When most people hear the word agriculture, they imagine farmers working in the fields planting seeds, harvesting crops, or tending to livestock. While this image is accurate, it captures only one part of a much bigger picture. To truly understand the role of agriculture in Nigeria’s economy and future, we need to distinguish between agriculture and agribusiness.
“Agribusiness is not just farming; it is farming, plus everything else that brings food from farm to fork.” – John H. Davis (who first coined the term agribusiness).
Agriculture: The Foundation of Food Production
Agriculture is the science and practice of producing food and raw materials. It focuses mainly on:
- Crop production (maize, cassava, rice, tomatoes, etc.)
- Animal husbandry (poultry, cattle, goats, fish farming)
- Soil and water management
- Sustainable use of land and natural resources
In Nigeria, agriculture employs over 35% of the labour force and contributes about 25% to the GDP (National Bureau of Statistics, 2023). Without agriculture, there is no food, no raw materials for industries, and no foundation for rural livelihoods.
But here’s the catch: agriculture alone is not enough to create wealth.
Agribusiness: Beyond Farming
Agribusiness is a broader term that includes agriculture but stretches far beyond the farm. It is the business side of agriculture, the systems, services, and industries that connect farm products to consumers and markets.
Agribusiness includes:
- Production – the farming itself (crops and livestock).
- Processing – turning raw produce into higher-value products (cassava → flour, tomatoes → paste, milk → yoghurt).
- Marketing & Trade – selling to local and international markets.
- Finance & Investment – banks, microfinance, and venture capital that support farmers and agritech startups.
- Logistics & Distribution – storage, transport, and cold-chain solutions.
- Input Supply – seeds, fertilizers, machinery, and agrochemicals.
- Export & Global Trade – connecting Nigerian produce like sesame, cocoa, and cashew to foreign markets.
Think of it this way: agriculture grows food, but agribusiness grows wealth.
Why the Difference Matters
Understanding the difference is not just theory it shapes how Nigeria can fight food insecurity and grow its economy.
- Agriculture alone keeps farmers at the mercy of weather, pests, and fluctuating prices.
- Agribusiness creates multiple streams of income, jobs, and stability by adding value, diversifying markets, and attracting investment.
For example:
- A tomato farmer in Kano may sell fresh tomatoes for quick cash, but a tomato processor turns those same tomatoes into paste with 10x longer shelf life and higher profit margins.
- A poultry farmer sells eggs at the farm gate, but an agribusiness entrepreneur packages, brands, and exports dried egg powder.
Nigeria’s Urgent Need for Agribusiness
Nigeria loses up to 40% of its food post-harvest due to poor storage and processing (FAO, 2022). Shifting from agriculture to agribusiness through processing plants, cold storage, and organized value chains is one of the fastest ways to reduce waste, create jobs, and strengthen food security.
Countries like Brazil and the Netherlands show how agribusiness transforms economies. They export not just raw produce but processed, branded, and high-value food products. Nigeria has the same potential
Agriculture and agribusiness are not opposites, they are connected. Agriculture lays the foundation, but agribusiness builds the house. Without agribusiness, Nigeria will keep producing but not fully prospering.
So, here’s the big question: Do you see yourself as just a farmer, or as an agribusiness owner building wealth from the entire value chain?
At AgropreneurNG, we believe the future belongs to those who combine farming with business, technology, and innovation. Together, we grow.
References
- FAO (2022). Reducing Food Loss and Waste in Africa. Food and Agriculture Organization.
- National Bureau of Statistics (2023). Labour Force & GDP Contribution Reports.
- World Bank (2021). Nigeria Agriculture and Agribusiness Report.
