Agriculture

Is Agriculture Sector In 2021 Still A Growth Story?

Nigeria’s agriculture sector growth remained positive through 2020 but at a considerably slower pace. Despite increased government attention, growth remained at a low-single-digit level. Compared to a 5-year average growth rate of 3.0%, the sector grew by 2.2% in Q1-20.

However, the coronavirus pandemic’s emergence and the ensuing restrictions dragged growth in Q2-2020 as the crop production sub-sector (over 85.0% of the sector) slowed to 1.4%. In Q3-2020 (+1.4%), sector growth was further tapered as flooding, and low harvest yields impeded output growth.

Covid-19 and planting season dragged Agriculture sector growth

Sources: NBS, United Capital Research

That said, we still highlight the long-term growth potential of investing in the sector, given Nigeria’s, c.60% unutilized arable land, weak mechanization rate and low fertilizer penetration. However, we note that adequate investments must be made across the entire agro-business value chain, with supporting policies for age-long structural challenges, if the sector to be fully realised.

Is Agriculture Sector In 2021 Still A Growth Story?

Looking ahead, we expect the Agricultural sector to remain at the forefront of Nigeria’s diversification plan. Thus, we expect the Federal government to sustain its fiat-led interventions in the sector to drive growth. We expect an improved FG policy response, particularly on long-standing issues such as land use, farming methods, and farming input quality.

Advertisement

As the pandemic abates globally and locally, we expect growth in the Nigerian Agriculture sector to improve. In 2021, we anticipate annual growth of 2.5%, lower than the 5-year average growth rate of 3.0% due to overall instability in the key food-producing states.

READ: Konga Revitalizing Agriculture Sector In Nigeria Via E-Commerce

Facebook Comments
Advertisement
Brand News Day

Recent Posts

Stanbic IBTC Trustees Wins Diamond Award For Customer Focus At 2025 West Africa Innovation Awards

Stanbic IBTC Trustees, a subsidiary of Stanbic IBTC Holdings, has been recognised as the Most Customer-Focused…

3 days ago

Apple Unveils iPhone 17 Air, Slick, Slimmer Than Previous Models (PHOTOS)

Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…

1 month ago

Six-Year-Old Ella Shoots, Kills American Police Officer In Mother’s Defense

A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…

1 month ago

LIRS Urges Taxpayers To Meet March 31 Deadline For Annual Tax Return Submission

The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…

1 month ago

Stanbic IBTC Bank Partners Autochek To Boosts Car Ownership, Disburses N4Bn

Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…

1 month ago

Stanbic IBTC PMI®: Output Growth Accelerates To Fastest In Just Over One Year

The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…

1 month ago

This website uses cookies.