The Agricultural Promotion Policy (APP), also known as The Green Alternative, was launched between 2016 and 2020 to revive its agricultural sector. It aimed to boost food security, modernise farming systems, reduce dependence on food imports, stimulate rural economic growth, and promote agribusiness and economic diversification.
The APP launched by President Muhammadu Buhari was built on the achievements and gaps of the earlier Agricultural Transformation Agenda (ATA), which was implemented from 2011 to 2015. It recognised that while agriculture remained a major employer and contributor to Nigeria’s GDP, the sector had been held back by low productivity, outdated practices, and poor infrastructure.
The policy’s key focus was to transform agriculture into a private sector-led, business-oriented industry. This policy was to be overseen by the Federal Ministry of Agriculture and Rural Development [FMARD].
Despite having vast arable land and a large agricultural workforce, Nigeria spends billions of dollars yearly on food imports. Many rural farmers struggle with access to quality inputs, markets, and training, which results in low yields and income. The Agricultural Promotion Policy (APP) aimed to transform agriculture into a business and enhance value chains. This initiative sought to make Nigeria self-sufficient in food production and establish the country as a net exporter of agricultural products.
The APP was Nigeria’s strategy to reposition agriculture as a key driver of inclusive growth, job creation, and national development, putting the country on a path to long-term prosperity.
With the dual goals of ensuring food security and diversifying the economy away from oil dependence, the APP set clear objectives to address systemic challenges and unlock the sector’s potential. It was structured around these core objectives:
To achieve its objectives, the APP was anchored on five strategic pillars:
The APP prioritised adopting modern agricultural technologies to transition farmers from subsistence to commercial production. This included encouraging mechanisation, precision agriculture, improved irrigation systems, and climate-smart practices that enhance productivity and sustainability.
To support this shift, the government introduced innovation incentives such as targeted subsidies, low-interest loans, and support schemes that eased the financial burden of adopting new technologies. These measures boosted yields while making farming more efficient and attractive, especially to the youth.
Having recognised that poor infrastructure was a major bottleneck in the sector, the APP strongly emphasised improving rural connectivity. This involved upgrading rural roads, storage facilities, and market centres to facilitate the efficient movement of goods from farm to market, thereby reducing post-harvest losses and improving access to larger markets.
Additionally, the policy directed investments towards expanding access to reliable energy and water infrastructure in farming communities, particularly in underserved and remote areas where inconsistent services had long hindered agricultural productivity.
The APP focused on improving market access and strengthening agricultural value chains to ensure farmers could profit from their efforts. This included promoting ICT and digital platforms to connect farmers directly with buyers and input suppliers, reducing intermediary costs and improving price transparency.
The policy supported the development of local value chains by encouraging the growth of agro-processing industries, enhancing rural industrialisation, and fostering linkages between smallholder farmers and larger agribusinesses.
Given the significant skills gap in modern farming techniques, the APP invested heavily in capacity building across the sector. It launched nationwide training programs targeting farmers, cooperatives, and youth to improve technical know-how and agribusiness management.
Furthermore, the policy aimed to revitalise and expand agricultural extension services to ensure the timely dissemination of innovations, best practices, and climate-resilient methods. These efforts were critical for empowering farmers and bridging the knowledge gap, especially in rural communities.
Access to finance has historically been a major barrier for Nigerian farmers. To address this, the APP introduced tailored financial solutions such as agricultural insurance schemes, credit guarantees, and accessible loan options designed to reduce risk and stimulate agricultural investment. Notably, the Anchor Borrowers’ Programme (ABP), launched under the APP, provided credit to smallholder farmers,
The policy also created a more favourable investment climate through regulatory reforms and fiscal incentives to attract local and foreign investors. These initiatives were intended to foster public-private partnerships and encourage large-scale, commercially viable agribusiness ventures.
The Agricultural Promotion Policy (APP) marked a strategic shift in Nigeria’s approach to agriculture, positioning it as a business rather than just a development project by the government. This impacted farmers, agribusinesses, and the broader national economy, laying the groundwork for sustainable growth, food security, and economic diversification.
Implications for farmers
The APP was designed to transform the lives of Nigerian farmers by modernising their practices and enhancing their earning potential. Farmers were better equipped to boost productivity and reduce post-harvest losses through increased access to mechanisation, improved seed varieties, and climate-smart techniques. Targeted subsidies, low-interest loans, and agricultural insurance schemes helped reduce the financial risks of adopting new technologies.
