Recently,the business of agriculture has taken a new dimension and stakeholders in the policy formulation have change the level of administering agriculture as a developmental activity to a more pragmatic,business-like approach.
This cause a surge in the investors,entrepreneurs,and industrialists to.participate in.agribusiness.
With the insurgence of small-medium.scale farms,processing factories,increment in exportation activities of agro-preneurs and investors,agribusiness industry is the next biggest wealth creator,high margin income generator to the country’s economy.
States such as Ogun,Osun,Lagos and Port-harcourt have witness about $9billion dollars foreign direct investment in agriculture in the last 2 years alone which is expected to triple that amount in the next years.
Firstly,the robust agricultural loans and credits for the agribusiness chain value from the farmers to the traders and to the processor at low interest rate has been put in place by various commercial banks in Nigeria made possible through the Nigerian Incentive-based Risk-Sharing System For Agricultural Lending (NIRSAL).
NIRSAL was initiated by the Central bank of Nigeria and its perhap the most comprehensive and ambitious agricultural lending strategy which focuses on the agricultural value chain so that banks can lend to agricultural value chain by offering strong incentives and technical assistance.
Dying Nigerian Agricultural Insurance Corporation have also been reverbrated and about 100 million dollars injected for its operations.
Variety of risks including weather and all other risks can now be insured under the various products rolled out for farmers,traders and processor of agribusinessmen/women.
Secondly,by 2050 the population of the world will have over 9 billion people with more than 30% of that to be on Sub-saharan Africa alone.
By then Nigeria population is expected to have quadruple to about 600 million people.
Lands for.cultivation is expected to have decrease because of urbanisation (population seeking land to build houses) which will put more pressure on lands for cultivation purposes.
An increased population of the Middle class (people earning $100,000 and above/year) is also expected to consume more of fresh produce and processed agric-products from producers and processors.
This will in many ways improve tremendously the income of the farmers and processor of agro-commodities.
The Third Reason: Technology and innovations is also expected to have change the way fresh and processed produce are to be made available to the final consumers.Selling of farm produce on e-commerce sites and websites are expected to make more farmers multi-millionaire in the shortest possible time ever.
The agric sector will be buoyant in.few years time because of gradual abandonment of oil by the government which has been faced with major challenges of flunctuation of oil price in the world market, lack of patronage from the major buyer (USA), and cost of importation of this refined products.