The Nigerian government’s proposed 2025 budget allocates ₦826.5 billion to agriculture, marking a pivotal step toward revitalizing the sector, ensuring food security, and creating mass employment, experts say. This allocation reflects a significant increase from ₦362.94 billion in 2024 and ₦228.4 billion in 2023, with capital investments up by 130% year-on-year.
Presenting the “Budget of Restoration: Securing Peace, Rebuilding Prosperity” to the National Assembly in Abuja, President Bola Tinubu underscored agriculture’s role in driving economic recovery. “Food security is non-negotiable. We are taking bold steps to ensure every Nigerian can feed conveniently, and no one goes to bed hungry,” he declared.
With a population exceeding 220 million and growing at an annual rate of 2.1%, Nigeria faces mounting pressure to enhance food production. The government plans to invest heavily in agricultural mechanization, irrigation systems, and value-chain development to reduce food imports and promote self-sufficiency.
Infrastructure and Mechanization
To boost productivity, the 2025 budget includes funding for rehabilitating dams and irrigation systems degraded by siltation and erosion. The government aims to foster public-private partnerships to modernize farming across crop, livestock, and aquaculture sectors. Tanimu Yakubu, Director-General of the Budget Office, highlighted that these initiatives will diversify the economy and spur rural development.
In the third quarter of 2024, agriculture contributed 28.65% to GDP, despite growing only 1.14%. Modernization challenges, particularly limited mechanization, have hindered the sector’s potential. The new budget seeks to address this by attracting foreign direct investment (FDI) and launching capital-intensive agribusiness programs.
Agro-Processing and Employment
Plans to establish commodity exchanges and agro-processing centers aim to reduce import reliance and tackle youth unemployment. The Renewed Hope Fertilizer Support Program (RH-FSP) will enhance fertilizer production and distribution, boost crop yields, and mitigate food-induced inflation.
A ₦127.27 billion intervention fund will support raw material imports, logistics improvements, and local blending plants. The National Agricultural Development Fund (NADF), replacing the discontinued CBN’s Real Sector Support Facility, will provide single-digit interest loans to sustain fertilizer production. The Presidential Fertilizer Initiative (PFI-NPK) is projected to increase output from 400,000–670,000 metric tons to 1.2 million metric tons by 2025.
Long-Term Vision
“This framework demonstrates the government’s commitment to a productive, sustainable agricultural sector,” said Mohammed Adamu, an Abuja-based agribusiness expert. The ambitious plans underscore Nigeria’s resolve to enhance food security, drive economic diversification, and secure a prosperous future for its citizens.
