Challenges in Agricultural Yield Highlighted at Business Day Conference
Yields per hectare in Nigeria remain persistently low as farmers struggle to secure access to quality seeds and seedlings. This challenge is further compounded by economic constraints, leading to heightened food insecurity across the nation.
Key Issues Plaguing Farmers
During the recent Business Day Future of Agriculture conference in Lagos, industry stakeholders emphasized that inadequate access to quality seeds and escalating input costs hinder farmers from increasing their yields and ensuring a stable food supply.
Access to Quality Seeds Remains Limited
Mr. Ayodeji Balogun, Group Chief Executive Officer of Africa Exchange (AFEX), delivered a keynote address underscoring the predominant issue of limited access to premium seeds among smallholder farmers. He highlighted that Nigeria, despite its vast arable land, struggles with significantly lower yields per hectare compared to other African nations.
Climate Change and Infrastructure Issues
Mr. Balogun attributed these challenges to the adverse impacts of climate change and inadequate infrastructure, which collectively stifle agricultural productivity. He noted that, on average, a good Nigerian farmer manages to harvest only about 4 tonnes per hectare, while farmers in countries like Kenya achieve similar yields on less than half that land area due to better seed quality.
Consequences of Using Subpar Seed Types
He pointed out that many Nigerian farmers opt for preserved seeds from previous harvests to cut production costs. Unfortunately, this practice diminishes seed viability over generations, resulting in declining productivity. Compounding the issue is Nigeria’s low fertilizer consumption, despite being a major producer of urea, with many farmers hesitating to purchase fertilizers due to high costs.
Lack of Finance Stifles Growth
Lagos State Governor Babajide Sanwo-Olu echoed concerns regarding poor seed quality adversely affecting agricultural yields. Represented by Agriculture and Food Systems Commissioner Abisola Olusanya, the governor noted that without access to tools and financing, farmers are confined to subsistence level production.
Innovative Solutions for Financing the Agricultural Sector
Panelist Amaka Chukudum-Ajide, founder of Amicable Mondiale Farms, shared insights into the difficulties of securing quality seeds promptly. Stakeholders lamented inadequate credit access as a barrier to acquiring crucial agricultural inputs, with African Farmer Magaji, CEO of Agbado Value Chain Limited, advocating for innovative financing solutions like crowd production as opposed to traditional crowdfunding.
Alternative Financing Strategies Suggested
Traditional banks remain risk-averse, often prioritizing profit over potential opportunities in agriculture. Kujia Gumunyu, head of agribusiness at First City Monument Bank (FCMB), emphasized the need for banks to partner with organizations that can absorb risks and provide funding support. Moreover, experts recommended exploring commercial paper as a viable financing alternative, which can offer lower interest rates compared to conventional bank loans that can soar near 30 percent, ultimately hampering farmers’ profitability.
