Agribusiness Risk Management in Nigeria - A Conceptual Analysis

Abstract

The paper examines agribusiness risk management in Nigeria and discusses its role in transforming food production practices to attain food security and sustainable economic development. Risk is inherent in all the segments of the agricultural value chain. It is the responsibility of farmers to manage the adverse consequences of taking risks involved in food production, while financial institutions, governments, and donor agencies in developing nations play notable roles in ameliorating disasters considered beyond the control of the farmer. The reward for investing in agricultural business and bearing the risk is profit. The paper analysed the concept of agribusiness, various risks inherent in food production and ways to manage them effectively. It is recommended that the stakeholders in risk management, such as the farmer/producer, government, financial institutions, and donor agencies prevalent in developing nations, must work assiduously to identify, mitigate, transfer or cope with the risks in agribusiness to ensure food security in the country.