News in brief:
– Nigeria agricultural sector contributed less to its GDP in Q2 2024 than the corresponding period last year.
– This declining contribution is blamed for food inflation and rising hunger levels, as insecurity in key crop-producing regions grows.
According to the latest data released by the National Bureau of Statistics (NBS), Nigeria’s agricultural sector contributed 22.61% to its gross domestic product (GDP) in the second quarter of 2024.
Although this shows an improvement from the 21.07% share it held in the preceding quarter, it was still smaller than the corresponding period last year (23.01%).
Generally, a declining contribution to the GDP means that the sector is having lesser share of its overall economic output. For an essential sector like agriculture which produces the food consumed, this downturn means declining sales and reduced production.
In addition, while food is not something that Nigerians can choose not to consume, changes in consumer behaviour in this regard can translate to eating less because of affordability. The food inflation rate backs this up with prices reaching astonishing year-on-year highs.
The Global Hunger Index (GHI) score trend shows that the country’s hunger is increasing again after falling between 2008 and 2015, and undernourishment is the leading indicator.
Another significant trend from the NBS data was the declining contribution of crop production to the agricultural sector. Although it remained the major activity in the sector, it is trending lower and has not recovered since the third quarter of 2023.
With insecurity issues in top crop producing areas of the country, the impact is beginning to rear its head in the local food sector.
