Opinion
Agriculture As A Road To Wealth Creation
In the 1950s and 1960s,
agriculture played important role in economic development of Nigeria. The various regional governments of 1940s encouraged agriculture. In the West, Cocoa was produced and exported through the cocoa Marketing Board to foreign countries . Cocoa earned a lot of money for the Western region and the Federal Government.
In the northern part of Nigeria, groundnut, hides and skin were produced largely in Kano and other towns and villages. In the East, oil palm was produced and exported to foreign countries like Britain and France. Agriculture employed over sixty per cent of Nigerians.
When crude oil export started with the completion of oil refinery at Eleme in Rivers State, crude oil became the black gold. Many states focused on oil money and abandoned agriculture.
In the 1970s, oil revenue increased and the government failed to encourage mechanized farming. With a windfall in oil revenue from 2013 – 2014, the Federal Government refocused on agriculture for production and export of farm produce.
It is time to encourage agriculture because with mechanized agriculture, we can produce large quantity of produce like rice, beans, yam, groundnuts, cashew nuts, cassava, cocoa beans, kola nuts maize, melon, millet, oil palm, plantain, banana rubber, sorghum, sesame etc. Cassava can be processed into many products like starch, garri, animal feeds etc, while cocoa beans can be processed into coffee, tea, by indigenous entrepreneurs. Beans can be bagged and exported to foreign countries and yam can be exported to other African countries.
Individuals and various government can also encourage the planting of oil palm, plantain, soyabeans and banana. Rice, plantain and banana are grown in loamy soil that is common in southern part of Nigeria. Also, the government can also focus on rearing of animals, making sure that there are ranches to keep these animals in order to avoid grazing problems that has been alarming in the country.
The government should also provide fishing troullers where fishes can be trained in mass and exported to other countries. These fishes can be canned and exported, the animals also can be canned while the remains of the animals such as the skin, hides can be used to produce things like leather bags, shoes, gums etc. Its dung can be used as manure to grow crops instead of using chemical manures that blot the crops and make it manure before its time, thereby making the produce to be rotten sometimes and harmful to human health.
Agriculture can make Nigeria to diversify its economy ie a shift in monoculture economy from over reliance on crude oil especially at a time when the oil price is falling, thus having devastating effects on the economy. If the proper investments are made in the agricultural sector, the current contributions being made to the economy by this sector can be doubled or even tripled because Nigeria has both human and natural resources to achieve this potential.
Agriculture will help in the provision of food and raw materials to the Nigerian population and the development of manufacturing sector, respectively. This will bring about the building of infant industries where agricultural outputs can be processed, refined and produced by indigenous Nigerians, thereby creating job opportunities for graduates and young school leavers.
Nigeria today imports virtually everything including rice, toothpick, of which Nigeria is capable of producing in mass for the consumption of her citizenry as well as exporting it. This is a big shame and embarrassment to Nigeria because other African countries look up to her.
The present administration under President Muhammadu Buhari, has banned the importation of rice, frozen fishes and other items into the country. This is a welcome development to start with. But the question is, with the ban on importation of these items, what is the populace going to feed on especially against the backdrop of the fact that the agricultural sector does not have a firm footing yet?
The Federal Government has to make sure that infrastructures are put in place, industries should be built so that young entrepreneurs could engage themselves in agricultural activities which will curb the effects of rural-urban migration and for the rural people to engage in agriculture, which will help to decongest the urban areas and make life easier for people both in the urban and rural areas. It will also help the government to make more effect in developing the degrading infrastructural facilities and Hius ease movement of goods from one location to the other.
Developing the agricultural sector will also help in improving other sectors and thereby curbing the level of the existing corruption in the country.
The importance of agriculture to the Nigeria economy as to wealth creation cannot be overemphasized. Therefore, the bulk of work lies in the hand of the government and entrepreneurs to take advantage of the enormous benefits that is in the agriculture sector.
Sam-Dekii is a student of the Rivers State University of Science and Technology, Port Harcourt.
Mina Sam-Dekii
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo