The agriculture sector in Nigeria has experienced a decline in growth and economic contribution in the second quarter of 2024 (Q2’24), largely due to ongoing insecurity and conflicts between farmers and herders.
According to the latest Gross Domestic Product (GDP) figures, the sector’s contribution to the economy decreased to 22.61%, down from 23.01% in the same period last year. The sector’s growth rate also fell to 1.41%, from 1.50% a year ago. However, on a Quarter-on-Quarter basis, the growth rate improved by 1.22 percentage points from the previous quarter.
Crop production remains the primary driver of the sector, representing 87.48% of its nominal value during Q2’24. Despite this, challenges such as security issues and disruptions in supply chains have significantly affected production levels.
David Adonri of Highcap Securities attributed the slowdown to attacks by bandits and terrorists, which have hampered agricultural productivity. He called for increased government action to address these security threats and to promote local production of farm machinery.
Mercy Okon of Parthian Securities Limited highlighted additional factors such as climate and weather-related issues, including flooding, as well as rising costs of agricultural inputs due to high foreign exchange rates. These factors have compounded the difficulties faced by farmers, further impacting agricultural output.
