Nigerian Agro-economy: Activating Commerce And Industrial Development (Part 2) (Re

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Reviewed by Toluwalase Solanke

Contributions Of Agriculture To The Industrial Development Of Nigeria

Agriculture supports industrial development in Nigeria in several ways:

1. Provision of Raw Materials.

   Agriculture provides the essential raw materials needed by many industries in Nigeria. For example, cotton from farms is used in textile factories, cocoa and palm oil are used in food and cosmetic industries, while rubber is used for making tyres, footwear and hoses. Without these agricultural products, many industries would not have the materials required for production. Therefore, agriculture serves as the foundation upon which many industrial activities depend, helping industries to grow and operate efficiently.

2. Market for Industrial Goods.

   Agriculture creates a ready market for goods produced by industries. Farmers buy tools, machinery, fertilisers, pesticides, packaging materials and other manufactured products to support their farming activities. The demand for these goods encourages the growth of industries that produce them. For instance, companies that manufacture tractors, irrigation equipment and processing machines benefit greatly from the agricultural sector. This continuous exchange between agriculture and industry helps to sustain industrial growth and increase national productivity.

3. Provision of Capital for Investment.

   Agriculture contributes to the generation of capital that can be invested in industrial development. When agricultural products such as cocoa, palm produce and groundnuts are exported, the income and foreign exchange earned can be used to establish and expand industries. In the early years after Nigeria’s independence, revenue from agricultural exports played a major role in setting up many industries and infrastructure projects. This shows that agriculture helps to provide the financial foundation for industrial growth and national development.

4. Employment for Industrial Workers.

   Agriculture plays an indirect but important role in employing industrial workers. The food produced by farmers feeds the population, including those working in factories, construction sites and offices. When people have access to sufficient and affordable food, they can work efficiently and contribute more to industrial productivity. In this way, agriculture supports the wellbeing and stability of the industrial workforce, which is essential for the growth of the manufacturing sector.

5. Encouragement of Agro-Allied Industries.

   Agriculture has led to the rise of many agro-allied industries in Nigeria. These are industries that depend directly on farm products as their main inputs. Examples include flour mills, oil mills, breweries, sugar refineries and dairy factories. For instance, cassava is processed into flour and starch, while maize is used in producing animal feed and beverages. By providing raw materials for these industries, agriculture stimulates industrial activity, creates jobs and increases the value of agricultural output through processing and packaging.

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Activities Of The Marketing Boards In Nigeria

Marketing Boards were established in Nigeria to control the buying and selling of agricultural products, especially export crops. Examples of marketing boards include Cocoa Marketing Board, Groundnut Marketing Board, Palm Produce Marketing Board and Cotton Marketing Board. Their main activities include;

• Buying Produce from Farmers at Guaranteed Prices.

  One of the main activities of the Marketing Boards in Nigeria was to buy agricultural produce directly from farmers at fixed or guaranteed prices. This meant that even if market prices dropped, farmers were assured of selling their crops at a stable rate. It helped protect farmers from losses due to price fluctuations and encouraged them to produce more. For example, the Cocoa Marketing Board bought cocoa beans from farmers in the western region at prices that were often higher than what middlemen offered.

• Storing, Grading and Transporting Agricultural Produce.

  After buying the produce, the Marketing Boards were responsible for storing, grading and transporting it to various locations. Grading involved sorting the products according to quality and size, which made it easier to sell them in both local and international markets. The boards also built storage facilities such as warehouses to prevent spoilage and loss of produce, especially during harvest periods with high supply. Systems like trucks and rail services, to move goods efficiently from rural areas to ports or factories were provided.

• Selling Farm Produce in Local and Foreign Markets.

  Another major activity of the Marketing Boards was the sale of farm produce, both within Nigeria and to international buyers. The boards acted as intermediaries between local farmers and foreign importers, helping to promote Nigerian products such as cocoa, palm oil, cotton and groundnuts abroad. By selling in bulk, the boards were able to negotiate better prices, earn foreign exchange for the country and ensure that Nigerian agricultural products met export standards.

• Stabilising Prices to Protect Farmers and the Economy.

  The Marketing Boards also helped to stabilise the prices of agricultural products. Since prices in the world market could rise and fall due to economic conditions, the boards used price stabilisation schemes to protect farmers. They did this by saving money when prices were high and using it to support farmers when prices fell. This helped to maintain steady income for farmers and reduced the risk of sudden economic hardship in rural areas that depended heavily on agriculture.

• Encouraging Production and Providing Technical Support to Farmers.

