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Decoding Nigeria's agricultural policy innovation and looking for opportunities for Chinese enterprises to enter the market

author:35 dou

The article is transferred from the 35 bucket WeChat public account Author: Han Ying

Nigeria, a country with a long history of agriculture, has always been an important pillar of its economy. In the early days, agriculture was mainly self-sufficient, but under British colonial rule, its agricultural economy shifted to the international market, mainly engaged in the production of cash crops such as cocoa, palm, peanuts, and cotton. These crops have not only become a major export force for Nigeria, but have also shaped the specific agricultural geography.

However, Nigeria's agricultural structure is still homogeneous, with a widespread small-scale peasant economy, backward production technology, and inefficient use of arable land resources. According to Oxfam's 2019 report, Nigeria ranks at the bottom of the list of countries with the most poor people in the world, with 69% of Nigerians living below the poverty line and 125th out of 145 countries for gender inequality. UNICEF's 2019 report also shows that half of the country's children under the age of five are malnourished.

Decoding Nigeria's agricultural policy innovation and looking for opportunities for Chinese enterprises to enter the market

Source: Wenxin Yige AI model creation

Agriculture is the foundation that underpins Nigeria's food system and is essential for promoting inclusive and sustainable economic growth, and successive governments have committed to the development of the agricultural sector to improve the food system to increase the availability of nutritious and affordable food for the population and ensure ecological sustainability.

Innovation is lagging behind, the environment is unstable, and agricultural "hidden worries" are continuous

The challenges facing Nigeria's agriculture range from multiple dimensions, including policy level, climatic factors, technological backwardness and social issues, which are intertwined and threaten food security.

In terms of policy, policy incoherence and incoordination, unstable policy environment, frequent and inconsistent policy changes have led to a setback in the enthusiasm of private investment in agriculture, and fragmentation and overlapping policy institutions: there are functional fragmentation and conflicts between different agricultural policy-making and implementation agencies, which have failed to form effective synergies.

At the level of science and technology, Nigeria's agricultural technology lags particularly prominently. The technical level of agriculture and processing and storage is not high, and the application of scientific and technological innovation is insufficient. Lack of data and information systems: The lack of systematic, regularly updated comparable agricultural data and information is detrimental to scientific decision-making and planning. Insufficient development of the value chain: The low degree of integration of the value chain from production to sales limits the development of value-added links and the improvement of economic benefits.

In addition, as irrigated agriculture dominates the country's agricultural structure, extreme weather events, rainfall variability and frequent droughts and floods brought about by climate change have a direct impact on agricultural production. Moreover, Nigeria often faces local conflicts, banditry, and conflicts between farmers and herders, which force farmers to leave their farms and severely affect agricultural production.

Decoding Nigeria's agricultural policy innovation and looking for opportunities for Chinese enterprises to enter the market

Source: Black Pupil Entertainment New Horizons

Key policies have been introduced to promote the modernization and transformation of agriculture

On 18 May 2022, Nigeria launched the National Agricultural Technology and Innovation Policy (NATIP) as the country's core policy document, NATIP (2022-2027) aims to transform agriculture for food and nutrition security and economic diversification by applying 21st century knowledge, technology and innovation.

NATIP proposes a series of targeted measures, mainly emphasizing technological innovation, digital transformation, climate adaptation, value chain development, market expansion, risk management, and cross-sectoral and government-level cooperation.

Decoding Nigeria's agricultural policy innovation and looking for opportunities for Chinese enterprises to enter the market

Source: NATIP

In addition, Nigeria plans to tilt its budget allocation in favour of agriculture and to increase large-scale investment in agriculture in the spirit of the Maputo Declaration.

Technology transfer, production capacity co-construction, looking for opportunities for Chinese enterprises to enter the market

In addition to internal innovation and transformation, Nigeria has also spared no effort in attracting foreign investment in the agricultural sector.

As a typical representative of a successful agricultural country, China plays an important role in Nigeria's agricultural investment. From the perspective of the two countries' respective agricultural development strategies and global trade patterns, there is extensive room for cooperation between the two countries in agricultural trade, technology exchanges, investment cooperation and capacity building.

In terms of trade relations, China is one of the world's largest markets for agricultural products. Nigeria can increase its agricultural exports to China by improving product standards and quality control, for example, by adopting Good Agricultural Practices (GAP) and establishing traceability systems to reduce the risk of rejection of its agricultural products from the Chinese market, thereby seizing the African Continental Free Trade Agreement and other export opportunities.

In terms of technology introduction and cooperation, Nigeria can learn from or introduce China's modern agricultural technology, machinery and management experience to improve its agricultural production and processing efficiency.

In addition, Chinese enterprises and financial institutions can participate in the construction and modernization of Nigeria's agricultural infrastructure, especially in the areas of warehousing, processing, transportation and market development, to help upgrade Nigeria's agricultural industry chain, increase the added value of agricultural products, and provide more diversified supply chain options for the Chinese market.

At the same time, since Nigeria officially joined the "Belt and Road" family in 2019, local Chinese agricultural enterprises and agricultural talents have ushered in new opportunities for China-Nepal cooperation. It is understood that Nigeria is planning to invite Chinese experts and training institutions to assist in cultivating local agricultural talents, improving farmers' skills and cooperative management level, so as to enhance the competitiveness and sustainable development of Nigeria's agriculture.

Decoding Nigeria's agricultural policy innovation and looking for opportunities for Chinese enterprises to enter the market

Source: Xinhua News Agency

In general, in the process of agricultural modernization and transformation in Nigeria, Chinese enterprises can get more opportunities to enter the market by exporting advanced agricultural technology, investing in the construction of agricultural infrastructure, seizing the opportunity of the "Belt and Road", and expanding cooperation in in-depth investment projects.

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