Nigeria risks losing $3bln annually over non-compliance with EUDR

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Nigeria could lose more than $3 billion annually if it fails to meet the strict requirements of the European Union Deforestation Regulation (EUDR), the Minister of Agriculture and Food Security has warned.

The Minister issued the warning on Thursday in Abuja during the signing of a Memorandum of Understanding (MoU) with the National Space Research and Development Agency (NASRDA) and the launch of the White Paper on Nigeria’s National Strategy for EUDR Compliance.

Speaking at the event, the Minister said the country must rapidly modernise its agricultural monitoring and traceability systems or risk major economic setbacks.

According to him, the White Paper indicates that Nigeria stands to forfeit over $1 billion in direct export earnings and more than $3 billion in total economic value each year if its agricultural commodities fail to meet the EU’s new standards.

The EUDR requires farm products entering the bloc to be traceable to their exact farm boundaries, legally produced, and verifiably deforestation-free.

“We cannot allow this level of exposure to place our farmers or our national economy at a disadvantage,” he said, stressing that the challenge also presents an opportunity to strengthen Nigeria’s agricultural competitiveness globally.

The Minister described the new compliance framework as both strategic and symbolic, noting that it would safeguard farmers, modernise value chains, and position Nigeria strongly in global markets.

A major highlight of the event was the signing of the MoU between the Agriculture Ministry and NASRDA, which establishes a national traceability and environmental monitoring system.

Under the agreement, NASRDA will provide satellite imagery, real-time monitoring and technical leadership, while the Ministry will coordinate farmer engagement, policy integration and nationwide rollout.

The Minister said the new Responsibility Matrix outlines clear duties, timelines and accountability measures, with a Joint Steering Committee set up to oversee transparent implementation.

He warned against fragmented state-level initiatives, saying the EU would not assess states individually.

“The European Union will classify Nigeria as a whole, whether as low risk, medium risk or standard risk. All state efforts, all geomapping, all farmer registrations and all transaction records must flow into a single national database. This is the only system the EU will recognise”, he said.

The Minister emphasized that the move toward compliance must not burden smallholder farmers.

“The tools we build must be simple, affordable and beneficial to them,” he said, adding that the White Paper includes capacity building and simplified onboarding.

He commended the unity among government institutions, private sector players, development partners, and farmer organisations, noting that Nigeria is shifting from planning to implementation.

“We will not build a system that leaves any farmer behind. We will not allow global regulations to undermine Nigerian livelihoods,” he pledged.