final project for World Bank Group open course on edx. This project aim to make every one interested aware of the huge benefit and potential of using agriculture as a means of impact investment. and unlocking opportunities in a developing economy.

1. U N L O C K I N G T H E F U L L P O T E N T I A L O F
A G R I C U LT U R A L S E C T O R F O R E C O N O M I C
D E V E L O P M E N T ( C A S E S T U D Y ; N I G E R I A )
F I N A L P R O J E C T F O R U N L O C K I N G I N V E S T M E N T A N D
F I N A N C E I N E M W B G O P E N C O U R S E O N E D X J U N E
2 0 1 9 : D I R E C T I N V E S TO R S

2. OKEKE STELLA OBIANUJU COURSE WORK
• Before the advent of oil in the 1970’s, agriculture was the major source of revenue in
the economy. Consequently the production of both cash and staple food crops such as
cassava, rubber, palm produce, cotton and groundnuts, which were major foreign
earners before oil, lost their export appeal since oil money came into economic scene.
This had an adverse effect on all aspect of the economy and made Nigeria a mono-
economy country.
• Many people generally define agriculture simply as the cultivation of the soil, but in
reality Agriculture covers a very wide range, it includes all aspects of crop production,
livestock farming, fishery, forestry etc. There are various problems in developing
economies like Nigeria, which the practice of agriculture in a wide scale and in the long
run will address. These include; unemployment and slow economic growth; hunger and
malnutrition; poverty; poor utilization of resource; health and well-being; stagnant
industrialization; poor infrastructure and innovation; environmental wastage and
energy; Balance of payments disequilibrium; Exchange rate instability; inequality in
resource allocation; low production; etc.

3. CONT.• The UN sustainable development goals, which is officially known as TRANSFORMING. OUR WORLD: THE 2030
AGENDA FOR SUSTAINABLE DEVELOPMENT is a set of 17 “global goals” with 169 targets between them.
More than nine of the sustainable development goals directly or indirectly have a connection with farming,
which provides a special multidimensional status to agriculture. More than any other sector, agriculture is the
common thread which holds most of the SDGs together.
• In other for agriculture to meet the sustainable development goals and address the problems of LDCs like
Nigeria, the process of agriculture has to change from its traditional or old ways. This simply means
agriculture has to be MODERNISED. The notion of modernisation is not simple, it is a relative term which
means transforming old to new. This is closely related to the change which is inevitable and unavoidable in a
developing economy.
• In order words, for modernisation of agriculture to work, the infrastructure of agriculturists should be built up
through improving their knowledge, providing technical training and agro-economic services to cultivators.
This will enable them understand the necessity for modernisation. Therefore the modernisation of agriculture
lies in the increase of capital investment both in the form of materials as well as skills.
• Agriculture can serve as the backbone of any economy. The development of agriculture is necessary to meet
the increased level of poverty and hunger in Nigeria, because of the persistent increase in population. The
sector has a great responsibility of providing food, nutrition and medicine, not only for rural population but
also for urban population. Adequate production of food grains, nutrition and medicine are necessary for
improving the productivity of labour, which can only be improved when human capital is endowed with health
and vigour. This in turn increase production, welfare, happiness and thus economic development of the
country. The development of agriculture requires good road, market yards, storage facilities, storage
transportation railways, postal services etc.

4. CONT.• The low standard of the population is as a result of serious unemployment in the nation. Crop
production alone cannot give adequate employment. The development of agriculture will lead to an
increase in the role of management. The typical problems in production, finance, marketing and
processing demand high degree of skill both for entrepreneur and the workers. This makes it
necessary for both skilled and unskilled labour to be hired in order to increase production. The sector
also meet the increasing demand of raw material required by the industrial sector. Agriculture and
industry are the two wheels of any economy. The full development of the agriculture sector depends
on industrial development, since the industry is responsible for the supply of machines, tools,
implements and other necessary and latest inputs. It leads to proper utilization of resources, which is
indispensable to increase the level of production. It ensures an equilibrium in balance of payments
because of the countries self-sufficiency. This will reduce the uncertainty generally associated with
agriculture import and their adverse effect on internal availability, price and the economy as a whole.
Because of the reduction in agricultural imports and the self-sufficiency in production, the sector can
make a positive contribution to foreign exchange earnings. Improving the efficiency of farmland can
help minimize the loss of natural habitats and forests. The sector makes it possible to harvest wind
power, solar energy and biomass from plants and organic wastes. Which generate renewable energy,
to pump water, generate electricity, etc. The success of agricultural development leads to the growth
of the country’s economy and a reduction in poverty.

5. CONT.
• In order for agriculture to be made into a successful business model for investment and financing
oppourtunities, it has to be mechanized. Mechanized farming and agricultural process (livestock and
fishery) is the process of developing agricultural machines and technology and substituting this
machine power for human and animal power in agricultural production practices, greatly increasing
workers’ productivity, encourage large scale production, and improve the quality of farm produce. This
involve the use of tractors, trucks, combine harvesters, crop dusters, drones, helicopters and other
vehicles. Furthermore if handled properly, it will encourage youth participation in the field of
agriculture and rural development, encourage multiple cropping, reduces drudgery, aid farmers in
improving marketing processes such as packaging, grading and standardizing commodities and
reduce losses in marketing channels, warehousing and storage.
• Irrigation should be built to control the amount of water supplied to plant at regular interval, in other
to promote all year agriculture in the country. River basins should be fully utilized in order to promote
agriculture in the country. Loans should be made available to farmers and youth going into
agricultural business at low interest rate. Agro-allied industry should be encouraged in order to avoid
wastage of farm produce for commercial purpose. Commercial ranching should be practiced in order
to encourage agro-pastoral development in the country.
• The Billions to Trillions analogy can be used in the Nigeria’s agricultural sector alongside the
support/assistance/guidance from IMF and WBG through IDA to make reform changes, policy
changes that will help attract private sector into investing in agriculture.

6. CONT.
• 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.
• Infrastructural and innovative projects need to be generated in order to link the farmers
to the market. Also a large Investment in power sector is necessary for agricultural
sector to boost productivity, efficiency, management and preservation of agriculture
produce. Also government and its agencies should also invest in research and
development to boost agricultural yield. The proper and adequate management will
enable the government collect tax in this sector adequately through tax reforms to
generate DRM.
• In conclusion, for agriculture to be successful it be should viewed as a business
enterprise and not a development tool. This way agriculture will gain a prominent
position in the country.