The ₦826.5 billion allocation to agriculture in the 2025 proposed budget, has signalled a transformative approach to revitalizing the sector, bolstering food security and generating mass employment, experts have said.
The allocation indicates over 100 per cent increase from N362.94 billion in 2024 and N228.4 billion in 2023. Capital allocations also rose by 130% compared to last year.
Presenting the proposed N47.965trn 2025 expenditure framework tagged, “Budget of Restoration: Securing Peace, Rebuilding Prosperity” to the joint session of the National Assembly Wednesday in Abuja, President Tinubu said a key element to drive the projected positive economic outlook next year will be bumper harvests, driven by enhanced security, and reduction in reliance on food imports.
“Food security is non-negotiable. In this regard, we are taking bold steps to ensure that every Nigerian can feed conveniently, and none of our citizens will have to go to bed hungry,” Tinubu assured in his budget speech.
With a population surpassing 220 million and an annual growth rate of 2.1%, Nigeria is under increasing pressure to enhance its food production capabilities.
Authorities say that in 2025, the government will commit to creating an environment conducive to both local and foreign investment into agriculture, as it intends to rehabilitate dams and irrigation systems, which have suffered from siltation and erosion.
“To ensure food sufficiency and reduce reliance on imports, ₦826.5 billion has been allocated to agricultural mechanization, irrigation projects, and value-chain development.
“This will not only boost food production but also support economic diversification and rural development, Tanimu Yakubu, Director General, of the Budget office, noted.
In the third quarter of 2024, the agriculture sector grew by 1.14%, contributing 28.65% to GDP same period.
A significant barrier to the sector’s growth has been modernization due to the lack of mechanization. Consequently, the government seeks to promote collaborations with the private sector to enhance mechanization across crop, livestock, and aquaculture sectors, according to a budget document seen by BusinessDay.
There are also plans to drive capital-intensive agribusiness programmes capable of attracting foreign direct investment (FDI).
“Plans include establishing commodity exchanges and supporting agro-processing centers, which will not only drive import substitution but also address youth unemployment.”
Meanwhile, a key component of the planned agriculture revamp is the Renewed Hope Fertilizer Support Program (RH-FSP) designed to enhance fertilizer production and distribution in the country, improve crop yields and farmer incomes, and lower worrisome food-induced inflation.
It includes a ₦127.27bn intervention fund to be deployed for the importation of raw materials, improve logistics, and support local blending plants.
There is also revolving concessionary financing, and an affordable loan scheme to promote long-term sustainability in fertilizer production.
The National Agricultural Development Fund (NADF) which replaces the discontinued CBN’s Real Sector Support Facility (CBN-RSSF), offering single-digit interest loans will support local fertilizer production through low-cost financing.
While PFI-NPK continues in the fertilizer value chain, NADF will manage funds, ensuring long-term sustainability.
“Under the current structure, PFI-NPK delivers 400,000–670,000 MT of NPK annually. With the new framework, production is could rise to 1.2 million MT by 2025, and gives us comfort that government is really committed to a productive and sustainable agricultural sector, while enhancing food security nationwide,” Mohammed Adamu, an Abuja-based agri-businessman told BusinessDay.
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