ActionAid Nigeria has projected that Nigeria’s 36 states and the Federal Capital Territory (FCT) could collectively generate about ₦5.4 trillion from agriculture if each state invests ₦15 billion in strategic areas of the sector.

This was revealed on Tuesday in Kaduna by Azubike Nwokoye, Food Systems Specialist at ActionAid Nigeria, during the National Council on Agriculture and Food Security.

Nwokoye presented a report titled “Political Economy Analysis on Agriculture Budget Investments: Resultant Effects on States’ Internally Generated Revenue (IGR) and Employment Generation for 2025.”

According to the report, ActionAid conducted a comprehensive analysis across all states to assess how agricultural investments could impact state revenues and employment.

The findings show that even modest but well-targeted investments in key agricultural value chains could yield massive financial and socio-economic returns.

“We carried out this analysis to demonstrate to politicians, policymakers, and governors that putting money in agriculture is an investment, not just expenditure.

“For instance, Gombe State’s projected IGR for 2025 is ₦25.66 billion. But if it invests ₦15 billion in key agricultural areas, it could generate an additional ₦112.98 billion—more than four times its baseline projection,” Nwokoye stated.

Similarly, he said Osun State, which currently projects an IGR of ₦119.87 billion, could raise an extra ₦114.08 billion with the same level of investment.

Nwokoye emphasized that most states currently allocate very little to agriculture, particularly to the capital components of their budgets. This, he said, explains the slow progress seen in food production, processing, and value chain development across the country.

“It’s clear that for states to make meaningful progress, they must allocate and spend in critical areas of agriculture. This includes access to credit, extension services, support for women and youth in agriculture, labour-saving technologies, inputs, post-harvest loss reduction, and market access,” he said.

He listed additional priority investment areas to include processing and storage facilities, rural transportation, irrigation, climate-resilient agriculture, nutrition, research and development, and effective monitoring and evaluation.

Nwokoye also referenced the Kampala Declaration, which urges governments to spend, not just allocate, at least 10 per cent of their annual budgets on agriculture.

“Public expenditure in agriculture should focus on areas that can reduce poverty, cut unemployment, and stimulate inclusive economic growth,” he noted.

He added that while increased funding in agriculture could directly boost states’ IGR, it must interact with other factors—such as market infrastructure, access to finance, and institutional support—to deliver sustainable employment gains.

ActionAid Nigeria’s analysis concluded that sustained and well-coordinated agricultural investments could significantly improve food security, increase employment opportunities, and reduce poverty nationwide.

“If we want to eradicate poverty and grow state revenues, then agriculture is the smartest investment any state can make,” Nwokoye added.

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