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The Nigeria Standard
Home Editorials

The Federal Government’s commendable agribusiness reforms

by The Nigeria Standard
December 17, 2025
in Editorials
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The Federal Government’s commendable agribusiness reforms
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EDITORIAL

THE Federal Government’s renewed push to reposition agriculture from subsistence survivalism to a fully commercial, investment-driven sector is very commendable. This is not only for its ambition but for the clarity of purpose now shaping policy direction. At a time when Nigeria is grappling with food inflation, unemployment and foreign exchange pressures, the decision to treat agriculture as a strategic economic priority rather than a welfare programme signals a long-overdue shift that must be sustained and replicated across all tiers of government.

PRESIDENT Bola Ahmed Tinubu’s declaration of a state of emergency in agriculture set the tone early in the life of this administration, elevating food and water security to the highest level of national attention. What is now unfolding under the leadership of the Minister of Agriculture and Food Security, Senator Abubakar Kyari, shows that the declaration was not merely symbolic. The emphasis on mechanisation, value-chain development, agribusiness financing and market expansion reflects a deliberate attempt to unlock agriculture’s full business potential and reposition it as a driver of productivity, income, jobs and wealth creation.

IT is worthy of note that Nigeria’s greatest agricultural weakness has always been its over-reliance on smallholder, rain-fed subsistence farming, with little attention paid to scale, efficiency or profitability. By prioritising large-scale investments in land management, irrigation, mechanisation, processing and logistics, the Federal Government is directly confronting this structural problem.

PARTNERSHIPS with international equipment manufacturers from Belarus and Brazil, alongside global firms such as John Deere and Origin, to close the country’s tractorisation gap are particularly significant. Mechanisation is not a luxury; it is a prerequisite for lowering production costs, increasing yields and attracting private capital into farming and agro-processing.

EQUALLY commendable is the expansion of Public-Private Partnerships through Special Agro-Industrial Processing Zones, Agro-Industrial Estates, Agro-Processing Centres and Cottage Processing Mills. These interventions recognise the fact that farming alone does not build prosperity; value addition does. Therefore, by reducing post-harvest losses and strengthening supply chains, these facilities can stimulate rural industrialisation, deepen agro-industrial activity and create jobs far beyond the farm gate. The introduction of a National Food Reserve Programme to mop up excess production during peak seasons also shows an understanding of market dynamics, helping to stabilise prices, protect farmers from losses and ensure predictable food supply for consumers.

FURTHERMORE, the reported drop of about 30 per cent in agricultural commodity prices, attributed to improved input coordination, better regulation and effective market management, is early evidence that reform is already yielding tangible economic benefits. The deliberate restructuring of the ministry to support private sector participation, data-driven decision-making and performance management, including the creation of specialised departments for mechanisation, data and analytics, ICT, horticulture and plant health, further underlines a seriousness that has often been lacking in the past.

HOWEVER, for these reforms to deliver their full impact and potentials, state governments must not remain passive observers. And, as agriculture is constitutionally and practically a shared responsibility, no federal initiative can succeed in isolation. This is because states control vast tracts of land, rural infrastructure, extension services and local markets. Therefore, they must align with the Federal Government’s commercial agriculture agenda by investing in mechanisation, supporting agro-industrial clusters, facilitating access to land, strengthening rural roads and creating enabling environments for private investors. States that continue to treat agriculture merely as a poverty-alleviation scheme risk being left behind in a rapidly changing food economy.

THE focus on youth and women in agribusiness is another area where states must follow suit. Nigeria’s demographic dividend can only be realised if young people see agriculture as a viable, profitable enterprise rather than a last resort. This requires coordinated financing, skills development and market access at both federal and state levels. Strengthening financing windows through institutions such as the Bank of Agriculture and the National Agricultural Development Fund should be complemented by state-level support structures that de-risk investment and encourage innovation.

IN repositioning agriculture as a competitive sector capable of driving GDP growth, export expansion, rural industrialisation and poverty reduction, the Federal Government is laying the foundation for genuine economic diversification. What is now required is consistency, transparency and disciplined implementation, alongside active collaboration from state governments. If states embrace this business-driven reform agenda and adapt it to their local realities, agriculture can finally become the engine of inclusive growth Nigeria has long promised its people but consistently failed to deliver.

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