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Transforming Nigerian agriculture in the context of a green economy: financing challenges, opportunities and mechanisms

Author

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  • Olomola, Aderibigbe
  • Adesugba, Margaret

Abstract

Concern is growing about green economy in the country on account of the bourgeoning population with rising poverty and increasing risk of food insecurity and environmental degradation and in consonance with the renewed emphasis being given to the phenomenon all over the world. Although the agricultural sector has demonstrated improved performance since the inception of ATA in 2011, financing bottlenecks remain; and the major concern is the lack of emphasis on green finance. This paper advocates for financing mechanisms to support a transformation agenda that moves agriculture away from activities that are nature degrading and environment polluting to those that are nature preserving and environment friendly. It argues that an agricultural financing framework to engender a green economy in Nigeria must be pursued within the context of sustainable development and poverty alleviation in which the integration between economic, social and environmental pillars of development are recognized and reinforced. Specifically, the paper examines the gaps between agricultural transformation and green finance in Nigeria, identifies the constraints and opportunities for green agriculture financing and articulates appropriate financing mechanisms. These include value chain financing to support integrated farming systems, support for organic agriculture by NIRSAL, financing of product and agricultural system certification, financing the monitoring of natural resource exploitation and restoration, financing the development of climate change buffers, inter-agency collaboration in financing desert encroachment and restoration of degraded land and mainstreaming green finance in the implementation of the staple crop processing zone component of ATA. In conclusion, the paper calls for the crafting of a “green-print” for a green agricultural economy – a well-informed policy layout for greening agricultural growth in Nigeria with an implementation plan to serve as the solid investment foundation required for the industrialization of the Nigerian economy.

Suggested Citation

  • Olomola, Aderibigbe & Adesugba, Margaret, 2015. "Transforming Nigerian agriculture in the context of a green economy: financing challenges, opportunities and mechanisms," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 5(01).
    • Handle: RePEc:ags:naaenj:267816
    DOI: 10.22004/ag.econ.267816
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    References listed on IDEAS

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    1. Paul J. Ferraro & R. David Simpson, 2002. "The Cost-Effectiveness of Conservation Payments," Land Economics, University of Wisconsin Press, vol. 78(3), pages 339-353.
    2. Georg Inderst & Christopher Kaminker & Fiona Stewart, 2012. "Defining and Measuring Green Investments: Implications for Institutional Investors' Asset Allocations," OECD Working Papers on Finance, Insurance and Private Pensions 24, OECD Publishing.
    3. Gyimah-Brempong, Kwabena & Olomola, Aderibigbe, 2014. "Loan demand and rationing among small-scale farmers in Nigeria," IFPRI discussion papers 1403, International Food Policy Research Institute (IFPRI).
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