with the agriculture sector being a significant factor in this downturn. The sector experienced a series of challenges, primarily flooding across the country, impacting the overall GDP growth. Kola Masha, the CEO of Babban Gona, joined CNBC Africa to discuss the implications of these challenges and possible solutions moving forward. Masha highlighted the severe impact of the recent flooding on the agriculture sector, citing it as the worst in a decade. The flooding was exacerbated by actions from neighboring countries like Cameroon, further intensifying the challenges faced by farmers in several regions of Nigeria. The CEO emphasized the need for immediate recovery efforts to mitigate the damage caused by the flooding. One of the key strategies Masha advocated for was the stimulation of growth in dry season agriculture, particularly in the rice value chain. Rice production was significantly affected by the flooding due to its predominant cultivation in lowland regions that were most impacted. He urged the government to implement programs to support farmers in the dry season and ensure access to essential inputs for the upcoming season. Additionally, Masha pointed out that the agriculture sector faced a dual blow last year, with a sharp increase in input costs early in the year followed by the devastating impact of flooding. The rising cost of inputs, particularly fertilizers, posed a significant challenge to farmers, further underscoring the need for financial support and intervention. Looking ahead to the future of the agriculture sector, Masha expressed the hope for a revitalization of the industry under the new government. He stressed the importance of increasing capital flows into agriculture to drive growth and sustainability in the sector. While advocating for government support, Masha cautioned against reverting to past policies that hindered private sector participation in the agricultural value chain. The conversation also touched on the decline in agricultural exports from Nigeria, despite the sector's growth and contribution to the non-oil economy. Masha highlighted the need to diversify agricultural exports, focusing on high-demand products like organic and non-GMO produce. He emphasized Nigeria's potential to capitalize on emerging market trends and meet the increasing global demand for such products. In terms of policy priorities for the government in 2023, Masha underscored the importance of unlocking capital for farmers. Despite agriculture accounting for 30% of GDP, the sector receives less than three percent of bank debt. Masha emphasized the need to facilitate access to financial resources for farmers, as a crucial factor in driving agricultural growth and productivity. Overall, the discussion with Kola Masha shed light on the challenges facing Nigeria's agriculture sector and the necessity for proactive measures to address these issues. With a focus on recovery from recent setbacks and strategic interventions, the sector aims to regain stability and drive sustainable growth in the future.