The Nigerian agricultural landscape is poised for a transformative shift, driven by a newly formed alliance committed to bolstering local sourcing and production. Twenty-five key players from the agribusiness, private, and public sectors have pledged to source at least 80% of their raw materials and ingredients from within Nigeria by 2035. This ambitious commitment marks a significant stride towards achieving food security and sovereignty for the nation. The Nigeria Foods Systems Transformation Alliance, facilitated by IDH, a global agro-trade organization, brings together diverse stakeholders, including banks, food processing companies, and agro-dealers. This collaborative effort aims to stimulate investment, boost local production, and foster sustainable practices throughout the food value chain. The signing of a Memorandum of Understanding (MoU) between IDH and the National Agricultural Development Fund further underscores the commitment to achieving these transformative goals.
The alliance’s 10-year plan envisions a multi-pronged approach to revitalizing Nigeria’s agricultural sector. The commitment to increasing local sourcing by 80% and local food production by 20% represents a substantial investment in the nation’s agricultural capacity. This focus on local production is anticipated to reduce reliance on imports, thereby strengthening the domestic economy and creating new opportunities for Nigerian farmers and businesses. Simultaneously, the alliance aims to empower small and medium enterprises (SMEs) by promoting commercialization and growth. Integrating climate-resilient and regenerative production supply chain practices is another crucial element of the plan, ensuring the long-term sustainability and resilience of Nigeria’s food systems.
The potential economic impact of the alliance is substantial. By increasing local production and value addition, Nigeria can significantly reduce import dependence, particularly for commodities like wheat. Substituting cassava for wheat, for instance, could represent an investment exceeding N200 million. The alliance seeks to create a dynamic ecosystem for collaboration among agricultural stakeholders, facilitating partnerships that build resilient value chains and generate targeted value. To ensure effective implementation and accountability, a steering committee will be established to oversee the alliance’s operations and track progress towards achieving the outlined targets.
The alliance’s vision aligns with the broader imperative for large-scale food processing in Africa. Recognizing the continent’s significant population and untapped potential, Kebba Colley, IDH Global Director of Value Chain Transformation, emphasized the need for collaborative efforts to create Fortune Global 500 companies within the African agricultural sector. This ambitious goal aims to generate employment opportunities and drive economic growth, addressing the current disconnect between Africa’s GDP and population growth. Leveraging the continent’s large population is crucial for boosting economic prosperity and ensuring food security for all.
A critical challenge facing Nigeria’s agricultural sector is the predominantly fragmented nature of smallholder farming, which leads to productivity gaps and limits local sourcing possibilities. Addressing this challenge is paramount for establishing a stable and resilient supply line. Improving access to high-yield seeds is a key strategy for enhancing productivity, particularly for staple crops like maize. With the potential to double its maize yield within the next five years, Nigeria could become a significant food producer for the entire African continent. Overcoming these sourcing challenges will enable food processing companies to access a reliable supply of raw materials, facilitating growth and expansion within the sector.
The Nigeria Foods Systems Transformation Alliance represents a crucial step towards transforming the nation’s agricultural landscape. The alliance’s comprehensive approach addresses key challenges, including limited local sourcing, productivity gaps, and the need for climate-resilient practices. By fostering collaboration, promoting sustainable practices, and empowering local businesses, the alliance aims to enhance food security, stimulate economic growth, and create a more resilient and prosperous agricultural sector for Nigeria. The commitment of these key players signals a renewed focus on harnessing the potential of Nigeria’s agricultural sector for sustainable development and economic prosperity.
