Agriculture in Nigeria: 7 Interesting Facts & Statistics

agriculture in nigeria

Petroleum is still widely recognized as the mainstay of Nigeria’s economy; however, Agriculture in Nigeria remains the foundation or bedrock of the nation’s economy. It is an invaluable sector whose contributions to national revenue cannot be overlooked. Every year, the agricultural sector provides millions of jobs, tonnes of food and valuable raw materials, all of which translate into economic growth and development.

Facts About Agriculture in Nigeria

Here are seven interesting facts about agriculture in Nigeria that you probably didn’t know about:

  1. Agriculture Contributes More to Nigeria’s GDP Than Petroleum
  2. Agriculture Currently Accounts for Over 30% Of Employment Opportunities in Nigeria
  3. Nigeria Has a Total Agricultural Land Area Of 70.8 million Hectares
  4. Crop Production Is the Largest Subsector of Agriculture in Nigeria
  5. Nigeria Is the World’s Largest Producer of Cassava and Yam
  6. Livestock Production Is Still Largely Under-Exploited in Nigeria
  7. Nigeria Was Ranked 119th On The 2017 Global Agricultural Innovation Index

1. Agriculture Contributes More To Nigeria’s GDP Than Petroleum

It may interest you to know that for many years, agriculture has contributed more to Nigeria’s Gross Domestic Product (GDP) than petroleum, even though the latter accounts for about 80% of the country’s annual export earnings. Between 2011 and 2012, agriculture contributed to over 40% of the nation’s GDP. In 2018, the agricultural sector contributed an estimated 25% to Nigeria’s total GDP, the most by any sector, while the oil sector contributed 8.6% over the same period.

In 2019, the country’s GDP grew by 2.27 percent (from N69.80 trillion in 2018 to N71.39 trillion in 2019) and the growth was largely due to the contributions of the agricultural sector (N10.50 trillion), trade sector (N5.94 trillion) and the information and communication sector (N4.66 trillion). 

In 2020, the agricultural sector accounted for 24% of Nigeria’s GDP while the oil sector accounted for less than 9%. The contribution of the agricultural sector to the national GDP was 25.88% percent in 2021, while that of the oil sector remained under 10% (7.24%). Without a doubt, agriculture has proven to be the most valuable contributor to Nigeria’s economic growth in recent times.

agriculture in Nigeria - employment

2. Agriculture Currently Accounts For Over 30% OF EMPLOYMENT Opportunities in Nigeria

Statistics from reliable sources show that Agriculture has provided job opportunities for countless Nigerians over the years. According to the World Bank collection of development indicators, employment in Nigeria’s agricultural sector accounted for nearly 35% of total employment in 2019 and 2020. 

In the late 2000s and early 2010s, agriculture reportedly accounted for over 40% of employment in Nigeria. Currently, over 70% of Nigerians engage in agriculture, but mainly at the subsistence level.

Many may wrongly assume that crop farming, animal husbandry and trading are the only career options in agriculture, but agriculture in Nigeria is slowly evolving into a lucrative field with the advent of Agritech jobs that offer a wide range of career opportunities. 

The managing director of Babban Gona, Kola Masha, a leading agricultural entrepreneur in Nigeria, believes the country can reduce youth unemployment using agriculture.

agriculture in Nigeria-arrable land

3. Nigeria Has A Total Agricultural Land Area Of 70.8 Million Hectares

According to the United Nations Food and Agriculture Organisation (FAO), nearly 71 million hectares of Nigeria’s land area is currently being used for farming practices like crop farming and pasturing. This vast agricultural land area includes an arable land area of 34 million hectares (the 7th largest arable land area in the world), 6.5 million hectares for permanent crops, and 30.3 million hectares on meadows and pastures. 

Access to land for agricultural purposes is however limited by several challenges, these include poor land tenure system, climate change, extreme temperatures in some areas and excessive rainfall.

crop production

4. Crop Production Is The Largest Subsector Of Agriculture In Nigeria

Crop production accounts for over 90% of agriculture’s GDP, with livestock, forestry and fishing comprising the remaining 10%. Cassava, yam, maize, sorghum, rice and millet are the major crops produced in Nigeria. These crops together cover 65% of the total cultivated area. 

Cash crops like cocoa, rubber, cotton and oil palm are also cultivated extensively in Nigeria. Cocoa is Nigeria’s leading non-oil foreign exchange earner, however, there has been a steady decline in cocoa production in recent years. Rubber is the second largest non-oil foreign exchange earner, it is grown across numerous states in Nigeria; these include Edo, Delta, Ondo, Ogun, Abia, Anambra, Akwa Ibom, Ebonyi and Bayelsa. Oil palm is a significant contributor to the Nigerian economy, providing food and raw materials for the production of cosmetics, biofuels, plastics and drugs.

