Agricultural sector value chain and government policy in Nigeria: issues, challenges and prospects

Abstract

PurposeThis paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line with the structural transformation of the sector and the Nigeria's vision 20:2020. The study also suggest strategies to upgrading various segments of the agricultural value chain and argue that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Design/methodology/approachThe authors systematically present evidences and data from the Central Bank of Nigeria (the apex monetary authority of Nigeria) and Nigerian Bureau of Statistics (oversees and publishes statistics for Nigeria) to estimate the impact of Government agricultural policies on the value chains system.FindingsThe study discovers that the various recent government policy interventions to tackle the austere challenges in the agricultural sector are yet to yield much significant solution. Given to the dwindling performance of the sector, the Nigerian agricultural value chain is somewhat affected with systemic and services gaps which underpin the market failures (missing markets and weak markets), although the agricultural value chain has the potential of triggering economic growth in a higher scale with a trickle-down effect to other sectors of the Nigerian economy.Practical implicationsOverall, the findings indicate strategies to upgrading the production and processing segments of the agricultural value chain and argues that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Social implicationsThe study proves that enhancing value addition in the agricultural sector is imperative to achieving triple-benefits of increasing productivity by building resilient systems that leverage on finance opportunities, deepening economic inclusive growth and achieving great milestones.Originality/valueThis study is the first attempt to focus on agricultural value chain system in line with the structural transformation and the Nigeria's vision 20:2020.

Strategies for improving local content development in Nigeria oil and gas industry

“…The review of literature indicated that local content development is a public policy that has been established in Nigeria, just as it is in other resource rich developing countries in Africa and other parts of the world. Nigerian markets have become increasingly globalized and vulnerable to international sectors with evidence suggesting that systemic gaps, sustainability, and short comings in the services sector being the main driver (Akanbi, 2015;Boamah, 2017;Olomu et al, 2020). It is established that local content policy is important business strategy consideration for business leaders in the Nigerian oil and gas industry.…”

“…Further research is also needed on effective strategic responses to the non-oil markets including increased entrepreneurship, more direct investment, better market segmentation, industrial upgrades, and restrictive monetary policy (Babajide, 2017;Innocent, 2017;Olomu, et al, 2020;Opeoluwa et al, 2021). Policymakers have implemented fiscal policies that are inconsistent with monetary policy resulting in asymmetries in the financial sector, which is a big component of long-run industrialization and a key driver of developing local content policies (Akanbi, 2015;Adeleye et.al, 2020).…”

“…In this vein, the president of the Federal Republic of Nigeria on April 2, 2010, signed into law the Nigerian Oil and Gas Industry Content Development Bill (NOGICDA) wherein the local content development rules, regulations, and minimum targets for various inputs into oil and gas businesses in Nigeria, and penalties for violations are defined. The literature suggests that Nigerian government and fiscal response to develop a viable alternative to the oil and gas revenues has been ineffective, intermittent, and not properly prioritized (Akanbi, 2015;Babajide, 2017;Innocent, 2017;Adeleye, et al, 2020;Olomu, et al, 2020;Opeoluwa et al, 2021); thereby, creating an opportunity for local content policies to diversify the Nigerian oil and gas sector.…”

Simulation and analyses of shea nuts (vitallaria paradoxa) processing plant using FlexSim©

“…According to the National Bureau of Statistics (NBC), Nigeria's GDP grew by 2.3% in 2019, but to the advent of the global COVID-19 Pandemic, the economy was projected to contract by the end of 2020 because of restrictions to travel and closure of business activities within the country Can & Bello (2022). Micro, Small, and Medium Enterprises (MSMEs) are key players in Nigeria's Economic Transformation and Industrialization, serving as poverty alleviation medium, increased income redistribution, Industrial diversification, and economic development Kale (2019) they constitute around 96% of Nigerian Businesses, while the manufacturing sector contributes around 7% to GDP, Non-oil sector contribution was around 96% with Agriculture having 24.64%, Industries 21.87% and services 53.49% contributions to Gross Domestic Product Olomu et al, (2020). Despite being the largest economy, the Nigerian Agricultural sector is still underutilized because of the inability to properly improve on postharvest handling and value addition, Nigeria losses an estimated 9 million USD annually due to postharvest-related losses (Abdulhakeem et al, 2021;PwC, 2017).…”

Agripreneurship and Agricultural Labour Market: Agripreneurial Intentions among Undergraduate Students in Ondo State, NigeriaAgripreneurship and Agricultural Labour Market: Agripreneurial Intentions among Undergraduate Students in Ondo State, Nigeria

“…This is because not all agribusiness ventures appropriately suite the features of agripreneurship [15], [16]. Since agripreneurship is about risk taking, therefore, in our concept of agripreneurship, opportunity is considered an integral part of what is agripreneurial driven by the desire to add value to the agricultural value chains [17]. [16] as cited in [18] defined the field of entrepreneurship as the "scholarly examination of how, by whom, and with what affects opportunities to create future goods and services are discovered, evaluated, and exploited" We consider agripreneurship to be about finding, founding and funding of a new agribusiness venture.…”