By: Lydia Zakka
Over the years, Nigeria has faced numerous challenges in its agricultural sector, from poor infrastructure to inadequate government support. Despite these struggles, one of the country’s most promising strategies for long-term economic development was its protection of the domestic agricultural market and a focus on enhancing the incomes of smallholder farmers. This policy, which sought to shield local farmers from the disruptive forces of cheap imports, was integral to fostering self-sufficiency, economic stability, and rural development.
Unfortunately, under the current APC-led administration of President Bola Tinubu, much of the hard-earned progress in this area has been sacrificed in favor of short-term political gains. In a troubling shift, the very policies designed to protect and uplift Nigeria’s farmers have been rolled back, threatening to undo years of painstaking work that was aimed at strengthening the backbone of Nigeria’s economy: agriculture.
The Impact on Agricultural Prices and Smallholder Farmers
One of the most noticeable consequences of these policy changes has been the drop in prices for some agricultural and consumer goods. While this might seem beneficial at first glance, particularly for consumers, it belies the long-term damage being done to the livelihoods of smallholder farmers across the country. These farmers, who represent the backbone of Nigeria’s agricultural sector, are now facing a brutal reality where the prices they receive for their produce are not reflective of the actual costs of production. Many of them, especially those involved in crop and livestock farming, are being forced into financial distress, unable to make ends meet.
In the past, policies that supported these farmers were instrumental in ensuring that they could not only survive but thrive. By limiting the influx of cheaper, foreign goods into the domestic market, Nigeria sought to create a more favorable environment for its farmers, encouraging investment in local agriculture and ensuring a steady income for rural communities. This policy framework was crucial for economic development, particularly in a country where over 60% of the population depends on agriculture for their livelihood.
However, by allowing the market to be flooded with cheap imports, the Tinubu administration has created an unlevel playing field. Local farmers now struggle to compete with lower-priced imported goods that do not reflect the realities of Nigerian production costs. This has created a cycle of poverty for smallholder farmers and a loss of agricultural competitiveness on the global stage.
The Disconnect with the Common People
While the prices of some agricultural products have fallen, this has come at a considerable cost. Internationally traded capital and quasi-capital goods, such as building materials and agricultural inputs, have remained stubbornly high. This price disparity continues to exacerbate the struggles of ordinary Nigerians, who find themselves unable to afford the basic materials required for construction or farming. The cost of fertilizers, seeds, and farming equipment has risen sharply, making it more difficult for local farmers to remain productive and competitive.
The rising costs of essential goods for local production, combined with a declining price for agricultural produce, create a double bind for Nigerians. It leaves smallholder farmers in an untenable situation, where they are unable to afford the means to improve their productivity while simultaneously earning less for their hard work. The result? Economic stagnation for rural populations and a growing divide between urban elites and the rural poor.
A Short-Term Political Strategy at Long-Term Cost
This economic imbalance, largely fueled by short-term political expediencies, has created a toxic environment for Nigeria’s agricultural sector. In a desperate bid for immediate political gain, the administration has forsaken policies that might have resulted in sustained, long-term growth. It’s clear that there is little consideration for the broader implications of abandoning such crucial protections for Nigerian farmers.
The administration’s focus on short-term political benefits, rather than sustainable economic growth and structural development, risks undermining the gains that were made in previous years. If the current trajectory is not reversed, the consequences could be dire, not just for farmers, but for the economy as a whole. The long-term repercussions of undermining Nigeria’s agricultural foundation are far-reaching, affecting food security, rural development, and overall economic stability.
The Path Forward
If Nigeria is to ensure the future prosperity of its agricultural sector, a return to sound economic policies is imperative. The government must prioritize the protection of local farmers from unfair foreign competition, reinvest in agricultural infrastructure, and offer financial incentives that support smallholder farmers. Policies that promote sustainable growth, rather than quick political wins, are the key to building a more resilient, self-sufficient economy.
Moreover, it is crucial that Nigeria invests in agricultural research and development to enhance productivity, innovation, and sustainability. The future of Nigeria’s agriculture lies in creating an environment where farmers can thrive in both the local and global market, supported by the right policies and infrastructure.
Ultimately, the current administration must take a step back and reassess its approach, considering not just the political outcomes of its decisions but the long-term economic well-being of Nigeria’s people. In doing so, it may find that the true path to national growth and prosperity lies not in short-term political games but in the hard, sustained work of nurturing the nation’s agricultural potential.
However, Nigeria’s agricultural sector is a critical component of its economic future, and the protection of smallholder farmers should not be sacrificed for short-term political gains. The current administration’s policies have put at risk years of progress made in the agricultural space, leading to a decline in farmer income and rising costs for the average Nigerian. As the country moves forward, it is vital that leaders prioritize policies that foster long-term economic growth, sustainable agriculture, and the well-being of all Nigerians. Only then can the country achieve true prosperity.
