Foreign investors and commercial farming in Nigeria

Subsistence farming is an age-long practice in Nigeria. Recent occurrences show we can not continue any longer in this comfort zone. The rate at which prices of food have been going up is alarming and it portrays a fact that demand is not matched with supply. Agriculture remains a viable option for diversifying the Nigerian economy but some defects in this sector would not give it the chance to take its place in the economy.

Common problems like energy cost, erratic power supply, poor road network, poor agricultural research, youth migration to urban centres and lack of credit to the local farmers have continued to strangulate food production in Nigeria. Sadly too, this all-important sector largely operates in the informal sector of the economy.
Given this interpretation, it is not surprising that the Nigerian government is throwing its weight strongly behind an enormous increase in the scale of agricultural production. For instance, the federal government mandated the CBN to disburse N200 billion to promote commercial farming in Nigeria. The planned execution of this mandate has received kicks and knocks, suggesting that this gesture may still be a shot far from the target. The government seems to be on the razor’s edge, trying all available options to tackle food scarcity in Nigeria.

Foreign farm investors may have seen a goldmine in Nigeria’s agricultural landscape, just as foreigners saw the goldmine in our oil wells that attracted them in time past. Today, their coming can be seen as mixed tales. Though allowing these foreign farm investors into Nigeria has its blessings in employment for our youth, likely food price reduction, increased research efforts, availability of raw materials for our agro-processing industry, new species and quality of farm products, opportunity for acquisition of transferred agricultural technology, some long-term implications need to be considered.
Agricultural production by these foreign farm investors would be beneficial for the Nigerian state if targeted at the local market and for internal consumption. What would be the implications in the event of these foreigners leaving the country?

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This present regime would have to enter into mutually rewarding arrangement with the foreign farm investors. The Nigerian government must be mindful on how to sustain this arrangement even with change of governments.

However, commercial farming is long over due in Nigeria. It is a strategy to weather the storm in the present economic crunch experienced worldwide. Foreign farm investors can be catalysts in the plan to boost agricultural production in Nigeria. Thus, we support the coming of these foreign farm investors as it will go a long way to boost our food security profile and possibly stilmulate other sectors of the economy.