This proposal suggests integrating the IDA Private Sector Window to unlock financial opportunities in Nigeria's agricultural sector. Nigeria has vast underutilized agricultural land but faces problems like technical/resource deficiencies, lack of organization, and policy instability. Agriculture currently contributes little to GDP despite potential. Integrating IDA PSW could attract investment to tackle obstacles through reforms, infrastructure, incentives and research/development. This would boost agricultural productivity and profitability, generating income, employment and exports to benefit the economy.

1. Submitted by:Akeem Owoade
Final Project forWBG’s MOOC
Finance For Development: Unlocking
Investment Opportunities
PROPOSAL: A Financing Solution That Will Unlock
Financial Opportunities in Nigeria’s Agricultural Sector
Integrating the IDA PSW

2. Executive Summary
This Project tends to propose solutions to unlock financial
opportunities in the agriculture sector of Nigeria.
With Nigeria’s vast land mass and arable land for agriculture,
integrating the IDA PSW in this sector through proper,
government reforms, technology, right policy, infrastructural
development and determination, it is possible to unlock the
opportunities in the sector which can help to mobilize funds for
national development and wealth creation for Nigerians.
I will try to explain these proposed solutions in the next few
slides.

3. Overview
Nigeria with a population of 188million (as at 2015) and land
mass of 923,768 km² out of which almost 60% of the land is
still available for agriculture, only 30% of the population are
into agriculture most of which are subsistence farmers
according to the Nigerian National Bureau of Statistics report
in 2015.
Agriculture is not attractive to the populace because most of
GDP is from Oil and Gas, but now prices are down and the
economy is in turmoil, it’s a great opportunity to unlock the
untapped financial opportunities in this area.

4. Questions this Project will try to Answer
 What is the problem in Nigeria’s Agriculture that we are
trying to solve?
 What are the reasons that the government, official aid
provider or private sector would want to participate
Agriculture in Nigeria?
 What are the main obstacles currently standing in the way of
unlocking financial opportunities and how can they be
tackled?

5. Problems Facing Agriculture
 Technical Factors: Such technical factors include the high
incidence of pests and diseases, inadequate infrastructural
facilities, dependence on unimproved inputs, and
rudimentary technology
 The Factor of Resource: One of the important problems
of agricultural labour supply arises from the increasing
migration of able-bodied youths from rural to urban areas.
The consequence of the massive migration of youths is
seasonal labour shortage, especially at the peak periods of
labour demand such as during land preparation, planting,
weeding, and harvesting.There is also the problem of low
agricultural labour productivity.

6. Problems Facing Agriculture
 Factor of Organization: Agricultural production is
predominantly in the hands of a multitude of small-scale,
unorganized farmers scattered across the country. Lack of
organization, coupled with the dispersed nature of farm
settlements, hinders the participation of farmers in
agricultural and rural development.This hinders the supply
of extension services, farm credit, and other vital inputs to
farmers.
 Policy Instability
 Inconsistent policies

7. Problems Facing Agriculture
 Poor Implementation of policies
 Weak institutional framework for policy coordination.
 Poor Level of Collaboration between Research Institutions
and Industry
 Lack of adequate grants and incentive from government and
private sector
 Insufficient electricity supply to boost agro food processing
and preservation of agricultural produce

8. Agriculture Contribution to Nigeria’s
GDP by Economic Activity %
Courtesy:
Nigeria Data
Portal

9. Agriculture Contribution to Nigeria’s
GDP
Courtesy: Nigeria Data Portal

10. Crop Production in Nigeria
(‘000hectares)
Courtesy:
Nigeria Data
Portal

11. Reasons why government, aid provider or private
sector should participate in agriculture
From the data shown in the previous slides, we can see that
agriculture is under contributing to Nigeria’s GDP. So there are
opportunities for investment for IDA PSW and they reason why
government, official aid providers or private sector should
participate include the following:
 To alleviate poverty which is a critical SDG goal by 2030,
agriculture will provide food security.
 To make financial gain, the reason private sector will be
interested in investing in agriculture is basically for financial
gain either on the long or short term, this provides the
opportunity for considerable financial return

12. Reasons why government, aid provider or private
sector should participate in agriculture
 Generate employment for more people which will lead to
economic stability .
 It will ensure people eat healthier and preserve their
wellbeing.
 Create exportation potentials to boost the GDP and grow the
economy.

13. Tackling Obstacles to unlock financial
Opportunities in Nigeria’s Agric Sector
Using the Billions toTrillions analogy, government will seek
support/assistance/guidance from IMF andWBG through IDA
to make reform changes, policy changes that will help attract
private sector into investing in agriculture.The following will
help tackle the problem to unlock the opportunities.
 MDBs and IMF to help provide policy guidance, and
development finance and financial support to the
government.
When the reforms and policies changes have been carried out
by government, the private sector will be motivated or
attracted to invest heavily in all arms of agricultural process in
Nigeria.

14. Tackling Obstacles to unlock financial
Opportunities in Nigeria’s Agric Sector
Some of the investment opportunity for PSW include the
following
 Infrastructural projects to link the farmers to the market
 Investment in power generation for agriculture sector to
boost and preserve agriculture produce
 Official aid providers will also be interested in investments in
research and development to boost agricultural yield
 Government can also provide adequate loans and incentives
to help farmers.
 Government will also be able to collect tax adequately
through tax reforms to generate DRM

15. Rerefences
 Billions toTrillions
https://d37djvu3ytnwxt.cloudfront.net/assets/courseware
/v1/77723739fc4becaf7c436dacc736ddf8/asset-
v1:WBGx+F4D01x+1T2017+type@asset+block/B_T_Fin
ancing_for_Development_1-5_13-17.pdf
 Potentials of the Agro Industry towards Achieving
Food Security in Nigeria and Other Sub-Saharan
African Countries O.A. Olaoye
 Nigeria Data Portal

16. Acronyms
 PSW – Private SectorWindow
 IDA – International DevelopmentAssociation
 DRM – Domestic Resource Mobilization
 WBG –World Bank Group
 IMF – International Monetary Fund
 MOOC – Massive Open Online Course
 GDP – Gross Domestic Product
 MDB – Multilateral Development Banks
 SDG – Sustainable Development Goals