Introduction

Nigerias endowment: arable land, water,

workforce, weather
Agric employs more than 70% active labour force
Nigeria in pre-war global agricultural trade
Post-rebasing GDP: 80.2 trn. The largest economy
in Africa
Overdependence on petroleum and Benefits lost
Agric. Contrib. to GDP: 38% (20% after rebasing)
Oil prices falling, population to reach 420m in 2050

Emerging responses; The ATA

Purpose of this lecture

Introduction CTD

Agriculture In Nigeria:
Some
Defining
Low use of agric.
Inputs:
Mechanization intensity: 10 tractors per 100ha
Characteristics
compared to Indonesia :241 tractors per 100ha.
Low productivity: 54th: US$4575.35 out of 129

countries
yield per hectare is 20% to 50% of that obtained
in similar developing countries
Budgeting/expenditure for agric: 2% in Nigeria;
16% in Asia average.
Poor quality output, low standards
Training in agric schools

Agriculture In Nigeria: Some

Defining Characteristics ctd
Insecurity

Some Macroeconomic
Fundamentals
and
Inflation and the Consumer price
index
Size of the CPI and rate of inflation important to
Prospects
for
Agrimanagers of the economy and agrientrepreneurs.
preneurship
annual inflation rate is driven mostly by higher
food, housing and utilities prices
Food price inflation plays bigger role in overall
inflation rate
Cap on agric prices hurts farmers and agrientrepreneurs
But Cap on agric prices politically and socially

Importance of Agriculture
and Agribusiness
Agric major source of food and raw material for

agro-industrial processing and has strong links to

employment, national income, market
opportunities for industrial production and strong
potentials for poverty reduction and health
improvement.
Agric, Agribusiness and Agr-preneurship linked
Agribusiness helps generate or douse inflation
direct ly and visibly in the form of food inflation.
Indirectly: reflected in the rise in cost of living
arising from high food (demand pull) inflation
leading to higher wages, which, in turn,
contributes to generalised inflation through higher
cost of production.

Agricultural
No single definition or explanation
tendency and ability to see
entrepreneurship
?before others,

identify and organize resources to take

advantage of opportunities for benefit to self
or humanity
Not necessarily about starting a business
mindset, values and behaviours
a force that mobilizes other resources to meet
unmet market demand
process of creating value by pulling together
a unique package of resources to exploit an
opportunity
ability to create and build something (new)
from practically nothing

Entrepreneurship and
Economic
Growth

70 percent of an areas economic

performance and well being is dependent
upon how entrepreneurial its economy is.
Difficulty of measurement
Education
New business formation
Mobile capital
New sources
Change institutions
Social: create enabling environments

Drivers of Entrepreneurship
and Livelihood
Push and pull factors underlie livelihood
Sustainability
decisions
Schumpeter , rate of profit accumulation, and

social climate (social, political, psychological

environment)
McClelland and need for achievement
Knwoing some one
Availbility of workforce
Possibility of financial success
Access to credit
Certainty in business/regulatory environment
Ease/difficulty of filling process

Pol
icy, Entrepreneurship
government and entrepreneurs

Economic growth attributed to the role of

Promotion
and through
Livelihoods
Public policy works
economic,
judicial and legislative controls
Sustainability
purpose of public policy in livelihoods

development is to promote entrepreneurial

culture and new venture creation
Public policy during colonial era
Post Independence/Pre-Civil War: MSME loan
scheme
Post Civil War: devt plans, indigenisation
decrees,
Ongoing : ATA

Assessment of the Past

Policies and Programmes
SAP double-edged sword
Ad-hoc policies
Buy shares but Little entrepreneurial

culture developed
Little or innovation generated
Policy instability
Responses to personal or sectional quims
Apart from credit institutions, and one or
two (eg SMEDAN), others not
institutionalsied

Some On-going
Policies/Programmes
The ATA:
Adopts overall strategic vision,
clear targeting,
legislation to institutionalise key

components
Flagship now: the electronic wallet
system of input distribution
- Solves corruption
- Liberalises access
- Gives farmers confidence confidence

Gender Empowerment
and Sustainable
Livelihoods
Women high percentage of rural farming

pop.
Most are agri-entrepreneurs both outside
and within the homestead
Policy should not necessarily make women
start a business
Which first: business start-ups for women
outside the household domain or support
first to stabilize the buffeted household
before they can go into business venturing
Example of old age stipends by Anambra
State Government: give to defined
category of women?

Constraints to Agripreneurship
Schumpeters social climate: trade unions,

wages, progressive taxes

McClelland: daunting problems that kill N-Arch
(eg complete absence of roads to some
communities)
Vageries of nature and risk
Civil strife (cattle rearers and farmers)
Over/multipple taxation (local govt agents)
Market entry barriers
Ethical issues in business (Singapore and
Nigeria)
Political structural imbalances and fear of some
groups within Nigeria: investments curtailed)

Constraints to Agripreneurship Ctd

Case of the white Zimbabwean farmers in
-

Nassrawa:
But crop yields were dismal, mainly due to poorquality seed and fertiliser. Spares were hard to get
when machinery broke down.
- very little commercial farming in Nigeria
- no organised marketing here
- no mains electricity,
no piped water, no land-line,
no trained labour force,
no one handy with basic accountancy,

Case of Zimbabwean
Farmers
Ctdfacilities, no easy access
- no available research
-

to agricultural data. Roads are lousy. Theft is

endemibiggest initial headache was persuading a
bank to make a long-term loan at less than
20% interest
- For two of their first five years they did no
farming, due to the lack of bank finance. You
always need contacts,
- No marketing boards, nothingin Nigeria
youre on your own. In Zimbabwe you knew
what your pre-planting price wasand the
government guaranteed to buy what you grew.
There are no support structuresIn Zimbabwe
youd send a soil sample to the fertiliser
company and theyd tell you what sort would
be best. Theres nothing like that here.

