Nigeria’s agriculture sector continues sluggish growth

Nigeria's agricultural sector has recently shown a modest growth rate of 0.18 percent in the first quarter of 2024, bouncing back from the negative growth of 0.9 percent in the same quarter of the previous year. This sector contributed 21.1 percent to the country's overall GDP in real terms, reflecting its importance in the economy. The Vice President of Financial Market at Afex, Oluwafunto Olasemo, shared insightful views on the sector's performance and the challenges it faces in a recent interview on CNBC Africa. Olasemo highlighted the resilience of the agriculture sector in the face of economic challenges over the years, with a consistent contribution of 20 to 25 percent to GDP. Despite the growth, critical challenges continue to threaten the sector, impacting food security and economic stability. One of the main concerns raised was the high level of post-harvest losses, with up to 60% of produced food going to waste due to poor storage facilities. The lack of infrastructure and irrigation systems further exacerbates the situation, leaving farmers at the mercy of climate changes and reducing overall productivity. These factors contribute to food insecurity and drive up commodity prices, as highlighted by the significant movements in the AFRES Commodity Index. Olasemo emphasized the need for urgent action to address these challenges, including improving transportation infrastructure, enhancing security, and implementing policies to drive sector development. Without these interventions, the pressure on both demand and prices of essential commodities is likely to persist, affecting food inflation and the average citizen's ability to afford basic necessities. As Nigeria approaches the first anniversary under the Tsunembu administration, the focus on the agricultural sector remains crucial. While efforts have been made to address the sector's challenges, it is evident that more decisive actions are needed to ensure sustainable growth and food security for the nation.