Why agriculture must wear a new face — Xtralarge boss

Nigeria's agricultural sector stands at a crossroads. While farming remains the backbone of Africa's largest economy—employing over 35 million people and contributing roughly 24% of GDP—the industry is struggling with outdated practices, low mechanization, and weak profitability that continues to drive youth migration to cities and abroad.

At the 2026 Vanguard Economic Discourse in Lagos, the Group Managing Director of Xtralarge Farms and Resorts delivered a stark message to policymakers and investors: **agriculture must wear a new face**. The call for radical transformation reflects a growing consensus among Nigeria's agribusiness elite that incremental improvements are no longer sufficient. What's needed is a complete repositioning of farming from a subsistence activity to a modern, profitable enterprise capable of delivering both food security and economic growth.

### Why Nigeria's Agriculture Sector Is Failing

Despite Nigeria's 91 million hectares of arable land, agricultural productivity per hectare remains among Africa's lowest. The average Nigerian farmer generates barely ₦500,000 ($320 USD) in annual income—well below the poverty line. Yields for staples like maize and rice lag 40-60% behind global benchmarks, largely due to fragmented landholdings (averaging 2.3 hectares), limited access to credit, poor rural infrastructure, and minimal investment in modern farming technology.

Climate volatility has worsened the crisis. Erratic rainfall patterns, desertification in the north, and seasonal flooding in the south have devastated harvests repeatedly since 2020. Meanwhile, post-harvest losses remain catastrophic: 20-40% of produce spoils before reaching markets due to inadequate storage and transport infrastructure.

### What Modern Farming Actually Means

The sector's makeover must address three pillars: **mechanization, digitalization, and market linkage**. Large-scale commercial farms in Nigeria—like those operated by Xtralarge and a handful of competitors—have already proven the model works. These operations employ precision agriculture, climate-smart techniques, cold-chain logistics, and direct buyer relationships to achieve 3-5x higher margins than smallholder farms.

Government initiatives like the Presidential Fertilizer Initiative and National Agricultural Technology Adoption Program (NATAP) have laid groundwork. Yet adoption remains sluggish. Only 8% of Nigerian farmers use improved seeds; mechanization coverage reaches just 5% of smallholder operations.

## What Will Drive Real Change in Nigeria's Agriculture?

The transformation requires three catalysts: **aggressive private investment**, **policy certainty**, and **youth re-engagement**. Agribusiness startups and impact funds are beginning to fill gaps in input distribution and equipment leasing. The CBN's agricultural lending target of 40% of credit facilities signals political commitment. But farmers need proof—demonstration farms, accessible credit lines, and long-term offtake agreements.

## How Can Investors Capitalize on Nigeria's Agricultural Boom?

Entry points span the value chain: input supply (seeds, fertilizers, agrochemicals), farm mechanization platforms, agro-processing (cassava-to-starch, palm oil refining), logistics, and fintech for farmer credit. Companies bridging the smallholder-commercial divide—think equipment leasing networks or cooperative aggregation models—face the highest demand and clearest exit routes via acquisition.

---

##