With the recent cheering news of narrowly exiting one of its worst recession in 5 years by a paltry 0.11% growth, it is important to comment that despite the restriction in movement due to the covid-19 pandemic and the rising herdsmen-farmers clash, Nigeria’s agriculture sector grew by 2.17 percent in 2020.
This little but significant growth is according to the recently released quarterly report by the National Bureau of Statistics. The growth is away from 2.36 percent in 2019 and 2.12 percent growth recorded in 2018.
Breakdown of the Agric Sector
The report also revealed that the sector grew by 3.42 percent in real terms in the fourth quarter of 2020, when measured against the same quarter in 2019. The sector contributed 26.21 percent to the Gross Domestic Product for the entire year.
Recall that Taxmobile.Online had recently written that the economy exited recession with a 0.11 percent growth in the fourth quarter of 2020. This is its first growth in three quarters as the coronavirus-linked lockdown was lifted across the country.
The economy slipped into recession in the third quarter of 2020 with a decline of 3.6 percent, having contracted 6.1 percent in the second quarter, leading to Nigeria’s second recession in five years.
Beaming the searchlight on Agriculture
It is pertinent to note that by the NBS’ report, there exist four sub-sectors in the country’s agricultural sector. These are Crop Production, Livestock, Forestry, and Fishery.
The NBS said crop production remained the major driver of the sector, as it accounted for 89.67 percent of the overall nominal growth of the sector in Q4 2020 and 91.44 percent share in 2020.
Is agriculture joining the Revenue giant fray ?
This development is coming at a time where the government is looking at adding more revenue-generating machinery and expanding the tax net to diversify away from crude oil revenue. With the resilience shown by the agriculture sector against current economic hostility, the sector has proven it has a huge revenue potential.