Nigeria’s agricultural sector continues to show significant growth potential, but experts say inconsistent policy implementation, weak infrastructure, limited financing systems and fragmented value chains remain major obstacles to transforming the industry into a globally competitive sector.

Speaking in an interview with BusinessDay Nigeria, agricultural researcher and agribusiness entrepreneur Daniel David Bolorunduro said Nigeria’s commitment to agriculture remains “strong in intention but inconsistent in execution,” particularly at grassroots level.

Bolorunduro argued that while government policies and intervention programmes exist, implementation gaps continue to undermine their effectiveness, limiting productivity growth and slowing the transition towards a modern commercial agricultural system.

He said the country requires stronger coordination across federal, state and local government structures, alongside better monitoring systems, improved rural infrastructure, stronger extension services and more effective risk-management frameworks.

According to him, agriculture in Nigeria must evolve beyond fragmented subsistence farming into a coordinated, market-driven and investment-oriented industry capable of delivering measurable outcomes for farmers and agribusinesses.

Youth Participation Hinges On Agribusiness Opportunities

Bolorunduro noted that younger Nigerians often perceive agriculture as low-income, labour-intensive and unattractive because the sector is still largely presented as subsistence farming rather than a modern agribusiness ecosystem.

He said agriculture should instead be promoted as a value-chain industry that includes logistics, processing, technology, marketing, exports and distribution, opening opportunities for entrepreneurs with diverse skills beyond farming alone.

He also stressed the importance of reducing operational risks through insurance systems, financing access and reliable market structures to encourage greater private-sector participation and youth involvement.

Industry discussions in Nigeria increasingly reflect similar concerns.

Stakeholders at previous agricultural investment forums organised by BusinessDay Media Limited have argued that financing alone cannot solve Nigeria’s agricultural challenges unless infrastructure, logistics, storage, quality standards and market systems are simultaneously improved.

Infrastructure And Financing Continue To Limit Growth

Experts say weak transport infrastructure, poor storage facilities, limited mechanisation and high financing costs continue to constrain agricultural productivity across Nigeria.

According to a recent BusinessDay agriculture conference, poor access to tractors, mechanised equipment and technology adoption remains a major barrier to scaling food production nationally.

Industry stakeholders also warned that Nigeria’s agricultural financing system remains unbalanced, with more attention often placed on primary production than on processing, storage and market absorption capacity.

This imbalance contributes to cycles of oversupply, price crashes and farmer losses, weakening repayment capacity and increasing banking sector reluctance towards agricultural lending.

Bolorunduro similarly identified production risk, fragmented value chains and limited access to finance as three of the biggest structural constraints facing Nigeria’s agricultural economy.

He argued that many Nigerian farmers still lack access to affordable financing structures aligned with agricultural production cycles, while post-harvest losses remain severe because of inadequate logistics and processing systems.

Climate Risks And Food Security Pressures Intensify

Climate variability continues to increase production risks across Nigeria’s agricultural regions, placing pressure on yields, farmer incomes and food security.

Bolorunduro said agriculture in Nigeria remains highly vulnerable to weather-related shocks, making insurance systems and structured support mechanisms essential for stabilising farmer incomes and encouraging investment.

Discussions across Nigerian agricultural forums increasingly highlight insecurity, climate risks, rising fertiliser costs, logistics bottlenecks and weak storage systems as major contributors to food inflation and declining rural productivity.

Analysts also note that Nigeria’s agricultural sector remains heavily dependent on smallholder farmers using traditional farming methods, limiting productivity gains and slowing mechanisation adoption.

Research, Data And Technology Seen As Critical

Bolorunduro, currently pursuing postgraduate agricultural economics research at Auburn University, said evidence-based policymaking and data-driven agricultural systems will be essential for improving productivity and resilience.

His research focuses on crop insurance systems, agricultural subsidies and farmer income stability, particularly under climate-related risks.

He said Nigerian universities and agricultural institutions must adopt more problem-based learning models, improve integration of data and analytical tools, strengthen industry partnerships and place greater emphasis on entrepreneurship and innovation.

Technology adoption, mechanisation and improved analytical systems are increasingly viewed as critical to modernising Nigerian agriculture and reducing dependence on food imports.

Agriculture Seen As Central To Nigeria’s Economic Diversification

Despite ongoing challenges, experts maintain that agriculture remains one of Nigeria’s most important sectors for employment generation, food security, industrialisation and export diversification.

Bolorunduro said the country still possesses enormous agricultural potential if policymakers focus on building coordinated systems capable of supporting farmers, processors and agribusiness investors across entire value chains.

Industry analysts believe that stronger infrastructure investment, stable policies, improved logistics and expanded private-sector participation could help reposition Nigeria’s agricultural sector as a major driver of long-term economic growth across West Africa.