Tinubu’s N826.5bn agriculture allocation increase fails to meet sustainability demands

Onome Amuge

President Bola Tinubu recently proposed a budget of N47.965 trillion for 2025, tagged, “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”

The proposed budget earmarks N826.5 billion for the agricultural sector, representing over a 100 per cent increase from the N362.94 billion allocated in 2024 and the N228.4 billion allocated in 2023.

The increased allocation, according to the president, is geared towards boosting food security and economic diversification in Nigeria, underscoring the government’s renewed focus on the agricultural sector as a key driver of economic growth and stability.

“Food security is non-negotiable. In this regard, we are taking bold steps to ensure that every Nigerian can feed conveniently, and none of our citizens will have to go to bed hungry,” Tinubu stated in his presentation to the National Assembly.

However, concerns have been raised regarding the current administration’s ability to deliver on its commitments to the agricultural sector, with analysts and stakeholders voicing doubts about the government’s capacity to effectively deploy the allocated N826.5 billion.

While the proposed allocation to the agricultural sector is a promising development, the lingering scepticism among experts suggests that more must be done to address underlying issues and build confidence in the government’s ability to achieve its stated goals in this critical sector.

An analysis of the proposed budget allocation indicated that once again, the agricultural sector has found itself relegated to a footnote in the national budget, as the administration’s proposed allocation of 1.73 per cent of the 2025 budget reflects the government’s struggle to give the sector the attention it deserves.

Despite food security being a central component of President Tinubu’s election promises, even the infamous ‘agbado’ gaffe during the campaign period has not resulted in a significant allocation to the sector.

Moreso, the proposed 2025 budget allocation to agriculture has also called into question the Nigerian government’s commitment to the agricultural sector and food security. Critics argue that the budget falls short of the country’s commitment to the Maputo Declaration of 2003, where African nations pledged to allocate at least 10 per cent of their annual budgets to agriculture and rural development.

For 22 consecutive years since the declaration, Nigeria has failed to meet this target, with the 2025 budget continuing this trend.

According to Adetiloye Aiyeola, the chief visionary officer of Awesome Continental Natural Foods & Farm, Tinubu’s proposed agricultural budget for 2025 falls short of the Maputo declaration’s mandate for a 10 per cent allocation of the country’s budget to agriculture.

Aiyeola, who voiced his opinion on Business Edge, a television programme monitored by Business a.m., asserted that the allocation would be insufficient to boost the development of Nigeria’s agro-industrial sector.

Despite being critical of the government’s lack of compliance with the Maputo Declaration’s 10 per cent allocation for agriculture, the food production expert acknowledged the administration’s effort to increase funding to the sector.

Aiyeola commended the government for increasing the agriculture budget by 100 per cent from 2024 levels, including a 130 per cent increase in capital allocation compared to the previous year, a significant boost in funding for the agricultural sector.

Aiyeola, while welcoming the increase in the agricultural budget, emphasised that the allocation was still insufficient to truly transform the sector. He added that spending wisely and prudently is more important than increasing spending.

In particular, he stressed the importance of investing in post-harvest operations, which is essential for preserving and processing agricultural products efficiently.

Aiyeola also emphasised the essential role agriculture plays in Nigeria’s economy and its potential for wealth creation, stating that expanding the agro-industrial base could significantly boost the country’s economic development.

He noted that agriculture not only provides employment opportunities for over 70 per cent of Nigeria’s workforce, particularly in rural areas but also contributes substantially to the country’s GDP. Therefore, according to Aiyeola, it is crucial to prioritise and allocate adequate resources to the agriculture sector to harness its potential and ensure sustainable growth for the nation.

He stated: “I look forward to a Nigeria where the government and all stakeholders involved can pull their weight to ensure that we have a more industrialised agricultural system, Nigeria can escape poverty by doing that.

“Food security and agriculture encompass more than just farming; they also involve the development of trade, roads to markets, distribution networks, storage, logistics, and infrastructure.

“Even if the 2% allotted is a considerable increase over the budget from the previous year, I do not believe it will bring us to the Promised Land where no citizen would ever go hungry. I believe there is still a great deal of work to be done.”

To ensure that the agricultural sector is not left behind in the drive for industrialisation, Aiyeola proposed that the government should provide incentives for investments in agro-processing, agro-allied industries, and agri-business ventures, to boost the value-added potential of the sector and enhance the country’s competitiveness in international markets.

African Farmer Mogaji, former chairman of Agriculture & Agro-Allied Group, also shared his views on the budgetary allocation for agriculture in the 2025 Appropriation Bill.

Mogaji expressed his enthusiasm over the significant increase in the allocation for agriculture, which he said has been welcomed by agricultural stakeholders. However, he noted that the increment still falls short of the 10 per cent commitment as enshrined in the Maputo Declaration, which African countries, including Nigeria, signed in 2003, agreeing to allocate at least 10 per cent of their national budgets to agriculture.

Mogaji underscored the need for Nigeria to follow the lead of other African countries that have successfully implemented the 10 per cent budgetary allocation for agriculture, highlighting that they have made more significant improvements in agricultural development compared to Nigeria.

While acknowledging that the current allocation is still a positive step in the right direction, Mogaji emphasised that until Nigeria allocates at least five per cent of its budget to agriculture, the country will not be able to achieve the level of agricultural growth and development necessary to sustainably boost food security.

Mogaji commended the government’s commitment to supporting agriculture, evidenced by the increased budgetary allocation. In his words:  “Well, with this budget, it shows that the government is putting the money where their mouth is. I have been privileged to engage at the highest level of operators in the agricultural sector. From this government, I see a sincerity of heart to get things done.

“Many people have engaged personally with the minister and he not just listens, but he also acts.  We’ve seen a few of the directors in the ministry also having the same language and body language. So I’m hoping that this will be sustained. I’m hoping, if this is sustained, then we would see a transformation.”

The agricultural expert further highlighted the necessity of including private sector players in the implementation and monitoring of the agricultural budget.

According to him, the government must tap into the expertise of private sector stakeholders, as they should not only be involved in the monitoring and evaluation of the budget but also its implementation.

Despite acknowledging the current difficulties in the agricultural sector, Mogaji remained optimistic that a combination of government sincerity, private sector commitment, and the efforts of patriotic individuals could help stabilise food prices by the middle of 2025.

Meanwhile, the Nigerian Association of Agricultural Economists (NAAE) commended the federal government for its increased focus on agriculture in the 2025 Appropriation Bill.

Christopher Eze, the NAAE national president, affirmed the association’s positive assessment of the proposed budget allocation to the agriculture sector during an interview with reporters in Owerri.

Eze pointed out that the combined allocation of N155.36 billion for recurrent expenditure and N242.50 billion for capital expenditure under the ministry demonstrated a solid commitment by the government to strengthen the country’s agricultural sector.

“This allocation underscores the Federal Government’s recognition of agriculture as a cornerstone for national food security, economic diversification, and rural development.

“Notably, the budget’s capital expenditure for agriculture signifies a progressive move toward boosting infrastructure, enhancing research, and promoting sustainable practices in the sector,” he stated.

While commending the government for prioritising agriculture in its budget, NAAE urged the administration to exercise prudence and accountability in the implementation of the allocation.

The association pointed out the need for effective utilisation of the allocated funds, stressing that priority should be given to initiatives that directly impact smallholder farmers, reduce post-harvest losses, and strengthen value chains for key food crops.

The NAAE also brought to the fore the importance of maintaining transparency and accountability in the distribution of resources to ensure that all stakeholders, particularly those in rural and marginalised regions, benefit from the increased budgetary allocation.