Opportunities, challenges of SMEs in Nigeria's agriculture

With Nigeria's economy currently in a recession, there is a growing consensus that now is the opportune moment to tap into the vast potential of the agriculture sector. Developing the value chain has emerged as a key priority to stimulate growth in agriculture. In a recent interview with CNBC Africa, Belima Alagun, Founder of Brits Fresh Foods, and Dr. Shae Guai, Managing Director of Ibad Farms, shed light on the role, challenges, and opportunities for small and medium enterprises (SMEs) in Nigeria's agriculture value chain. Belima Alagun's Brits Fresh Foods is a food processing company based in Lagos that focuses on promoting healthy lifestyles by delivering salads and sandwiches directly to consumers' doorsteps. On the other hand, Dr. Shae Guai's Ibad Farms, located in a small agricultural village in Ocean State, specializes in catfish farming, oil palm cultivation, and plans to expand into poultry farming. The dialogue delved into the imperative of not only cultivating agricultural produce but also adding value to them before export. The conversation revolved around the need to shift from exporting raw materials to exporting processed goods, thereby maximizing the value chain and enhancing the sector's competitiveness on the global stage. Both entrepreneurs highlighted the challenges they face in adding value to their products, particularly in terms of funding and technical expertise. Alagun emphasized the importance of providing value to customers by ensuring premium quality produce and offering competitive pricing amidst the current economic climate. She also underscored the significance of supporting local farmers through credit facilities and agronomic training to maintain high standards of agriculture production. The interview further addressed the growing interest of young people in pursuing careers in agriculture, dispelling the notion that farming is solely for older generations. Alagun shared her journey of establishing Brits Fresh Foods and the challenges she encountered in establishing a seamless supply chain from farm to fork. She highlighted the critical issue of storage in Nigeria's agricultural landscape and the necessity of efficient logistics to deliver fresh produce to consumers. Despite the hurdles they face, both Alagun and Guai expressed optimism about the opportunities available for SMEs in Nigeria's agriculture sector. They acknowledged the government's efforts to promote agriculture as a key economic driver but called for more concrete actions to support entrepreneurs in the field. The conversation concluded with a promise to delve deeper into the role of SMEs in the agriculture value chain in the future. As Nigeria aims to diversify its economy and harness the potential of agriculture, SMEs like Brits Fresh Foods and Ibad Farms are at the forefront of driving innovation and growth in the sector. Their experiences underscore the importance of value addition, logistical efficiency, and strategic partnerships in unlocking the full potential of Nigeria's agriculture value chain.