Nigeria’s economy has undergone a gradual transformation, shifting from a dependence on crude oil to a more diversified structure where agricultural commodities are playing an increasingly important role.
Over the years, agricultural exports such as cocoa, cashew nuts, and sesame seeds have not only boosted non-oil revenue but also enhanced Nigeria’s position in global trade.
In 2024, agriculture emerged as the third-largest contributor to the nation’s total exports, recording a surge of over 250% in value compared to the previous year. This growth reflects the increasing global demand for Nigerian agricultural products, highlighting their importance in generating foreign exchange earnings, creating employment opportunities, and promoting rural development.
By strengthening key value chains and opening access to international markets, agricultural commodities are steadily positioning themselves as a cornerstone of Nigeria’s economic survival and long-term competitiveness.
The Minister of Agriculture and Food Security, Abubakar Kyari, explains that Nigeria’s journey to economic survival and global competitiveness lies in breaking away from oil dependency and building a robust non-oil export economy anchored on agriculture, value addition and industrialisation.
In 2024, Nigeria’s agricultural exports emerged as the third-largest contributor to the country’s overall exports, following crude oil and other oil products, which experienced significant growth over the previous year. This rise highlights the probable growing global demand for Nigerian agricultural products and the increasing importance of agriculture in the nation’s economic diversification strategy.
The National Bureau of Statistics, in its quarterly analysis, stated that Nigeria’s agricultural exports maintained a steady growth trajectory from the third to the fourth quarter of 2024, reflecting a rise in response to global demand and the sector’s role in the nation’s export performance.
Agriculture has remained a critical part of Nigeria’s non-oil export sector, contributing significantly to foreign exchange earnings. While crude oil continued to dominate the exports (65.44% of total exports), non-crude oil exports, including agricultural products, accounted for 34.56%.
Nigeria’s agricultural sector accounted for approximately 5.73% of total exports, valued at about ₦77 trillion. The sector’s export value surged by over 250% from ₦1.24 trillion in 2023 to ₦4.44 trillion in 2024, reflecting strong growth and increasing global demand for Nigerian agricultural products.
Agricultural exports contribute to Nigeria’s non-oil revenue and help diversify its foreign exchange earnings. Some of the commodities include:
Agricultural exports offer numerous benefits to Nigeria’s economy, it serves as a vital tool for economic diversification, other benefits include:
1. Foreign Exchange Earnings: Agricultural exports provide vital foreign currency, helping to stabilise Nigeria’s foreign reserves and reduce dependence on oil revenues. The naira has lost over 70 per cent of its value from June 2023 to date, allowing agribusinesses to swim in a massive volume of money as a result of the dollar/naira exchange rate. The surge in agricultural exports in 2024 was partly a result of the depreciation of the naira, which made Nigerian products more competitive internationally.
2. Job Creations and Rural Development: Agricultural exports supports millions of farmers, processors, and traders across Nigeria, fostering employment and improving incomes in rural areas. The cocoa and cashew value chains, in particular, generate substantial direct and indirect jobs, improved infrastructure, access to markets, and living standards.
3. Trade Surplus and Economic Diversification: In 2024, Nigeria recorded a trade surplus in agricultural products for the first time since 2020, with exports exceeding imports by 17%. This significant difference highlights progress in diversifying the economy away from oil dependence.
4. Market Access and Value Chain: Agricultural exports have expanded Nigeria’s trade relationships with major export destinations, including Asia and Europe. This integration supports Nigeria’s participation in regional and global value chains.
Despite the advantages that agricultural exports offer, some challenges are still encountered, such as:
Agricultural exports can boost Nigeria’s economic growth through benefits such as generating foreign exchange, creating employment opportunities, and strengthening rural communities. Commodities such as cocoa, cashew nuts, and sesame seeds have driven export growth in recent years, helping Nigeria diversify its economy and reduce its reliance on oil.
Continued investment in infrastructure, quality improvement, and market access will be key to sustaining economic growth.
