The National Assembly has postponed the passing of the budget till May 2018. The major effect of this is a delay in the much needed funds required to kick-start economic activity. In the proposed bill, the FGN plans to increase its spending on agriculture by 14.6% to N118.98bn. This is exclusive of what each of the 36 states spends on agriculture.
Initiatives such as, the anchor borrowers programme, NISRAL and huge amounts of private equity investments are beginning to make a difference in the sector’s productivity. Thus, with a growth rate of 3.45% in 2017, the agricultural sector outperformed economic growth by 2.62%.
However, despite being the world’s 5th largest producer of agricultural output, Nigeria is yet to become food self sufficient. It imports approximately $3bn of agricultural commodities annually. Small scale rural farmers, who produce a significant portion of total output, are challenged by lack of funding and security unrests.
In this edition of the Bi-monthly Update, the FDC Think Tank analyzes the dynamics of the current agrarian reform and the impact of the securitisation of N2.7trn contractor debt by the FGN on your company, portfolio and strategy for 2018.
Enjoy your read!