Despite agriculture’s central role in Nigeria’s economy and food security, the Federal Government has committed an average of just 1.4 per cent of its annual budget to the sector over the past nine years, raising concerns among industry practitioners about the pace of agricultural development.
Chairman of Origin Automobile Works, Joseph Samuel, stated this over the weekend in Lagos while speaking at the 25th anniversary of the company.
According to him, government intervention in agriculture was inevitable, but he regretted that funding levels had not matched the sector’s strategic importance to national growth, employment, and security.
Samuel also spoke on the challenges confronting Nigeria’s agricultural sector, particularly mechanisation, productivity, and food security. He noted that while budgetary allocations had helped to sustain some level of activity, they had not delivered the scale required to transform agriculture into a globally competitive sector.
Samuel further disclosed that Nigeria records annual tractor sales of about 1,200 units, most of which are procured through government programmes rather than private sector investment.
He said: “The Federal Government has supported the development of the agricultural sector with an average of 1.4 per cent of its total annual budget in the last nine years. Government will continue to intervene in agriculture, but intervention alone is not enough. According to the Budget Office of Nigeria, most tractors sold annually are acquired by government. This shows that mechanisation is still largely dependent on public spending.”
He pointed out that Nigeria currently has fewer than 0.3 tractors per 1,000 hectares of farmland, far below international benchmarks, noting that even the recent launch of 2,000 tractors by the Federal Government remains inadequate when measured against national demand.
The Origin Automobile Works Chairman explained that Nigeria’s farming structure also limits the effectiveness of government spending, as about 98 per cent of farmers operate at smallholder and subsistence levels. He explained that most farming in Nigeria is done in backyards, stressing that this reduces productivity, makes mechanisation expensive, and limits competitiveness.
According to him, small, scattered farms increase the cost of servicing farmers and dilute the impact of budgetary support and intervention programmes.
Samuel linked the underdevelopment of agriculture to rising insecurity, arguing that structured and well-funded farming systems could help stabilise rural communities. He pointed out that agriculture should be treated as a long-term national investment rather than a short-term political project.
He further described agriculture as a long-gestation sector, warning that frequent policy changes undermine the impact of government spending. He posited that stronger collaboration between government and private enterprises would help sustain agricultural programmes beyond political tenures.
While acknowledging government efforts, Samuel said Nigeria must pursue large-scale agricultural investments to maximise returns from public spending. He disclosed that Origin Automobile Works was investing heavily in agricultural equipment and capacity development to complement government efforts, adding that several large-scale agricultural projects would be unveiled in the coming months.
