Fed Govt Woos UK Investors To Agric Sector, Urges More Private Capital

The federal government has intensified efforts to attract foreign investment to the agricultural sector, with the Minister of Agriculture and Food Security, Abubakar Kyari, urging stronger collaboration with international partners to unlock the vast agribusiness potential.

Speaking at the Nigeria–United Kingdom Investment Forum in London, Kyari made a compelling case for greater private-sector participation, stressing that Nigeria’s ambition to build a climate-resilient and food-secure future cannot be achieved without substantial external financing.

He highlighted Nigeria’s comparative advantage as Africa’s largest agricultural market, noting its diverse agro-ecological zones and strong production capacity across key value chains such as rice, maize, cassava, cocoa, sesame and horticultural crops.

Kyari pointed out that the sector employs nearly 70 per cent of the labour force and contributes more than 24 per cent to the country’s Gross Domestic Product (GDP), making it a critical driver of inclusive growth, rural livelihoods and youth and women employment.

However, the minister warned that climate change poses an escalating threat to agricultural productivity, citing prolonged droughts, erratic rainfall, flooding and desertification as major risks to food security.

He stressed the urgent need for a transition to climate-smart agriculture.

Kyari acknowledged a significant financing gap in the sector, revealing that despite existing credit schemes, total agricultural lending estimated at N3.4 trillion as of April 2025, accounts for less than four per cent of agriculture’s contribution to GDP.

According to a statement issued by the ministry’s head of Information Department, Ezeaja Ikemefuna, the minister outlined key reforms under the administration of Bola Ahmed Tinubu, including the declaration of a national state of emergency on food security in 2023.

He said, “While public financing remains essential, unlocking the scale of investment required will depend on stronger participation from private capital and development finance partners.

Access to finance is a major constraint for farmers across Nigeria, significantly limiting productivity across the sector.

Nigeria has the market, the resources and the policy direction to drive agricultural transformation, but we must act collectively. Building resilient food systems is not only a national priority, but it is also a shared global responsibility.”

The minister also showcased a range of government-backed initiatives designed to de-risk investment and modernise the sector.

He urged UK investors to leverage emerging opportunities through joint ventures, innovative financing models and credit guarantee frameworks.