The National Bureau of Statistics announced that during the first three months of 2023, capital importation into Nigeria’s agriculture sector increased by an astounding 175%. Despite the effects of the currency crisis on many industries, foreign direct investment (FDI) into agriculture increased significantly from the $1.76 million (N1.3 billion) reported in the same time previous year to an astonishing $4.84 million (N3.6 billion).
Surprisingly, the $4.84 million investment into the industry represents 0.43% of the $1.13 billion in capital investment that will enter the nation from January through March 2023.
However, a quarter-over-quarter analysis revealed a modest fall of 30.4% in investment in the agricultural sector, from $6.95 million in the fourth quarter of 2022 to $4.84 million in the first three months of 2023, a drop of 30.4%.
Interestingly, although being a crucial part of agriculture, the fishing sector failed to draw any investment during the first quarter of the year.
Industry analysts underline that when managed effectively, the agriculture sector remains an attractive and lucrative business. According to Aquashoots Limited’s operation manager, Abiodun Olorondenro, given the appropriate circumstances, the industry will surely continue to draw substantial investments.
Experts encourage the government to promote an enabling climate and act quickly to solve the growing insecurity concerns in order to support the sector even more. Such actions are essential to luring additional investments into the booming agriculture sector.
The sector’s growth shrank by 0.90% during the same time, the first contraction seen since the dawn of the democratic era, despite the tremendous investment boom. To revive and maintain the growth trajectory of Nigeria’s agricultural industry, a closer look at the fundamental causes of this slump is essential.
