Nigeria Agriculture Sector Records Poor $95M Foreign Investments in 2022

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Nigeria agriculture sector saw a total of $95.8 million foreign investments in 2022, according to a report by the National Bureau of Statistics (NBS). It saw the most investments in the second quarter with $57.41 million flowing into the sector from outside. Meanwhile, the previous sector recorded the lowest for the year, with $1.76 million.

Compared to other sectors, the agricultural sector saw only 1.8% of the total foreign investments for the whole year.

The banking sector enjoyed the largest share of foreign investments in 2022, at more than $2 billion ( or 39.16%). Production and financing were also heavily invested in during the year, recording $958.42 million (or 18%) and $791.17 million (or 14.8%), respectively.

Nigeria agro sector has always suffered from several problems, of which lack of financing is a big problem. For example, it only got 1.25% of the 2022 national budget. This is despite its importance to nutrition and contribution to the GDP. Its other option would be turning to outside investments. Although, as the numbers show, it is not making much headway in that regard.

Nigeria president seat with spotlight on the table
Agricultural sector got less portion of the Nigerian national budget in 2022 than 2021. Image Source: TheCable.

Nigeria agricultural sector Foreign investments dropped YoY

In fact, the numbers from just a year apart shows that the sector is doing worse in securing financing. In 2021, the Nigeria agricultural sector cooped $366.07 million out of the total $6.7 billion invested in the country, as the NBS Capital Importation report showed.

Apart from the 73.84% difference in the value of foreign investments the agro industry received between 2022 and 2021, the difference in the portion of foreign investments it secured is also interesting. Compared to the 1.8% it got, the sector received a higher 5.5% the previous year.

There was a significant drop in capital importation between the two years, (2021 – $6.7 billion, 2022 – $5.3 billion). However, there is even a more significant drop in interest in investing in the sector. The same can be seen in how the national budget allocation percentage was lower than the previous year as well.

Nigeria agricultural sector not being attractive to foreign investors and the government leaves it in a critical situation. It is hanging on by the skin of its teeth and determination of farmers.

Obinna Onwuasoanya
Obinna Onwuasoanya
Obinna Onwuasoanya is a tech reporter of over five years, fiction writer, SEO expert and an editor. He is based in Lagos, Nigeria, and was previously shortlisted for the Writivism Short Story Prize 2018.

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