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Agriculture and Energy: Opportunities for Synergy in Nigeria

By Ese Ufuoma
Nigeria stands at a crucial point where the integration of the agriculture and energy sectors can catalyse sustainable development, enhance food security, and drive economic growth. Recent initiatives underscore the nation’s commitment to harnessing this synergy.

The agriculture sector, employing approximately 38% of Nigeria’s workforce, is poised for transformation through energy integration. Recognising this, the federal government inaugurated the Agricultural Sector Working Group (ASWG) in April 2025 to foster cross-sector collaboration aimed at strengthening food systems.

The Agricultural Sector Working Group (ASWG) is a strategic initiative launched by the Federal Government to enhance the nation’s food systems and agricultural development. Inaugurated in Abuja by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, the ASWG serves as a collaborative platform uniting key stakeholders, including government bodies, private sector entities, research institutions, farmer organisations, civil society groups, and development partners to drive the implementation of agri-food system transformations in alignment with the African Union’s resolutions, notably the 2025 Kampala Declaration.

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Another significant stride in this direction is the launch of the $510 million Special Agro-Industrial Processing Zones (SAPZ) project, financed by the African Development Bank and partners. This initiative aims to reduce post-harvest losses and create employment by establishing processing facilities closer to farming communities.

Access to reliable energy remains a challenge for many rural agricultural communities. To address this, Olam Agri and Husk Power Systems have initiated a commercial and industrial solar project in Nigeria’s rice-producing regions. This project seeks to transition agriculture to sustainable energy infrastructure, reducing dependence on diesel generators.

Complementing this, the Energising Agriculture Programme (EAP) by the Rural Electrification Agency and Rocky Mountain Institute is scaling the productive use of distributed energy resources. By building a pipeline of agriculture-energy projects, EAP aims to enhance rural electrification and agricultural productivity.

Innovations Bridging Agriculture and Energy
Innovative solutions are emerging at the intersection of agriculture and energy. CoolCycle, a Youth Sustainable Development Network initiative, integrates renewable energy with cold storage technology to reduce post-harvest losses and enhance food security.

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Furthermore, the Jigawa Ethanol Programme exemplifies the potential of bioenergy. By processing sugarcane and cassava into biofuel, the programme aims to diversify energy sources and reduce environmental impacts.

Strategic Investments and Policy Support
Strategic investments are crucial for sustaining the agriculture-energy nexus. The African Development Bank’s mobilisation of $2.2 billion to develop agricultural processing zones across 28 states underscores this commitment.
International collaborations further bolster these efforts. In November 2024, Nigeria and France signed agreements, including a €300 million investment plan, to support infrastructure, agriculture, and renewable energy projects.

The convergence of the agriculture and energy sectors in Nigeria presents a transformative opportunity. By leveraging renewable energy solutions, fostering innovative projects, and securing strategic investments, Nigeria can enhance food security, stimulate economic growth, and pave the way for a sustainable future.

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