In the second quarter of 2023, investments in Nigeria's agricultural sector fell 83 percent to $10 million, compared to $57.41 million in the second quarter of 2022.
According to the latest capital import report from the National Bureau of Statistics (NBS), the agricultural sector accounted for 0.97 percent of the country's $1.03 billion foreign direct investment from April to June 2023.
On a quarter-on-quarter basis, investment in the sector surged 107% from $4.84 million in Q1 2023 to $10 million in Q2 2023.
The fisheries subsector of the agricultural sector did not attract any investment during this period.
Investment in Nigeria in general has been falling because of the economic downturn. In the second quarter of 2023, investment in the Nigerian economy fell 33% to $1.03 billion, compared to $1.535 billion in the second quarter of 2022, a 9% decrease compared to $1.132 billion in the first quarter of 2023.
The National Bureau of Statistics said in its second quarter GDP report that in terms of share of GDP, the agricultural and industrial sectors contributed less to the total GDP in the second quarter of 2023 compared to the second quarter of 2022.
The agricultural sector has suffered a series of shocks recently. Farmers do not feel safe when they go to their farms, which further affects food security and food prices in Nigeria.
Abiodun Ol orondenro, operations manager at Aquashoots Limited, said the government needed to create an enabling environment and address the worsening insecurity to attract more investment into the industry.
The industry's profits have also been hurt by an increase in major inputs. This, coupled with insecurity and climate change, makes it harder for many farmers to make a profit and discourages future investment.
In response to questions, AfricanFarmer Mogaji, CEO of X-Ray Consulting, said there have been a lot of shocks that have affected the industry for some time, which may also have affected the level of investment attracted.
In addition, the chronic cash shortage caused by the replacement of the highest denomination national currency has hindered the development of the economy, especially the informal sector.