Stakeholders Seek Improved Funding for Agriculture to Boost Food Security

News in Brief:

— Agricultural stakeholders have called for increased and timely public funding ahead of Nigeria’s 2027 agrifood systems budget.

— They estimate that full implementation of approved capital budgets could generate about 3.5 million direct jobs in the agricultural sector.

Nigeria’s agricultural stakeholders have called for increased funding, timely budget releases and stronger accountability across the agrifood system. They warn that inadequate financing and weak implementation are limiting the sector’s contribution to food security, employment and economic growth.

The call was made at the end of a three-day National Stakeholders Consultative Meeting on the 2027 AgriFood Systems Budget held in Ikeja, Lagos.

ActionAid Nigeria organised the meeting in collaboration with the GIZ Global Programme Sustainable Agricultural Systems and Policies, the Federal Ministry of Budget and Economic Planning, the Federal Ministry of Agriculture and Food Security, and the ECOWAS Commission’s Department of Agriculture and Rural Development.

Participants included representatives of government ministries and agencies, research institutions, academia, the National Assembly, civil society organisations, development partners, farmers’ groups, private-sector organisations and the media.

Agriculture Spending Remains Below Target

Stakeholders voiced that Nigeria’s public spending on agriculture remains below the country’s commitments under the Comprehensive Africa Agriculture Development Programme (CAADP).

According to the meeting’s communiqué, aggregate public expenditure on agriculture across the Federal Government, the 36 states and the Federal Capital Territory was estimated at 4.58% in 2026, compared to the 10% target.

The gap is further compounded by weak implementation of approved budgets.

Stakeholders revealed that actual capital budget implementation at the state level averaged about 50% between 2023 and 2025. This means that roughly half of approved capital allocations were spent.

In some cases, implementation was considerably lower.

The participants argued that the issue is therefore not simply how much government allocates to agriculture but how much of the approved funding actually reaches programmes and projects.

Delayed Releases Undermine Agricultural Planning

Timely funding was identified as another major constraint. Smallholder activities are seasonal, and delays in disbursing funds can lead to missed production windows.

Stakeholders stated that late releases can result in rushed procurement, reduced value for money and lower-impact implementation.

They called for a predictable release calendar under which first-tranche capital funds would be released early enough to allow procurement and implementation within relevant planting, production and dry-season cycles.

They also recommended quarterly disclosure of budget release performance and a review of cash planning, approvals, procurement and payment processes that delay access to appropriated funds.

Full Budget Implementation Could Create 3.5 Million Jobs

The stakeholders also highlighted the potential economic returns from better budget execution.

According to evidence presented at the meeting, full implementation of approved Federal and State agriculture and livestock capital budgets could generate an estimated 3.5 million direct quality jobs.

Of that figure, about 2.1 million jobs could come from Federal-level investments, while another 1.4 million could be generated across the states and the FCT.

Participants said stronger implementation could also increase internally generated revenue (IGR) and contribute to economic diversification.

The figures underline the potential cost of leaving approved agricultural projects underfunded or partially implemented.

Stakeholders Propose a Shadow Budget for 2027

As part of preparations for the 2027 budget cycle, participants developed a working Agrifood Systems Shadow Capital Budget valued at ₦3.296 trillion.

The proposed budget was structured around six strategic areas aligned with CAADP priorities:

sustainable food production and trade;

food and nutrition security;

investment financing;

inclusivity and livelihoods;

resilience to shocks; and

governance and accountability.

The stakeholders urged the Federal, State and Local Governments to progressively increase agrifood expenditure towards the CAADP and Kampala Declaration benchmark of at least 10% of public expenditure.

They also called for agricultural allocations to be protected from avoidable in-year reductions.

Funding Should Cover Entire Food System

Participants argued that agricultural spending should extend beyond primary production.

They called for investment across crops, livestock, fisheries, nutrition, markets, climate resilience and enabling services.

They also urged the Federal Ministry of Budget and Economic Planning, Federal Ministry of Agriculture and Food Security, relevant agrifood MDAs and the National Assembly to consider the harmonised Shadow Budget during the 2027 budget process.

The six priority areas and proposed ₦10.5 trillion envelope identified in the stakeholders’ recommendations were also proposed as a basis for discussions on a realistic pathway towards the 10 per cent Kampala benchmark.

