Agricultural Exports, Value Addition and Economic Development: The Nigerian Experience, 2015-2023

The Nigerian agricultural sector, which was the mainstay of economy before the commercialisation of oil, facilitated a look into how value-add in the context of agricultural exports can bring about economic development. The study did this by focusing on three main products (sesame seeds, cashew nuts, and high-quality raw cocoa beans), providing specificity in product coverage, which was lacking in extant literature. The study was specifically concerned with examining the extent to which value addition influenced the acceptability of Nigeria’s agricultural exports in the international market, as well as its effect on GDP and employment creation. The study also examines challenges faced in the promotion of value addition in the context agricultural exports. To achieve the paper objectives, an explanatory sequential mixed methods design was adopted. Regression analysis was used based on quantitative data collected via a questionnaire survey. Data was collected, in primary form, from a cross section of 380 respondents, made up of members of top commodities associations and officials of selected ministries, as well as the Nigerian Export Promotion Council (NEPC). The study adopted absolute advantage theory to explained the work. Findings arrived at indicated that value addition had positive and significant positive effect on the acceptability of Nigeria’s agricultural exports in the international market. Additionally, value addition on agricultural exports was found to be a positive predictor of Nigeria’s GDP, as well as employment generation. Furthermore, several challenges were exposed that hampered the implementation of value addition activities on Nigeria’s exports. It was therefore recommended that sustained partnership with international organisations and other stakeholders be sought for the purpose of simplifying the certification process to the benefit of encouraging more participation in the Nigerian agricultural value chain. There should also be improved access to affordable agriculture finance to address some of the challenges inherent in the sector. There is also the needed provision of necessary infrastructure development as well as intensification of innovations and vocational skills training. The operations of agencies saddled with the responsibility of implementing agricultural value addition related activities should also be streamlined in order to reduce bottlenecks in accessing access to such services by industry and stakeholders.