Despite notable growth in the export of agricultural commodities in recent years, Nigeria continues to suffer a significant trade imbalance in the sector, according to Agripreneur Oluwasegun Alabi. He attributes this imbalance to the continued importation of processed food products such as wheat, sugar, and concentrates—items Nigeria has the capacity to produce at scale.
Oluwasegun Alabi, who is the Managing Director and CEO of Davidorlah Farms Nigeria Limited, made this observation during a media briefing at the House of Representatives on Thursday.
He revealed that in 2023 alone, the value of Nigeria’s agricultural imports exceeded exports by ₦1.037 trillion, marking the fifth consecutive year of trade deficits in the agricultural sector.
“This imbalance is primarily driven by our reliance on importing processed and finished food products—wheat, sugar, concentrates, and others—which we are fully capable of producing domestically,” Alabi said.
While acknowledging that oil remains Nigeria’s top source of foreign income, Alabi emphasized that agriculture is quietly emerging as a formidable economic driver. “Nigeria ranks fourth globally in cocoa exports and has enormous untapped potential in other crops. Yet, we continue to import large volumes of food—an indication that our agricultural systems need stronger support and better infrastructure,” he said.
He stressed that agriculture remains the cornerstone of Nigeria’s economy, with the potential to significantly boost GDP. With abundant arable land, a favorable climate, and a resilient labor force, Nigeria is well-positioned to leverage agriculture for sustainable economic growth.
Alabi further argued that the right legislative frameworks and policy interventions could dramatically boost Nigeria’s agricultural exports. “This would not only reduce our overreliance on oil but also shield the economy from the volatility of global oil prices. Revenue from agricultural exports can be reinvested into modern farming tools, better road networks, and smarter agricultural practices, thereby enabling farmers to produce more and earn more,” he noted.
He highlighted that agriculture currently contributes an average of 24% to Nigeria’s GDP and employs over 36% of the labor force. Strengthening this sector, he said, could enhance economic diversification, reduce food imports, and improve national food security and foreign exchange earnings.
Alabi also pointed out that the global shift away from fossil fuels—accelerated by climate change and international funding cuts for fossil projects—is creating new opportunities in agriculture. “Agricultural waste is increasingly being converted into biofuel, biogas, and biochar, offering a viable solution to waste management and energy needs. This transformation underscores the potential of agriculture not just as a food source, but as a foundation for innovation and sustainable development,” he said.
In conclusion, Alabi asserted, “Nigeria’s path to resilience and prosperity lies not beneath the ground in crude oil, but on the surface—in its farms. Agriculture remains the most viable tool for diversifying the economy, securing food supply, and driving foreign exchange earnings.”