Agribusiness is a major source of commodity exchange for many countries, including Nigeria. However, in Nigeria, certain factors affect the growth and development of agribusiness.
The 4 major factors affecting the growth of agribusiness in Nigeria are highlighted below:
Access to loans/funding
Many agribusinesses are faced with the challenge of access to credit. This can be due to the unawareness of existing financial institutions that offer loans to agribusinesses, especially start-ups. Also, lack of collateral and prejudice in loan delivery can hinder access to loans.
Access to target market
Having access to the target market is another major challenge to the growth of agribusiness in Nigeria. Many small-scale agribusinesses are based in rural areas where low-income earners are found and the population is usually small. Inaccessibility of the market is often due to improper market systems associated with imperfect competition.
Proper business planning
A business plan contains the relevant components of a business, including means of access to loans and markets, clear and attainable business targets, common challenges of the business and how to deal with them. Small and micro agribusinesses lack proper business plans, and as such, encounter avoidable difficulties and experience stunted growth.
Access to technology
Access to innovative and technological methods is another major challenge of agribusinesses in Nigeria. The use of technology reduces the cost of transactions, enhances the timely distribution of information and improves skill acquisition for increased productivity.
What other factors do you think affect the growth of Agribusiness in Nigeria? You can list them in the comment section.