In 2020, Babban Gona, supported its farmer members to produce twice the national average of maize produced in Nigeria.

5. Nigeria Is The World’s Largest Producer Of Cassava And Yam

Nigeria accounts for up to 20% of the world’s cassava production (and 34% of Africa’s), making the country the largest producer of the crop in the world. Though the crop is produced in 24 of the country’s 36 states, cassava production dominates the southern part of the country, in terms of area covered and number of farmers growing the crop. The major states of Nigeria which produce cassava are Anambra, Delta, Edo, Benue, Cross River, Imo, Oyo, and Rivers.

Cassava production in Nigeria is well-developed, with well-established multiplication and processing techniques. The crop is grown throughout the year due to its exceptional ability to adapt to climate change, tolerate low soil fertility and resist drought conditions.

According to the International Institute of Tropical Agriculture, Nigeria is also the world’s largest producer of yam, accounting for over 70% of yam production in the world. The country produces over 47 million metric tonnes of yam annually.

Nigeria is also the largest producer of maize and rice in Africa.

agriculture in Nigeria - livestock production

6. Livestock Production Is Still Largely Under-exploited In Nigeria

According to the Food and Agriculture Organisation (FAO), animal production in Nigeria has remained under-exploited for decades. Livestock reared in Nigeria include poultry and ruminants like goats, sheep and cattle. Statistics show that domestic demand for livestock products in Nigeria outweighs production, despite several interventions by development partners to improve animal production and health. 

Despite widespread consumption of animal products in Nigeria, livestock farming accounts for less than 10% of agriculture’s nominal GDP in the country, and its value continues to decline. Factors militating against animal production in Nigeria include inadequate finance, high cost of animal feeds, animal diseases, lack of infrastructure, lack of government incentives and transportation challenges.

7. Nigeria Was Ranked 119th On The 2017 Global Agricultural Innovation Index

In 2017, the annual global innovation index focused on innovative advances taking place in the agricultural sector. Sadly, Nigeria was ranked 119th out of 127 countries. Lack of agricultural innovations and minimal adoption of modern technology in agriculture, are some of the major challenges preventing Agriculture from taking its rightful place as the mainstay of Nigeria’s economy.

Over the years, the Nigerian Government has made numerous attempts to transform the agricultural sector. Efforts have been made to encourage innovative ideas and provide adequate technology (and other incentives) to farmers. However, the country still has a very long way to go.

Babban Gona makes use of artificial intelligence in farming and other technological innovations to improve the productivity and profitability of smallholder farmers in Nigeria.

The seven facts above clearly indicate that Agriculture has contributed immensely to the Nigerian economy over the years. However, due to certain limitations, as well as excessive focus on the oil sector, the agricultural sector is yet to reach its full potential.

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Frank Altman

Board Director

Frank Altman is the founder and first CEO of Community Reinvestment Fund, USA. As CRF’s founder, Altman pioneered the development of a secondary market for community and economic development loans. Since 1988, under Altman’s leadership and in partnership with a network of more than 200 local community partners, CRF has funded more than $3.5 billion in loans to job-creating small businesses, non-profits, charter schools and affordable housing projects in 50 states plus the District of Columbia and more than 1,000 communities across the United States.
 
Altman helped design the creation of the federal New Markets Tax Credit to encourage private investment in low-income communities and is a founding member and first President of the New Markets Tax Credit Coalition. He is also a member of the Center for Community Development Investors at the Federal Reserve Bank of San Francisco and an advisor to the Social Innovation Initiative at Brown University and the Center for Impact Finance at the University of New Hampshire. His work has been featured in Inc. Magazine, where he was named one of its Entrepreneurs of the Year, and he received Fast Company’s Social Capitalist award.
 
Altman has been awarded the Economic Development Innovation Award from GIS Planning Inc. and fDi Intelligence for his contribution to the field of economic development. Altman is a Senior Fellow at Ashoka, the world-wide network of social entrepreneurs and a founding member of Kindred.
 
More recently, in September 2023, Altman authored a book published by Forbes and titled “A New Capitalism: Creating A Just Economy That Works For All.”It is available in physical and online book stores and on Audible.

Michael Jainzik

Board Director

Michael Jainzik works as an independent consultant and brings his extensive expertise in the areas of agricultural finance, international investments, risk management and corporate governance. He is currently based in Rome, Italy.
 
