By Elvis Eromosele
Nigeria’s agricultural sector is a paradox. A significant portion of the population, over 70 per cent of households are engaged in agriculture activities. So, we can say that agriculture is the lifeblood of millions in Nigeria. Yet the country remains a net food importer of key staples including rice and maize. While the nation’s agricultural sector holds immense promise for economic diversification, job creation, and ensuring food security, it is currently grappling with deep-seated issues that have hindered its progress.
A revolutionary partnership is currently building the groundwork for an agricultural revolution. Launched in June 2024 in Zaria, Kaduna State, the Strengthening Farmers’ and SMEs’ Resilience through Climate Smart Grain Production and Accessing the Structured Markets (StreFaS) initiative by AGRA, Nestlé Nigeria, and TechnoServe is set to redefine Nigeria’s agricultural landscape. This three-year program, expected to run until October 2027, is poised to reshape Nigeria’s agricultural industry by empowering 25,000 small-scale farmers and eight aggregators in Kaduna and Nasarawa States. It is focused on climate-smart production of maize, soybean, rice, and sorghum, StreFaS through the integration of regenerative agriculture for better soil health, reduced greenhouse gas emissions, and economic resilience, especially among youth and women. Nestlé and AGRA have put over $1 million behind the project, as it aligns with Nigeria’s broader economic and environmental goals. It also holds significant implications for Nigeria’s economy.
Today, Nigeria’s agriculture sector contributes almost 25 per cent of the country’s GDP and is responsible for over 35 per cent of employment in the country. Regardless of this fact, it is plagued by issues of climate change, productivity levels, and limited market access for smallholder producers. What we have is irregular rains and extended dry spells that affects the production of crops, undermining food security and increasing the level of rural poverty. Additionally, the lack of formal markets exposes the farmers to exploitation by middlemen, leading to poor-income revenues. The StreFaS program addresses these challenges frontally by advocating for regenerative farm practices and connects farmers with quality markets, i.e., Nestlé’s value chain.
The program also aims to address Nigeria’s unemployment rates, which were 5.3 per cent in Q1 2024 but much higher for young people (more than 20 per cent in rural Nigeria). It would do this by engaging 25,000 smallholder farmers, a number that includes women and youth. Without a question, providing these groups with market access, training, and equipment may boost household incomes and rural economies. In addition, by concentrating on Kaduna and Nasarawa, two of Nigeria’s most important agricultural centres, the initiative is in a position to impact the country’s grain value chains, which are essential for industrial inputs and food security.
Now, StreFaS is designed to boost productivity through climate-resilient practices such as crop rotation, cover cropping, and minimum tillage that will boost the quality of soil and the resistance of yield. A case study featured from pilot phase involved Engineer Lawan Abdul, a soybean farmer, whose yield was boosted 100 per cent once he utilized the practices. Consider if replicated on 25,000 farmers, the increase in productivity could make a dramatic difference to incomes. For context, Nigeria’s smallholder farmers typically earn below $2 per day. Doubling production would bring incomes to or around the international poverty line of $2.15 per day, literally pulling thousands out of poverty.
Besides, linking farmers to Nestle’s supply chain, StreFaS offers market access to high-price markets for climate-resilient crops. This structured market access prevents dependence on unstable local markets and speculation middlemen. Indeed, the improved revenues will most probably stimulate local consumption in the local economy, creating demand for products and services within rural economies and increasing Nigeria’s GDP growth.
Secondly, it would create jobs and boost youth empowerment. With youths (15 – 35-year-olds) making up over 60 per cent of the 230 million population, unemployment and underemployment remain significant challenges. StreFaS’ emphasis on youth involvement, through capacity building in new farming techniques and agribusiness management skills, aligns with Nigeria’s National Youth Policy and its desire to tap into the demographic dividend. Through supplying youthful farmers with implements and access to markets, the initiative can realize livelihoods that are sustainable and reduce urban migration and the accompanying social tensions in urban centers such as Lagos and Abuja.
Also, the program’s support of eight aggregators, which are SMEs that source and process produce, will also generate indirect jobs in processing, logistics, and marketing. SMEs are the lifeblood of the Nigerian economy as they have generated over 50 per cent of GDP and have employed millions of individuals. Increasing their capacity to function within organized markets can render them more profitable and scalable, which will result in a thriving agribusiness ecosystem.
Additionally, StreFaS will improve food security and reduce import. Currently, Nigeria imports over $5 billion worth of food annually. The imports include grains like maize and rice, products that can be locally produced. The focus by the StreFaS program to improve production of maize, soybean, rice, and sorghum is likely to slash this bill significantly. Maize, for instance, is a food staple for millions of people and a key input for poultry and food processing industries. Through increasing domestic supply, the project could stabilize food prices, which have varied with inflation (32.7 per cent as of September 2024). Reducing food prices would naturally ease the cost-of-living squeeze for both urban and rural consumers.