Budget Accountability Needs Stronger Oversight

Stakeholders said agricultural budget performance is often measured by allocations and releases rather than actual results.

They called for greater tracking of how public spending affects agricultural productivity, farmer incomes, employment, food prices, nutrition, climate resilience and poverty reduction.

They recommended that the National and State Houses of Assembly expand budget oversight beyond appropriation to include releases, utilisation, outputs and outcomes.

They also called for sector budget hearings, implementation scorecards and periodic tracking reports throughout the fiscal year.

A unified data and monitoring system was proposed to track beneficiaries, agrifood expenditure and outcomes, including indicators disaggregated by gender, age and disability.

Farmers and Agribusinesses Need More Financing

Beyond government budgets, stakeholders called for increased development finance to support agricultural transformation.

They recommended greater use of blended finance, credit guarantees, agricultural insurance, cooperative finance, concessional financing and non-interest financing.

Partnerships with domestic and international development institutions were also encouraged.

The stakeholders said Nigeria needed balanced investment in extension services, mechanisation, irrigation, climate-smart agriculture, agroecology, research, storage, processing, markets and agricultural data systems.

These investments, they argued, would help address constraints that limit productivity and prevent farmers and agribusinesses from fully benefiting from available market opportunities.

Insecurity, Climate Change Remain Threats to Food Production

Insecurity was identified as one of the major threats to Nigeria’s agrifood system.

Participants said attacks on rural communities and farming areas were contributing to declining production, higher food prices and increased rural poverty.

They called for stronger action to improve the security of farming communities and enable farmers to safely access their land.

Farmers-herders conflicts were also discussed, with stakeholders recommending pasture development projects that could provide more secure and sustainable sources of livestock feed and reduce conflicts associated with livestock movement.

Stakeholders also warned that climate change is intensifying the pressures facing farmers.

They cited floods, prolonged droughts, rising temperatures, land degradation and changing rainfall patterns as risks to agricultural productivity.

They recommended increased investment in early warning systems, climate information services and agricultural insurance, particularly for smallholder farmers.

Other proposed interventions included solar-powered irrigation, water harvesting, climate-resilient seeds and livestock practices, agroforestry, soil-health programmes, agroecology and integrated pest management.

Pesticide Misuse Endangers Safety, Exports

Concerns were also raised over the misuse of pesticides, including the continued use of highly hazardous and banned chemicals.

Participants warned that contamination of rivers and aquatic ecosystems could have implications for both public health and agricultural production.

They also linked excessive chemical residues to the rejection of Nigerian agricultural exports that fail to meet international standards.

The stakeholders raised similar concerns over hazardous fish preservation practices, including the alleged use of formalin.

The concerns reinforce the need for stronger extension services, regulation, laboratory testing and monitoring across agricultural value chains.

Private Sector Involvement Crucial

Stakeholders said government funding alone would not be sufficient to transform Nigeria’s agrifood system.

They called for an enabling environment that would encourage investment by smallholders, micro, small and medium-sized enterprises and larger agribusinesses.

This would require reliable infrastructure, predictable policies, transparent investment rules, access to finance and functioning market systems.

Public-private partnerships were recommended for areas including processing, logistics, irrigation, mechanisation, renewable energy and market infrastructure.

The stakeholders also called for more inclusive agricultural budgeting. They proposed that 35% of intervention beneficiaries should be women, youth and persons with disabilities.

They also recommended dedicated support for youth agripreneurs and meaningful representation of these groups in programme implementation, monitoring and decision-making.

The proposal reflects the view that agricultural transformation should generate opportunities across different groups rather than concentrate benefits among established operators.

Better Data Needed to Track Agricultural Spending

A unified data, monitoring and accountability framework was another key recommendation.

Stakeholders proposed systems covering beneficiary registries, agrifood expenditure, gender, age and disability-disaggregated indicators, public expenditure dashboards and citizen-facing annual performance reports.

They also called for greater involvement of civil society organisations, farmers’ groups and the media in budget dialogue, implementation monitoring, Joint Sector Reviews and Biennial Review processes.

As Nigeria prepares its 2027 budget, the stakeholders’ recommendations point to a broader issue in agricultural financing.

Increasing allocations without improving the release and utilisation of funds may not deliver significant improvements in food production or farmer incomes.

The challenge is to ensure that public spending reaches productive interventions at the right time and that the outcomes can be measured.