Stable and predictable policy environment: Prior to 1999, Nigeria has had unstable governance characterised by various military coups and unstable democratic government. This impacted on the implementation of policies and continuity in governance which impacts negatively on the macroeconimic environment. Since 1999 however, democracy has been sustained successfully and this has had a positive impact on the implementation of policies in the agricultural sector and the stability of the economy as a whole.
Inadequate access to Finance: the sector is faced with the challenge of low financing. Presently, only 1% of loans from the banking sector is geared towards the agricultural sector. This has made the agribusiness very discouraging for farmers and also for new entrants.
Interest rate: Lending rates in the country are quite high. At the moment, banks loan money to customers at 22%.
Employment: it has been estimated that the agricultural sector is responsible for 60% of the country’s employment.
Foreign Exchange Rates: fluctuation forex values affects the agribusiness in terms of cost of purchasing imported inputs or the cost of goods meant for exports Dependence on animal feed importation: most...