Wednesday, May 21, 2014

AGRICULTURE

 Until recently, Nigeria’s agriculture was neglected in favour of the oil sector.

However, falling oil prices, as well as the problems in the Niger Delta, has made the federal government to turn to agriculture as a new growth area.

The sector grew by an estimated 7.7% in 2007, compared to growth of 7.4% in 2006, and is expected to continue increasing.

Agriculture is dominated by traditional smallholders growing crops such as maize, palm oil, yams, cassava, rubber, ...cotton, soya bean and cashew nuts, tobacco, groundnuts and cocoa beans. Commercial farming is small and limited.

The federal government, faced with rising food prices and the large amounts of foreign exchange leaving the country to pay for imported food, has introduced several initiatives meant to revive and exploit the potential of agriculture. These include financial incentives (for companies processing food), subsidies (for farming equipment and fertiliser), and research initiatives into improved crop utilisation.

Inadequate processing capacity is one of the key structural deficiencies in the agricultural economy. Investment in this sub-sector consequently attracts pioneer status: tax holidays, tariff concessions, financing and export support. The country's agricultural products fall into two main groups: food crops produced for home consumption and exports.

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