Prospects and problems for foreign investment in Nigerian agriculture

Abstract

The encouraging experience of some African countries regarding the involvement of foreign investors in their agricultural sector and the determination of the Nigerian government to follow suit motivated this discussion on the prospects and problems of such a policy in the Nigerian context. It is, however, evident that Nigeria has enough natural resources to support any foreign investor willing to participate in the country's agricultural development programme. The country's land, which extends from the tropics to the desert, is fertile and could sustain a variety of crops that can be marketed both within and outside the country: only a third of this arable land is currently under effective cultivation. In addition, the Nigerian government is encouraging private investment in large-scale agriculture with new incentives that include an increase in the share of foreign investors in agriculture, tax relief on new agricultural business, generous credit facilities, and provision of essential infrastructural facilities. Nonetheless, problems such as the communal land tenure system, marketing and distribution of produce, irregular supply of electricity and water, and inefficient telecommunication systems were identified as possible factors that can jeopardize the successful involvement of foreign investors in Nigerian agriculture.