Agriculture sector expand its contribution to the national economy
Sterling Bank PLC emphasizes why the agric sector gets less than five percent of total lending to the economy. Agribusiness as a sector does quite a fair bit in employment but can do so much more.
FREMONT CA: In the third quarter of 2021, the agriculture sector contributed about 29.94 percent to Nigeria’s GDP. This significant contribution highlights the incredible potential of the sector to deliver high-valued outcomes effectively. Obiyanke's aim to maximize this potency in order to increase economic contribution can be accomplished by encouraging more local production of agro-commodities to meet local demand, with the excess exported as a trade commodity once capacity is carried through.
However, this optimum capacity is contingent on creating a favorable environment for existing and prospective agribusinesses to thrive.This maximized potential, however, is largely dependent on creating a favorable environment for current and prospective agribusinesses to thrive. This can be accomplished through incentives such as tax holidays for agribusiness start-ups and financing smallholder farmers at sub-commercial rates with intervention funds to drive scale production, and so forth. Most importantly, all of these can be attained with increased private sector participation in agribusiness.
The crucial need to create an enabling environment for the private sector to play its role effectively can be considered in increasing scalability and making the agriculture sector more appealing. Markets that have built their economies in and around agribusiness industry, the rise in the local production has been observed.
Private sector participation opens up the market which becomes more appealing to foreign investors,releasing more resources given the exchange rate. All of this, however, can be accelerated by making low-cost funding available to encourage participation and scale among smallholder farmers and agro-focused SMEs.
Eventually, using data and technology to improve the efficiency and quality of their practices is likely to enhance operational efficiency,reducing waste and allowing industry participants to optimize for maximum production. Incorporating these solutions will increase production while also creating value, making the industry more appealing.
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