1.1 Introduction
Agribusiness is defined as the integration of agricultural production with business principles, encompassing all activities involved in the production, processing, marketing, and distribution of agricultural products for profit (FAO, 2018). In the Nigerian context, agribusiness is not only vital for domestic food security but is also a key driver for export promotion, particularly for crops such as cocoa, sesame, cashew, and other high-demand agricultural commodities (Akinola & Adeoye, 2019).
Export promotion involves strategies and activities aimed at increasing the quantity and quality of goods sold to international markets, thereby earning foreign exchange and enhancing a country's global trade presence (Okoro, 2021). For Nigeria, the potential of agricultural products in the international market is significant; however, limited technological adoption, poor infrastructure, and inadequate marketing strategies have constrained the sector's export performance (FAO, 2020).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of the Study
Agribusiness in Nigeria has evolved significantly over the years, shaping the country's economic landscape and export potential. According to Ogunleye (2020), the roots of agribusiness in Nigeria can be traced back to pre-colonial times, where agricultural activities were primarily subsistence-based and organized around smallholder farming. During this period, traditional markets served as the main channels for exchanging agricultural produce, with limited emphasis on large-scale production or export (Ogunleye, 2020). It is reported that the colonial era introduced cash crop cultivation, such as cocoa, palm oil, and groundnuts, which marked the beginning of structured agricultural trade in Nigeria (Akinola & Adeoye, 2019).
Agribusiness is widely recognized as a strategic tool for enhancing agricultural productivity and promoting economic development. According to Ogunleye (2020), agribusiness encompasses the integration of farming with business principles, including production, processing, marketing, and distribution of agricultural commodities. It is reported that effective agribusiness practices increase the quality and quantity of agricultural products, thereby positioning them for both domestic consumption and international markets (Akinola & Adeoye, 2019).
In Nigeria, the agricultural sector has significant potential for export promotion. It is stated that crops such as sesame, cocoa, cashew, and palm oil hold a competitive advantage in global markets due to their high demand and quality attributes (FAO, 2020). However, it is contended that despite this potential, Nigerian agricultural exports remain underdeveloped because of infrastructural deficits, limited access to finance, and weak linkages between research institutions and agribusiness firms (Okoro, 2021).
Moreover, post-harvest losses have been affirmed as a major challenge affecting the availability of exportable products. IITA (2019) asserted that poor storage facilities, inefficient transportation networks, and inadequate processing capabilities reduce the competitiveness of Nigerian agricultural products in foreign markets. On the other hand, the adoption of modern agribusiness practices, including mechanized production, value addition, and strategic marketing, is reported to enhance product quality and expand export opportunities (Nwankwo, 2018).
Export promotion is further influenced by government policies, incentives, and market access strategies. According to FAO (2018), supportive regulatory frameworks and export facilitation schemes encourage agribusinesses to invest in improved production and marketing systems. It is contended that without such support, agribusiness enterprises may struggle to maintain international standards and meet foreign market requirements. On the other hand, proactive agribusiness companies such as Sesami Agro Allied Limited have demonstrated that strategic planning, quality control, and innovation are key drivers of export success.
This study is set against the backdrop of these realities, focusing on the role of agribusiness in promoting the export of Nigerian agricultural products.
1.3 Statement of Problems
Investigation revealed that the agricultural sector is widely recognized as a vital component of Nigeria's economy, providing employment, food security, and raw materials for industrial growth (Ogunleye, 2020). However, the sector is faced with persistent challenges that hinder its capacity to significantly contribute to export promotion. One of the major issues is the inadequate adoption of modern agribusiness practices, which is limiting the production and quality of agricultural commodities intended for international markets (Akinola & Adeoye, 2019).
Furthermore, limited access to funding and credit facilities is restricting the expansion and modernization of agribusiness enterprises in the country (Okoro, 2021). Small and medium-sized agricultural firms, including exporters, are often unable to invest in advanced processing and packaging technologies, which are essential for making Nigerian products competitive in global markets. It is against this backdrop that this study seeks to examine the role of agribusiness in export promotion of Nigerian agricultural products.
1.4 Aim and Objectives of the Study
The primary aim of this study is to investigate how agribusiness contributes to the export promotion of Nigerian agricultural products.
The specific objectives of this study are:
- To examine the role of agribusiness practices in enhancing the quality and quantity of exportable agricultural products.
- To identify the challenges within the existing system that hinder export promotion.
- To assess the impact of government policies and market support on agribusiness-led export activities.
- To propose strategies that will improve export performance of Nigerian agricultural products through agribusiness.
1.5 Research Questions
Based on the stated objectives, the study seeks to answer the following questions:
- How do agribusiness practices influence the quality and quantity of Nigerian agricultural products for export?
- What are the major challenges within the existing system that hinder export promotion of agricultural products?
- How do government policies and market support affect the export activities of agribusinesses?
- What strategies will enhance the export performance of Nigerian agricultural products through agribusiness?
1.6 Significance of the Study
The outcome of this research will inform government agencies on the type of interventions and incentives that will stimulate growth in agricultural exports and foreign exchange earnings. In addition, the study will provide data that will inform policies and incentives aimed at boosting agricultural exports.
Furthermore, this study will reveal effective business practices, marketing strategies, and value addition techniques that will improve productivity and product quality, making Nigerian agricultural products more competitive in global markets.
Lastly, the research will contribute to existing knowledge on agribusiness and export promotion, providing a reference point for future studies in agricultural economics, trade, and development. It will also serve as a guide for students and researchers who will be interested in exploring the dynamics of agribusiness-led export promotion in Nigeria.
1.7 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: Agribusiness practices have no significant impact on the export performance of Nigerian agricultural products.
- H1: Agribusiness practices significantly influence the export performance of Nigerian agricultural products.
1.8 Scope of the Study
This study will focus on the role of agribusiness in promoting Nigerian agricultural products for export, with Sesami Agro Allied Limited in Kano State as a case study. The research will examine agribusiness operations, production practices, and export activities, as well as systemic factors such as infrastructure, policy, and market access.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Agribusiness: The integration of agricultural production with business processes, including production, processing, marketing, and distribution of agricultural products for profit (FAO, 2018).
Export Promotion: Strategies and activities aimed at increasing the sale of goods and services to foreign markets to earn foreign exchange and enhance international trade presence (Okoro, 2021).
Post-Harvest Loss: The loss of agricultural products after harvest due to poor storage, handling, and transportation (IITA, 2019).
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