Sterling
Bank Plc, in partnership with StearsData, has released an in-depth report for
the agriculture sector in Nigeria. The report titled Agriculture Industry Report
2021 provides the most up-to-date view of the challenges
and opportunities in Nigeria's agriculture sector in a COVID-19 era.
The
four-part report critically examines the country's agriculture value chain
state, state of affairs post-COVID-19, the climate change challenge and
opportunities for innovations and investments.
Bukola
Awosanya, Group Head of Agric Finance and Solid Mineral at Sterling Bank, said
the industry report empowers players in the agriculture sector with a
navigation roadmap. And affirms Sterling Bank's commitment to de-risking and
making the domestic agriculture value chain more viable for commercial
lending.
"The
goal of the report is to help investors and operators understand the challenges
facing the sector, consider recommendations by experts, and become aware of
relevant opportunities, both now and in the future. It would empower them to
support policymakers to craft policies that would create the enabling
environment that the sector needs to thrive," Awosanya informs.
According
to the agric finance expert, the industry report is a continuum of the bank's annual
Agriculture Summit Africa (ASA) held for three consecutive years since 2018. It
supports the bank's goal of creating a pathway for lending to farmers and other
value chain players without intervention funds, making it possible for the
federal government to free up funds allocated to subsidising the sector to
other industries.
She
disclosed that the first part of the report provided an overview of the
agricultural value chain and analysed some of the conditions that led to the
sector's underdeveloped state.
While
the second part reviewed the impact of the COVID-19 pandemic on the country's
agriculture sector, response to the pandemic, and lessons learnt from other
countries on the need to build a more resilient agricultural sector.
The
third part explored how climate change impacts the sector, highlighting ways
stakeholders can overcome the challenge. And the fourth part of the report explored
opportunities for innovation and investments and how recent innovation is
transforming the industry.
Michael
Famoroti, Chief Economist at Stears, said the Agriculture Industry Report 2021 provides insights and actionable recommendations for future-proofing
the sector from severe disruptions such as the COVID-19 pandemic. He added that
the recommendations are essential for all stakeholders and a valuable resource
for building a resilient and commercially viable industry.
In
the main, the Agriculture Industry Report 2021 powered by Sterling Bank and
StearsData shows that Nigeria's agricultural sector is operating below its
potential, "even by its standards." It identified the inefficiencies
that slowed and crippled the growth of the sector.
The industry
report indicated that continued reliance on trade restrictions as a primary
tool for stimulating local production would lead to greater market instability.
It will undermine supply and expose consumers to significant price
fluctuations, making food security elusive as population growth puts more
pressure on food resources.
COVID-19
and its attendant shock, according to the report, makes an agricultural sector
that is more resilient to shocks an imperative. More importantly, the effects
of climate change which continue to pose a real long-term threat.
It,
therefore, advocated improved production methods that are more efficient and
sustainable, investing in large scale storage so that national reserves are
sufficient in times of crisis or implementing a public sector framework such
that issues that concern the sector can be assessed by the appropriate bodies
and a coordinated response is pushed out in a timely manner.
The
Agriculture Industry Report 2021 also advised policymakers to protect the blossoming
innovation ecosystem in the sector with consistent policies and collaborate to
foster growth. It suggested a value chain approach so critical links are not
ignored when designing solutions for the sector.
It
said, "As Nigeria inches out of another recession, there is no better time
to take steps that support its resolute claims that the performance of its
agriculture sector is key to its long-term growth."
StearsData
is a data collection, analytics, and data access division of Stears, a digital
information company. Agriculture, on the other hand, is one of the five sectors
of the economy that Sterling Bank focuses on as part of its effort to
accelerate industrialisation and reduce poverty through sectors that impact the
quality of life of millions of Nigerians. The other sectors are health,
education, renewable energy, and transportation.
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