Policy Imperatives for Strengthening Value Addition in Nigeria’s Agricultural Sector

Abstract

This paper examines the potential for building on the existing policy framework to strengthen value addition in Nigeria’s agricultural  sector. In doing so, we highlight its positive impact on food security, export revenue, import substitution-driven job creation, and  economic growth. Drawing on Agricultural Structural Transformation theory, we identify value addition as a key mechanism for  transitioning from primary to secondary and tertiary production. The paper concludes with four actionable policy recommendations for  unlocking Nigeria’s agricultural potential and achieving a more stable and resilient economy. Our evidence-based recommendations,  which include policy imperatives such as Public-Private Partnerships, as well as government support for technology adoption, tax and  investment incentives to promote value-addition in economic clusters with crops where Nigeria has a comparative advantage and proactively deepening market linkages, are informed by a review of case study evidence from Thailand's rice production, the Netherlands  dairy and egg sectors, China's Special Economic Zones (SEZs), Uganda’s Cultivate Africa Future Fund’s Agriculture PPP  Project (CultiAf-Ag-PPP), and Kenyan tea industry.