  The Marketing Boards encouraged agricultural production by supporting farmers with advice, training and sometimes farming inputs. They sent extension officers to rural communities to teach better farming techniques, such as pest control and improved harvesting methods. The boards also provided incentives like loans, fertilisers and improved seedlings to help farmers increase their yields. This activity was meant to boost the quantity and quality of agricultural produce available for sale and export.

• Managing Export Earnings and Promoting National Development.

  In addition to handling local sales, the Marketing Boards managed the export earnings from agricultural products. The foreign exchange earned was used by the government to fund development projects such as building schools, roads, and hospitals. Through this activity, the boards played a key role in supporting the national economy and promoting rural development in Nigeria.

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Some Government Agricultural Reforms in Nigeria

Over the years, the Nigerian government has introduced several reforms and programmes to boost agricultural production.

Examples include

1. Operation Feed the Nation (OFN) – 1976.

   The Operation Feed the Nation (OFN) programme was launched in 1976 by the military government of General Olusegun Obasanjo. Its main goal was to make Nigeria self-sufficient in food production and reduce the country’s dependence on imported food. The programme encouraged every Nigerian—students, civil servants and rural dwellers—to participate in farming, even on small plots of land. The government provided seeds, fertilisers and farm tools at subsidised prices to support farmers. Although the programme created awareness about the benefits of agriculture, it did not achieve lasting success because of poor organisation, inadequate funding and lack of follow-up support for farmers.

2. Green Revolution Programme – 1980.

   The Green Revolution Programme was introduced in 1980 by President Shehu Shagari’s civilian government to boost agricultural productivity and ensure food security in Nigeria. It aimed to expand both crop and livestock production through mechanised farming and improved agricultural inputs such as fertilisers and hybrid seeds. The programme also focused on reducing food imports and making the country more self-reliant. Although the Green Revolution achieved some progress in increasing awareness about modern farming methods, it eventually failed due to corruption, poor management and lack of continuity after a change of government.

3. National Agricultural Land Development Authority (NALDA).

   The National Agricultural Land Development Authority (NALDA) was established in 1992 to make land available and suitable for large-scale farming. Its main responsibility was to help develop rural farmlands by clearing, levelling and preparing them for cultivation. NALDA also provided farmers with technical assistance, access to improved seedlings and information on better farming techniques. By reducing the problem of land preparation and helping small-scale farmers increase productivity, NALDA supported efforts to achieve food security. However, it was later suspended for several years and only reactivated in recent times to continue land development and youth engagement in agriculture.

4. River Basin Development Authorities.

   The River Basin Development Authorities were created in 1976 to make use of Nigeria’s rivers and water resources for agricultural purposes. Their main aim was to provide irrigation facilities for farmers, especially in dry regions, to enable all-year-round farming instead of depending only on rainfall. The authorities also engaged in fishery development, rural water supply and soil conservation. Through irrigation projects, they helped farmers produce crops like rice and vegetables even during the dry season. However, many of the river basin projects faced challenges such as mismanagement, lack of maintenance and inadequate funding, which limited their overall impact.

5. Agricultural Development Projects (ADP).

   The Agricultural Development Projects (ADP) were launched in the 1970s with support from the World Bank to improve agricultural productivity in rural areas. The ADPs aimed to bring modern farming techniques directly to farmers through extension officers. They provided improved seeds, fertilisers, pesticides and farm tools at subsidised rates. The projects also constructed roads, irrigation systems and storage facilities to make farming more efficient. The ADP model, which started in a few pilot states, was later expanded across Nigeria and became among the most successful agricultural programmes in reaching rural farmers and improving food supply.

6. Anchor Borrowers’ Programme (ABP).

   The Anchor Borrowers’ Programme (ABP) was launched in 2015 by the Central Bank of Nigeria to support small-scale farmers with loans, seeds, fertilisers and other inputs. The programme connects smallholder farmers (the borrowers) with large-scale buyers or processing companies (the anchors), ensuring that whatever the farmers produce will be bought at agreed prices. This arrangement helps farmers access credit and guarantees a market for their produce. The ABP has been particularly successful in promoting the production of rice, maize and other key crops. It has improved food security, reduced importation and strengthened thousands of farmers across Nigeria.

Lesson Summary

• Agriculture contributes to economic and industrial development through job creation, food supply, export earnings and raw materials.
• Marketing Boards helped stabilise crop prices and promote exports.
• The Nigerian government has launched many reforms to boost agricultural growth and achieve food security.