Highlights
- Agricultural sector contributed 16.8% to Nigeria’s GDP 2024Q1
- Crop production is the highest contributing activity to the GDP with about 14.8% to total GDP and 80% in the agricultural sector
- Crop production for 2024 Q1 falls by 61% against 2023 Q4.
- 2024Q3 agricultural sector performance is projected to earn about 13,178,149.66 to the GDP.
Introduction
Globally, the agricultural sector now accounts for 4% of global gross domestic product (GDP) and more than 25% of GDP in developing countries (World Bank Overview, 2024). Analysts project that the agriculture sector and its market is projected to amount to US$4.59tn in 2024 with an annual growth rate of 3.76% (CAGR 2024-2029), resulting in gross production value of US$5.52tn by 2029.
In Nigeria, agriculture contributes about 26% to nominal GDP annually. This figure was lower however in the fourth quarter of 2020 and lower than the third quarter of 2021 which recorded 24.23% and 26.57% respectively. In 2022, the agricultural sector accounted for 23.69% of the GDP and 24.01% of the GDP in 2023. This is showing a steady rise in the productivity of this sector.
Definition:
The Agriculture sector in Nigeria comprises of establishments primarily engaged in growing crops, raising animals, and harvesting fish and other water animals. The agriculture sector is a combination of economic activities involving the production, distribution and exchange of agricultural products, such as cereals, fruit, vegetables, and oil crops, as well as livestock and dairy products. This sector consists of producers and sellers of agricultural produced, an exchange attributed to the fast growing market in the sector. In addition, the sector employs more than 36% of the Nigerian labour force, a feat which ranks the sector as the largest employer of labour in the country.
Composition of the Agricultural sector market in Nigeria
Four sub-activities make up the Agricultural sector in Nigeria: Crop Production, Livestock, Forestry and Fishing (Nigeria Bureau of Statistics, 2024).
The Agricultural Market
Definition
The agricultural market involves the exchange and sale of various agricultural items like crops, fishes and water animals and livestock products. In recent years, there has been a significant increase in the demand for crops and livestock products, which has resulted in the growth of these markets. The increasing demand for these product is driven by factors like population growth, changing diets, and urbanization. The earning from the agricultural market, makes up the earnings of the sector.
Globally, the agricultural market size has grown strongly in recent years. It has growth from $13272.75 billion in 2023 to $14356.23 billion in 2024 at a compound annual growth rate (CAGR) of 8.2%. World Bank, (2024) stated that a developed agricultural sector is projected to feed 10 billion people by 2050. Growth in the agriculture sector is two to four times more effective in raising incomes among the poorest compared to other sectors. With this laid out, we need to see how far the Nigeria agricultural market is fairing.
The Nigeria Agricultural Sector and Market Performance 2024
According to the Nigeria Bureau of Statistics (2024), the agriculture sector grew by 0.18%, from the growth of -0.90% recorded in the first quarter of 2023. Crop production contributed about 19.27% to the overall GDP.
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