Nigeria’s agricultural sector offers significant opportunities for business growth and investment, but insecurity, rising production costs, inadequate infrastructure and inconsistent government policies continue to constrain its potential, according to the Managing Director of B.O. Farm Limited and Chairman of the Agriculture Group of the Lagos Chamber of Commerce and Industry, Mr. Sunday Banjoko.
Speaking on Trader’s Breakfast Business Breaker, Banjoko called for increased investment in agricultural processing, commodity trading, storage facilities, mechanisation and modern farming technology, stressing that agriculture can be profitable when businesses adopt sound financial management and a long-term approach.
Banjoko, a trained geophysicist, disclosed that he ventured into agriculture in 2013 as a means of diversifying his income, but the business eventually became his primary occupation after about three years. Drawing on his experience, he explained that agricultural profitability depends on patience, practical knowledge and careful assessment of production costs against prevailing market prices.
He identified processing, commodity trading, logistics and export as promising investment opportunities along the agricultural value chain, noting that many investors prefer these areas because primary production often involves significant uncertainties and operational challenges.
The agribusiness expert advised prospective investors to calculate expenses, including labour, inputs, transportation and other operating costs, before commencing production. He recalled an export opportunity his business considered but abandoned after discovering that the cost of delivering its products to the United Kingdom would exceed prevailing market prices.
On access to finance, Banjoko advised small and medium-scale agricultural businesses to expand gradually, reinvest part of their profits and explore affordable financing or equity partnerships instead of accumulating excessive debt.
He also highlighted insecurity as a major challenge affecting farming operations, food availability and investor confidence. According to him, restricted access to farmland in some communities has limited production, contributing to supply shortages and rising food prices. However, he observed that improved security in certain areas has encouraged renewed investment, particularly in agricultural processing and plantation development.
Banjoko further called for urgent action to reduce post-harvest losses, identifying poor rural roads, inadequate cold-storage facilities, insufficient grain silos and limited financing for commodity aggregators as major obstacles. He urged the government and private sector to invest in these areas to ensure that more agricultural produce reaches markets in good condition.
He also advocated the establishment of effective commodity boards to purchase produce during periods of high supply, preserve it and release it strategically during shortages. According to him, such a system could help protect farmers’ earnings, reduce waste and moderate seasonal food price fluctuations.
On technology, Banjoko stressed that mechanisation, agricultural drones, GPS-enabled equipment and digital weather forecasting tools are increasingly essential to improving productivity. He said farmers must adapt to changing weather patterns by adjusting planting schedules and using reliable forecasts to plan their operations.
The LCCI agriculture group chairman also expressed concern over import waivers on commodities such as maize, rice and palm oil, arguing that cheaper imports can discourage local production and undermine investments in domestic processing. He urged the government to maintain consistent policies that support local producers while recognising the country’s legitimate import requirements.
To attract more young Nigerians into agriculture, Banjoko called on the media to showcase successful farmers and profitable agricultural businesses. He noted that opportunities now extend beyond manual farming to drone operations, agricultural engineering, digital monitoring and other technology-driven services.
Looking ahead to the next five years, he urged the government to implement supportive agricultural policies, strengthen commodity market systems and prioritise the recapitalisation of the Bank of Agriculture. He also called on private investors to adopt a medium- to long-term perspective, while encouraging farmers to monitor market trends, maintain accurate financial records and build stronger business networks.
Banjoko maintained that Nigeria’s agricultural sector can become more productive, profitable and sustainable through coordinated action by government, investors and farmers.
He stressed that consistent policies, improved infrastructure, accessible financing and modern technology are essential not only to strengthening food security but also to attracting investment, creating employment and building a more resilient Nigerian economy.
SOURCE: TRADE FM