From 2001 to 2011, Michael worked as an investment professional at KfW Development Bank, focusing on international debt financing and equity investments in investment funds and banking institutions, mainly in the areas of agricultural finance and microfinance. From 2011 to 2015 he worked as Director of KfW’s office in Windhoek. In this role, he helped manage and develop KfW’s EUR 250 million portfolio in Namibia. From 2015 to 2017, he took on the position of Head of Corporate Development at Access Microfinance Holding, where he was responsible for structuring and leading a merger process between Access Holding and another company.
 
Prior to joining Babban Gona, Michael served as a non-executive director in Access Bank Azerbaijan (2006-2011, Chairman), Belarusian Bank for Small Business (2008-2011), Rural Impulse Fund II Luxemburg (2010-2011) and AB Bank Zambia (2011-2016).
 
Michael studied economics and management at the Universities of Lüneburg and Witten/Herdecke (Germany) and at ETEA – Universidad Loyola in Córdoba (Spain) and holds a Master’s degree in economics and management.

Bello Maccido

Board Member

 Mr. Maccido is an accomplished Corporate and Investment banker with over 31 years post graduate experience. He had at different times served on the Boards of FBN Holdings Plc, First Bank of Nigeria Plc and Legacy Pension Manager Limited and is currently the Chairman, FBN Merchant Bank Ltd. Mr. Maccido is a Fellow of both the Chartered Institute of Stockbrokers and the Chartered Institute of Bankers of Nigeria. Mr. Maccido holds a Law Degree (LL.B) and a Masters Degree in Business Administration (MBA) from Ahmadu Bello University, Zaria and Wayne State University, Detroit, Michigan, USA respectively. He is a Barrister at Law (BL) of the Supreme Court of Nigeria and an Alumnus of the Executive Business Programs of the Harvard Business School and the IMD, Lausanne, Switzerland.

Muhammad Sanusi, CON

Chairman of the Board

His Highness Muhammad Sanusi was appointed the 10th Governor and Chairman of the Board, Central Bank of Nigeria on 3 June 2009. He earned Bachelor’s and Master’s degrees in Economics from the Ahmadu Bello University, Zaria, and also has a first-class degree in Sharia and Islamic Studies from the African International University, Khartoum, Sudan.
 
From working as a lecturer at the Ahmadu Bello University, where he taught Economics, he joined the banking industry in 1985, and by January 2009 had risen to General Manager and Group Managing Director of First Bank of Nigeria PLC, Nigeria’s oldest and biggest bank. Mallam Sanusi has been conferred with a National Award of Commander of the Order of the Niger (CON) by the President of the Federal Republic of Nigeria and has also been awarded the “Global Central Bank Governor for 2010” by The Banker Magazine, a publication of the Financial Times.
 
He was also voted Central Bank Governor of the Year for Sub-Saharan Africa 2009 (an award he won again in 2010) by Emerging Markets, a publication of Euromoney Institutional Investors. In 2011, Mr. Sanusi was named Forbes Africa Person of the Year for 2011. He was also listed by TIME Magazine as one of the 100 most influential people in the world. Kola Masha (Managing Director) Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore.

Lola Masha

Executive Director

 

Before joining Babban Gona, Lola was the Director for Trust and Safety at OLX Group, working across 30+ OLX markets to ensure that buyers and sellers can transact safely and securely on the platform. Prior to her global role at OLX, Lola was the Country Manager for OLX in Nigeria where she was responsible for driving all elements of the business including Business Development, Product Localization, Marketing and other relevant functions. OLX Group is one of the world’s leading online classifieds players. Through its brands including OLX, Avito, dubizzle and letgo, OLX Group is the home of online classifieds in high-growth markets.

These platforms are the leading destination for buying and selling used goods and services in 30 countries, and the #1 mobile app in its category in more than 20 markets. Globally ~ 11 million items are exchanged through its platforms every single month.

Prior to joining OLX, Lola spent 4 years at Google leading various Product Partnerships efforts across EMEA and Emerging Markets. Lola was one of the earliest Googlers in Sub-Saharan Africa when the technology company began its operations in the region.

Lola shaped the regional strategy, executed on several core initiatives and led business development efforts with key SSA partners including the telcos, OEMs, digital content providers and local entrepreneurs. Lola brings significant leadership experience in business development, entrepreneurship, operational transformation and product development across several industries including technology and financial services.

In addition to Africa, Lola has substantial international working experience in North America, Europe, and Asia. She also worked in the Chicago office of McKinsey & Company, where she spent time advising senior executives on extensive strategic management topics. Lola holds a Doctorate degree in Engineering from the UniversiAnnual Report 2019/2020 ty of California, Berkeley and a Bachelor of Science degree in Engineering from the University of Virginia. She is happily married with two kids.

Kola Masha

Managing Director

 Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.

Kola Masha

 

Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.