Economics of Food Security and Sustainability in Nigeria

Description

The economy of Nigeria is mostly based on agriculture and about 30% of Nigeria’s GDP and 34.66% of jobs were created by the industry in the third quarter of 2021. However, given the circumstances and patterns of its performance, Nigeria’s agricultural sector contribution to the country’s economy leaves much to be desired. For example, food production consistently falls behind consumer demand, creating structural shortages in the supply of key commodities. The performance of the agricultural industry as a whole has historically been based on two factors: food security and agribusiness. While both depend on government policy intervention for optimal performance, the former is characterized by a function that is primarily driven by social utility and the latter by private profit. With regard to supplying food, raw materials, income for farmers, jobs, and a source of foreign currency, agriculture serves as the only anchor of the food systems and is crucial in promoting inclusive sustainable economic growth.