Abuja: The Federal Government has been urged to prioritise agriculture as a key driver of economic growth, given its potential to greatly boost the nation’s Gross Domestic Product (GDP). Mr Sunday Peter, an Economist and Agro Consultant, emphasized the importance of this sector in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, after the rebasing, Nigeria’s GDP grew by 3.13 per cent on a year-on-year basis in real terms in the first quarter of 2025. The performance of the GDP in Q1 2025 was driven mainly by the service sector, which recorded a growth rate of 4.33 per cent and contributed 57.50 per cent to the aggregate GDP. The agricultural sector saw a modest increase, growing by 0.07 per cent from the minus 1.79 per cent recorded in Q1 2024 and contributing 23.33 per cent to the aggregate GDP. Meanwhile, the industry sector experienced a growth of 3.42 per cent in Q1 2025, up from 2.35 per cent in Q1 2024.
The NBS reported that in terms of GDP share, the services and industry sectors contributed more to the aggregate GDP in Q1 2025 compared to Q1 2024. Mr Peter stated that the rebased GDP figures reflect the reality of Nigeria’s increasingly service-based economy, which lacks a strong agricultural foundation.
Peter emphasized that agriculture is the backbone of any economy, providing essential raw materials for the production industry. However, he noted that the sector has not received adequate attention, hindering Nigeria’s economic growth and development. He asserted that any economy intending to boost its GDP must focus on the agricultural sector, as it is closely linked to the production industry.
To address these issues, Peter recommended that the government focus on boosting agriculture from the grassroots level, engaging traditional rulers and local farmers in the decision-making process. He lamented that funds allocated for the sector are often misappropriated by politicians and government representatives, rather than reaching the intended beneficiaries-the farmers.
Peter suggested that to ensure accountability and efficient resource use, the government should involve local authorities such as local government chairmen, councilors, and community leaders in the implementation of agricultural programs. This approach would enable farmers to access support and resources more easily, leading to increased productivity and economic growth.
The economist also highlighted the potential of Nigeria’s agricultural sector, citing China’s purchase of large quantities of cassava from Nigeria for export as an example. He noted that this demonstrates the potential for agriculture to drive economic growth and create opportunities for Nigerians.
Peter urged the government to prioritize agriculture and provide incentives for farmers, such as subsidizing equipment and offering support services. He also stressed the importance of prioritizing the real sector, ensuring that manufacturing industries utilizing agricultural raw materials become active.
NAN reports that the recent GDP rebasing, covering the period between 2019 and 2023, has 2019 as the new base year due to the relative stability of the domestic economy. The rebased GDP also includes updated methodologies based on best practices and official statistical guidelines.
