News in brief:
– Nigeria spent $10 billion on food imports in 2023, with $3 billion going toward grains like maize, wheat, and corn.
– There are ongoing efforts to finance the sector including a fund for 20,000 women farmers at low interest rates to boost food production.
The African Development Bank Group (AfDB) revealed that Nigeria’s food import bill reached a staggering $10 billion in 2023, with grains alone accounting for $3 billion.
Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser to Nigeria’s President on Industrialization, shared these figures at the 2024 Agriculture Summit Africa (ASA) held in Abuja. Despite abundant arable land and natural resources, Nigeria relies heavily on imported cereals, fish, and other foodstuffs.
Nigeria’s dependency on food imports stems from insufficient domestic food production. While the country has over 84 million hectares of arable land, only 40% is cultivated. Oyelaran-Oyeyinka explained that factors like limited industrial infrastructure, a lack of modern agricultural methods, and political challenges hinder Nigeria’s self-sufficiency.
Sterling Bank’s CEO, Abubakar Suleiman, took the opportunity to announce a commitment of over $33 million to support women in agriculture, offering loans with single-digit interest rates. This initiative is part of a larger effort to finance and empower local farmers, especially women, to reduce the nation’s dependence on food imports
To address food insecurity, Prof. Oyelaran-Oyeyinka emphasised the need for a Green Revolution in Africa. He highlighted that many industrialised nations overcame food shortages through large-scale production, modern technology, and efficient supply chains. Achieving this in Nigeria would require investments in agriculture and industrial sectors.
Suleiman, meanwhile, reiterated that food security is closely tied to economic stability and security, stressing that food insecurity is the ‘ultimate insecurity’. He added that Sterling Bank has also increased its agricultural loan portfolio to 15%, a feat unmatched by any other financial institution in Africa, to provide sustainable support for farmers.
