14.3 Sectors in Nigeria Constituting the Bioeconomy
In Nigeria, agriculture is split into four main parts: growing crops, raising animals, fishing, and forestry. Growing crops is the biggest part, making up most of what agriculture produces (about 87.6%). After that comes raising animals, fishing, and forestry, each making smaller parts of what agriculture does (8.1%, 3.2%, and 1.1% respectively). Agriculture is a huge deal in Nigeria—it’s been the biggest part of the country’s economy for the past seven years, making up about a quarter (24%) of everything the country makes. And it’s a big employer too, giving jobs to over a third (36%) of the people working in Nigeria.
The food and beverage industry plays a vital role in Nigeria’s economy, mirroring its significance globally. Over recent years, this sector has gained increased value and relevance in contributing to Nigeria’s economic landscape. Ranked by the World Trade Organization as the largest food market in Africa, Nigeria boasts substantial investments and notable imports within its local food industry. Approximately, the food and beverage sector contributes around 22.5% to the manufacturing industry value and holds a 4.6% share of the country’s GDP. A report from the Central Bank of Nigeria in 2018 highlighted that Nigerians allocate approximately 73% of their income to food and beverage products. Interestingly, while a significant portion of consumers prefers imported products, there is a growing trend toward indigenous brands, meeting the demand for local flavors. According to projections by the IMF and PwC, Nigeria is anticipated to be among the fastest-growing large economies in Africa. Forecasts suggest an annual GDP growth rate of 4.2% between 2016 and 2050, potentially elevating it to the 14th largest global economy by 2050. With an expanding population, Nigeria is expected to rank as the third most populous country globally, surpassing the United States. The expenditure on food in Nigeria reached nearly USD 44 billion in 2017, with an average annual spending of about USD 220 per person, predominantly among low-income consumers. The COVID-19-induced lockdowns led to a shift in spending patterns, witnessing increased prioritization of essentials, including food and beverages. Considering Nigeria’s growing population and urbanization, the food and beverage industry presents substantial opportunities. This overview aims to highlight industry developments, potential trends, and emerging opportunities within this thriving sector (Adeoye & Elegunde 2012).