The Nigerian agribusinesses are showing resilience despite persistent challenges ranging from insecurity and rising costs to climate change impacts, according to the Fourth Edition of the Nigerian Agribusiness Survey released by Agramondis in May 2025.
The survey, which gathered insights from 118 agribusinesses across the country, revealed that small and medium enterprises (SMEs) dominate the industry, with 85% employing fewer than 50 people and more than half operating for less than five years. However, a gradual shift toward multi-sector participation was noted, as only 55% of businesses operated in a single sub-sector in 2024, down from 61% in 2023.
Key findings:
Insecurity tops concerns: Half of respondents cited insecurity — including crop theft, conflicts, and supply chain disruptions — as the biggest threat to operations.
High input costs remain a drag: 45% of agribusinesses struggle with expensive and low-quality inputs, while 33% face difficulties accessing finance.
Infrastructure gaps persist: 76% of respondents identified infrastructure as the most critical area needing urgent government intervention.
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Climate change weighs heavily: 40% of agribusinesses now advocate for government-led climate policies, more than double the number in 2022.
AI adoption rising: 30% of agribusinesses are integrating artificial intelligence, especially for demand forecasting, weather prediction, and precision farming.
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Mixed reviews for policies: The National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP) has only 17% strong support, while the majority remain sceptical about its effectiveness. Fuel price hikes and naira devaluation were also flagged as major operational burdens.
Long-term optimism: Despite short-term pressures, 73% of agribusinesses expect significant improvement in performance within the next three years, driven by technology, partnerships, and supportive policies.
Agramondis CEO, Johanna Joy Farrell, noted that the sector remains “resilient and evolving,” stressing that businesses are “embracing AI, diversifying value chains, and calling for stronger infrastructure and climate-responsive policies.”
The report underscores the urgent need for coordinated interventions to address insecurity, stabilise policies, and improve infrastructure while supporting innovation and sustainability in Nigeria’s agricultural sector.
