Digital finance and agri-food value chains: Case studies from Nigeria

Yeshua Russel

Research reports from International Food Policy Research Institute (IFPRI)

Abstract: Nigeria’s agri-food sector is one of the largest and most complex in sub-Saharan Africa, encompassing diverse crops, regions, actors, and markets. With agriculture contributing approximately 24% to the national GDP and employing over 70% of the rural workforce (CBN, nd), the sector plays a central role in livelihoods, food security, and inclusive growth. Within this sector, agri-food value chains constitute the connective tissue that links smallholder farmers, processors, traders, input suppliers, and consumers, both within the domestic economy and across international markets. Nigeria's agricultural output is predominantly driven by staple food crops such as maize, rice, and cassava, while export-oriented value chains like cocoa provide significant foreign exchange and economic diversification potential. These chains vary widely in terms of modernization, capital intensity, and integration into digital financial services. Staple crop chains are typically domestic-facing and labor-intensive, offering high employment shares and deep linkages with poverty alleviation. Export-oriented chains, although narrower in farmer reach, tend to offer higher margins, foreign earnings, and exposure to quality standards and global market dynamics.

Keywords: agrifood sector; livelihoods; value chains; smallholders; staple foods; exports; agricultural value chains; digital technology; Nigeria; Africa; Western Africa; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2025-07-14
New Economics Papers: this item is included in nep-agr
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