Fed Govt to invest in commercial agriculture

The Federal Government has said it is prioritising large-scale investments across the agricultural value chain, particularly in land management, mechanisation, irrigation, farm inputs, processing and logistics, as part of efforts to reposition agriculture as a key driver of economic growth, job creation and private investment.

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this on Tuesday in Abuja at the Ministerial Sectoral Retreat of the Federal Ministry of Agriculture and Food Security, where senior government officials outlined strategies to move Nigeria from subsistence farming to a commercially viable, investment-led agricultural economy.

Kyari said the Federal Government is implementing mechanisation partnerships with international equipment manufacturers from Belarus and Brazil, as well as global firms such as John Deere and Origin, to address Nigeria’s long-standing tractorisation gap.

According to him, the initiative is expected to reduce production costs, increase yields and attract private capital into farming and agro-processing.

The minister also revealed that the government is expanding Public-Private Partnerships (PPPs) through the establishment of Special Agro-Industrial Processing Zones, Agro-Industrial Estates, Agro-Processing Centres and Cottage Processing Mills nationwide.

“These facilities are designed to boost value addition, reduce post-harvest losses and deepen agro-industrial activities across the country,” Kyari said.

Speaking further, he stressed that agriculture remains central to Nigeria’s economic stability, foreign exchange conservation and national sovereignty, noting that food sufficiency is now being treated as a strategic economic priority.

Kyari recalled that President Bola Tinubu declared a state of emergency in agriculture at the beginning of the administration, elevating food and water security to the highest level of national attention.

“Our focus is to transit from subsistence to commercial farming. Agriculture must deliver productivity, income, jobs and wealth creation,” he said.

To improve market stability and reduce price volatility, Kyari said the ministry is implementing a National Food Reserve Programme to mop up excess production during peak seasons, ensuring steady supply and predictable pricing for farmers and consumers.

Other market-oriented initiatives, he added, include the development of Commodity Market Hubs, Farmers’ Markets, and Rural and Cooperative Markets to expand consumer demand and improve farmers’ access to profitable outlets.

He also highlighted programmes targeting youth and women in agribusiness, describing them as critical to unlocking Nigeria’s demographic dividend and stimulating rural economies.

In his address, the Minister of State for Agriculture and Food Security, Senator Aliyu Abdullahi Sabi, said the ministry is deliberately restructuring to support private sector participation, data-driven decision-making and performance management.

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Sabi disclosed that new departments have been created, including Agricultural Mechanisation, Agricultural Data and Analytics, Agricultural ICT, Horticulture, Plant Health and Development Partners Projects, to sharpen the ministry’s focus and improve efficiency.

According to him, the ministry is strengthening financing windows through the Bank of Agriculture and the National Agricultural Development Fund to support farmers, processors and agribusiness investors across the value chain.

He added that improved coordination of agricultural inputs, including fertilisers, agrochemicals and certified seeds, through regulatory reforms and PPPs has already delivered tangible benefits.

“This has yielded immense results, with prices of agricultural commodities dropping by about 30 per cent,” Sabi said, attributing the decline to improved supply, better regulation and market coordination.

The ministers emphasised that agriculture is being repositioned not merely as a social intervention, but as a competitive sector capable of driving GDP growth, export expansion, rural industrialisation and poverty reduction.

They stressed the need to integrate research, innovation, industry and policy to translate food systems into economic empowerment and sustainable livelihoods.

The retreat is expected to produce actionable plans aimed at accelerating implementation, ensuring accountability and consolidating agriculture’s role as a cornerstone of Nigeria’s economic diversification agenda.