To maintain its share of the continent’s agriculture GDP by 2030, Nigeria will need to grow its agriculture sector revenues by a compounded annual growth rate (CAGR) of 4.7% annually. To ensure this is achieved, agriculture budget to GDP will have to be sustained by at least 7% annually. It is estimated that agriculture is Africa’s largest economic sector, representing 15% of the continent’s total GDP. Nigeria contributes 14% of Africa’s agriculture GDP. The World Bank forecasts that by 2030, the food market in Africa will grow to be a US$1 trillion industry. Nigeria will need to intensify its investments in improving agriculture yield and integrating the value-chain over the next decade to effectively capture a significant share of the US$1 trillion market.
According to the Alliance for a Green Revolution in Africa (AGRA), Africa continent would require over US$300 billion of public and private investments across the agriculture value-chain over the next decade.
The ratio of Nigeria’s budget for agriculture to annual budget falls short of the prescribed standard set by the Maputo Declaration on Agriculture and Food Security (“The declaration”). Through the declaration, the African Union (AU) agreed to allocate at least 10% of its member countries annual national budget to agriculture.
Budgetary allocation for agriculture of N0.20 trillion accounts for 2.2% of the proposed 2018 budget of N9.12 trillion. In 2017, agriculture budget of N0.10 trillion represented 1.3% of total budget of N7.44 trillion.