To further support farmers, the policy prioritised training and extension services. These initiatives equipped farmers, especially youths and women, with the knowledge and business skills required to operate modern machinery and embrace innovative farming methods. Additionally, developing agro-processing zones brought value addition closer to farms, reducing spoilage and increasing profitability. The policy helped ensure that farmers could sell their produce at fair and competitive prices, ultimately raising the standard of living in rural communities.
Implications for agribusinesses and rural economies
The APP created a more favourable environment for agribusinesses by focusing on value chain development and encouraging private sector participation. With improved rural infrastructure, such as roads, storage facilities, and energy access, agribusinesses could expand operations, lower logistics costs, and increase overall efficiency. Digital marketplaces allowed direct links between producers, processors, and buyers, improving transparency and reducing transaction costs.
Promoting cluster-based farming systems and agro-industrial hubs stimulated rural industrialisation and entrepreneurship. These developments contributed to job creation, particularly in underserved areas, and spurred investment across the agricultural value chain. As a result, rural economies experienced increased economic activity, reduced regional disparities, and strengthened local resilience.
Implications for the national economy
At the national level, the APP played a critical role in Nigeria’s efforts to diversify its economy beyond oil. The country’s food import bill, which stood at $4.7 billion in 2024, was reduced. The growth of local processing industries added value to raw produce, strengthened exports, and increased the agricultural sector’s contribution to GDP.
In addition, the policy contributed to national development goals by addressing youth unemployment through agribusiness opportunities, encouraging innovation, and creating jobs across the entire value chain from input supply to processing and distribution. The APP helped build a more resilient and inclusive economy, better equipped to withstand global shocks and price fluctuations.
While the agricultural promotion policy presented a bold vision for transforming Nigeria’s agricultural sector, its implementation encountered several critical challenges:
Modernising Nigeria’s agricultural sector demanded significant investment, but funding constraints limited progress. Despite the APP’s ambitions, inadequate public budgets and limited private sector engagement led to underfunded projects. For instance, the Anchor Borrowers’ Programme (ABP), aimed at providing credit to smallholder farmers, faced bureaucratic inefficiencies and issues with loan repayments, leading to a limited impact on crop yields.
Many smallholder farmers, who comprise the bulk of Nigeria’s agricultural workforce, lack access to affordable credit due to collateral demands and weak rural banking infrastructure—poor infrastructure, such as inadequate roads, electricity, and irrigation, further delays implementation. Farmers in rainfed zones that depend on rainfall are particularly vulnerable to climate change, contributing to significant post-harvest losses.
Frequent changes in leadership and agricultural policies undermined the consistency needed for long-term planning and execution. The transition from previous policies, like the Agricultural Transformation Agenda (ATA), created confusion and overlaps in implementation.
Bureaucratic inefficiencies and slow fund disbursements often delay projects, limiting their reach and impact. Furthermore, rising insecurity in farming communities, especially in the North, due to farmer-herder clashes and insurgency, has disrupted production, displaced farming populations, and reduced yields.
Technology and knowledge gaps remained a major obstacle during the APP era. Limited digital infrastructure in rural areas made it difficult for farmers to access market platforms, weather forecasts, or precision agriculture tools.
Extension services were underfunded, and their capacity to train farmers couldn’t keep up with the fast-changing agricultural landscape. Many rural farmers were also hesitant to adopt new methods, partly due to cultural preferences for traditional practices and limited trust in government programmes.
The APP’s focus on production reduced efforts to strengthen value chains and market systems. Many farmers lacked access to structured markets, forcing them to sell produce at low prices or incur losses due to spoilage. Storage infrastructure and real-time pricing tools were largely unavailable in rural communities.
In addition, volatile commodity prices and minimal price support systems exposed farmers to risk, deterring long-term agricultural investment. These weaknesses limited private sector participation and slowed rural economic growth.
The Agricultural Promotion Policy (2016–2020) was a major step toward repositioning agriculture as the backbone of Nigeria’s economy. While it laid the foundation for growth, underfunding, poor coordination, and insecurity limited its full impact. To truly unlock Nigeria’s agricultural potential, future strategies must prioritise stability, inclusive implementation, and long-term investment so that we can build a resilient rural economy.