The program’s emphasis on climate resilience ensures that production is consistent regardless of weather shocks. This would greatly reduce Nigeria’s vulnerability to external shocks in the value chain globally. This stability would enhance Nigeria’s food self-sufficiency, one of the economic pillars of its Economic Sustainability Plan.
Moreover, StreFaS holds promise of environmental sustainability and long-term economic gains. Regenerative agriculture, the cornerstone of StreFaS, guarantees practices that restore soil health, sequester carbon, and enhance biodiversity. Such practices align with Nigeria’s commitment under the Paris Agreement to reduce greenhouse gas emissions. By helping to reduce emission in agriculture, which accounts for about 30 per cent of Nigeria’s overall emissions, StreFaS is paving the way for the country’s transition to a green economy.
Healthier soils, subsequently, lead to sustained productivity, thus effectively reducing the requirements for costly chemical fertilizers. It would be recalled that fertilizer prices increased more than 40 per cent in 2024 in the wake of world price shocks. Input savings by farmers can be reinvested on the farms or in local economies, with multiplying economic effects. Moreover, Nestlé’s goal of sourcing 50 per cent of its key ingredients from regenerative agriculture by 2030 is a testament to continued demand for climate-resilient crops, supplying Nigerian farmers with secure market access.
Evidently, the StreFaS initiative has the potential to drive system change in Nigeria’s agriculture sector, with ripple effects across the economy. StreFaS aligns with AGRA’s 3.0 Country Strategy, Nestlé’s 2030 Climate Resilience Sourcing Objectives, and TechnoServe’s proven expertise in creating market-driven solutions for rural prosperity. By connecting smallholder farmers to better tools, markets, and capital, StreFaS will scale regeneration that is profitable and empowering. As it rolls out, the program will increase collaboration with government, private sector, and civil society partners in order to sustain scalable change throughout Nigeria’s grain value chain.
Honourable Murtala Muhammad Dabo, Commissioner, Ministry of Agriculture, Kaduna State, speaking at the launch event, stated “This launch marks a significant milestone in our journey towards a more sustainable agricultural future. Let us continue to work together to empower farmers, improve food security, and build a climate-resilient agricultural sector.”
The initiative also enhances Nigeria’s role in global value chains. With multinational firms such as Nestlé emphasizing sustainable sourcing, Nigerian farmers incorporated into such chains get exposure to global markets. This has the potential to draw more foreign investment into Nigeria’s agribusiness industry, which got an estimated $15.80 million in FDI in the first quarter of 2024, but has enormous potential for expansion considering the country’s huge cultivatable land (37 per cent of total land area).
Challenges however remain. Scaling regenerative agriculture entails substantial upfront investment in inputs and training. The $1 million investment, while significant, may have to be augmented in order to successfully scale to all 25,000 farmers. Nigeria’s infrastructural deficits, such as poor rural roads and epileptic electricity, could also compromise market access and supply chain efficiency. These will have to be overcome through greater public-private cooperation, to which StreFaS’s multi-stakeholder approach is well placed to facilitate.
“We are proud to co-lead this initiative that puts farmers first, not just by introducing new practices, but by rebuilding the very ecosystems that sustain farming,” said Dr. Rufus Idris, AGRA’s Country Director for Nigeria.
To all intent and purpose, the StreFaS initiative is a bold step towards climate-resilient and inclusive agriculture in Nigeria. The placement of farmers into organized markets, such as Nestlé’s value chain, by the program ensures higher incomes and reduced import dependence, which contributes to Nigeria’s GDP as well as food security.
Speaking about Nestlé’s commitment, Mr. Wassim Elhusseini, CEO, Nestlé Nigeria stated, “At Nestlé, we believe that good food starts with high-quality ingredients and the well-being of the people who produce them. Our partnership in this initiative underscores our commitment to sustainable sourcing and decarbonizing our value chain.”
As Mrs. Adesuwa Akinboro of TechnoServe Nigeria aptly stated, StreFaS is about “restoring dignity to farming” and creating an inclusive future. The success of the initiative would serve as a blueprint for transforming Nigeria’s agricultural sector, unlocking its potential to drive economic growth, reduce poverty, and build resilience against climate change. As implementation progresses, sustained collaboration among government, private sector, and civil society will be crucial to realizing these ambitious goals and cementing Nigeria’s position as a leader in climate-smart agriculture in Africa.
