Agriculture key to Nigeria’s growth plans, says Jonathan

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Agriculture key to Nigeria's growth plans, says Jonathan

...government to invest N242bn in sectorAgriculture and manufacturing will make a greater contribution to Nigeria's economic growth in the coming years as it seeks to reduce its dependence on crude oil, Acting President Goodluck Jonathan said on Wednesday. The country's oil and gas industry provides around 80 percent of government revenues but as the energy sector has rapidly expanded, other areas of the economy have been in decline, leaving the country cripplingly import-dependent.Speaking at an African agriculture summit in Abuja, Jonathan said government planned to help manufacturing and agriculture contribute 13 percent of Nigeria's gross domestic product (GDP) by 2013, up from just 4 percent at the moment. Farming would also play a key role, he told the conference, attended by other African leaders and senior U.N. development officials. "A robust agribusiness and agro-industry holds the key to economic transformation and sustainable development in Africa. Our resources are primarily ours for survival, and we must utilise them efficiently and effectively," Jonathan said. He said diversification was a key to insulating African economies from the effects of falling world prices for the continent's commodities, including crude oil, gold and cocoa. Nigeria's Commercial Agriculture Development Programme (CADP) is part of a wider strategy which has set an ambitious target of placing sub-Saharan Africa's second biggest economy among the 20 largest in the world by 2020.Jonathan said the government had set aside N242 billion ($1.6 million) over the next few years to unlock the potential in agricultural production, processing and infrastructure. The figure represents just a fraction of Nigeria's overall spending plans — including N4.08 trillion in proposed expenditure for this year alone — but Jonathan said he hoped it would trigger greater investment from the private sector."Nigeria is blessed with vast arable land, favourable climate, water bodies and other natural resources that favour agricultural production," Jonathan said. "The country's large population of about 150 million offers a unique investment opportunity and ready market for agricultural products." Modernisation of Nigeria's agricultural sector is key to raising the quality of life of the country's rural population, where the vast majority survive on less than $2 a day and feel the country's oil riches are shared out among a few. In an effort to lower unemployment and reduce poverty, the government plans to raise the average use of local companies in the manufacturing sector to 55 percent from 22 percent by 2013.

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