Some Unique Challenges Facing

Nigerian Women AgriPatriarchial society
Entrepreneurs
No access to property : limited access to

land
Of 25-30 percent of registered businesses,
only 10-15 percent have access to bank
credits
Clow education and skills
Cant prepare business plans:
Cant register businesses
Tough and rugged business environment
(the generator example)
Poor access to research and extension

Enable or Frustrate
Entrepreneurship and
Livelihoods
The cornerstone
of entrepreneurship is the
belief in individual autonomy and discretion,
individuals as the primary unit for creating
new activities
Agric sector in Nigeria classically
individualised: market near perfectly
competitive
beyond attributes of individuals, institutions
(hard and soft) are crucial
generation of new organizational models and
policies that change the direction and flow of
organizational activity; deter or reinforce risktaking behavior.

Institutions and How They

individuals and groups attempt to shape the
Enable
or
Frustrate
institutional
context
in a fashion that privileges
their preferred policies and programs: what
Entrepreneurship
and
groups for agri-entrepreneurs? Vioce?
Changers
of institutions and
organizational modes
Livelihoods
Ctd
for greater efficiency are entrepreneurs in their
own right
much entrepreneurial activity entails
recombination of existing materials and
structures, rather than pure novelty.
The Electronic Wallet

Institutions CDT: Case

of
Abuja
Securities
Abuja
Stock Exchange
(ASE) in June 1998 and
began operations in 1999 with the CBNas the main
and
Commodity
shareholder
; NICON, NIDB (BOI), Nigeria
Reinsurance and NBCI .
Exchange
Progress stalled by government institutions
invested considerable sums ,;suddenly, on August

8, 2001, we heard over the news that we had been

taken over by the federal government, converted
to a commodity exchange and placed under the
supervision of the Federal Ministry of Commerce.
-

Abuja SCE Ctd

the promoting institutions of ASE ceased funding

the Exchange and no funding was received from the

Federation Account from August 2001 to 2003
drafted a Warehouse Receipts Bill in 2007, passed it
the Presidency for onward transmission to the
National Assembly, but 6 year on it has not yet
been forwarded.
reached out to other ministries, like the FMARD, as
far back as 2009, to request them to do their annual
procurement of grains for their Strategic Grain
Reserves through the floor of the Exchange using
our policy auction trading system. No response

Abuja CSE ctd

in 2011, wrote to the minister of Agriculture

to seek his support in our emplacement of a

warehouse receipt system and requested
the ministry to lease their excess silos and
warehouse capacity to ASCE to enable it run
a warehouse receipt system on a pilot
scheme; till date (2013) the ministry has
not responded to us.
PLEASE MAKE YOUR OWN CONCLUSION

Role of the
The OECD Framework:
Entrepreneurial
Leadership and Governance
University
Organisational Capacity, People and Incentives
Entrepreneurship development in teaching and learning
Pathways for entrepreneurs
University business/external relationships for

knowledge exchange
The Entrepreneurial University as an
internationalised institution
Measuring the impact of the Entrepreneurial
University

Nurturing
Entrepreneurial
NUC 2006 through TETfund
Universities
in
Nigeria
NUC intervention important: student start-ups
are known to go far, Mark Zukerberg and
Andrew McCollum of Facebook; Larry Page and
Sergey Brin of Google
Land grant Universities planned as entrep univ.
Doubt whether Nigerian Universities can go far
because of governance defficiencies: Tragedy of
The Sonny Odogwu Chair on entrepreneurship

The Harambe
Initiative:University
to enable Nigerian
Some
Interesting
youth develop innovative solutions in Nigerias
Industry
agriculturalCollaborations
sector by providing them for
with the
necessary tools, network and exposure that
Agri-entrepreneurship
will enable them translate their ideas into
Promotion
actions.
Partners included Centre for Entrepreneurial

Development Services (EDS) at the Pan African

University and the Fate Foundation.
Another aspect Involved : Dangote Group,
Zenith Bank, Notore, and Shell Nigeria
formidable!

Collaborations for Agrientrepreneurship Promotion

National Schools Agriculture
Ctd
Programme(NSAP) aimed at introducing
agri-preneurship among very young Nigerians
flagged off by the FG in October 2014
establishment of Student Agricultural Clubs
(SACs)
collaboration with Dizengoff Nigeria Ltd.
Partners: FG, Secondary schools, agri-industry
leaders!

Conclusions
Agric. is key to growth and

development
Most Nigerians are either farmers of
involved in farm-related enterprises
Agric and Agr-entrepreneurship cant
flourish to support livelihoods unless
enabling environment is created
Hope in new best practice-calibrated
initiatives being developed eg YouWin
Role of universities crucial

Some
Recommendations
Universities generating innovations and

arranging collaborations
Research: measuring contribution of
entrepreneurship to growth: the
Kauffmann Foundation approach
Subsidiary Units (LG) being more active
Support initiatives that promote pure
entrepreneurship
Contests among government MDAs for
institutional change in support of
entrepreneurship

Recommendations
CTD
Reducing Crises and insecurity

THANK YOU VERY MUCH