Green Alternative Policy Summary
Policy · Agriculture
Policy date: 2016-06-15
A Policy promotes Nigeria's agricultural sector by encouraging private sector leadership and focusing on food security and export quality. It targets smallholder and commercial farmers in crop, livestock, fisheries, and aquaculture value chains. This aims to meet domestic needs and reduce oil dependency.
What Is This Policy?
The Green Alternative — officially the Agriculture Promotion Policy (APP) 2016–2020 — is Nigeria’s strategic agricultural sector roadmap, designed to build on the foundation of the Agricultural Transformation Agenda (ATA) and close two critical national gaps: the inability to meet domestic food requirements, and the inability to export agricultural produce at the quality levels required for global market success. The policy repositions agriculture as a government-enabled, private sector-led agribusiness ecosystem, prioritising food security, import substitution, job creation, and economic diversification away from crude oil dependency.
Who Does It Target?
Smallholder and commercial farmers across crop production, livestock, fisheries, and aquaculture value chains Agribusiness investors, processors, commodity traders, and export-oriented enterprises Financial institutions, development finance organisations, and agricultural insurance providers State Governments and Local Government Areas with primary responsibility for land, extension services, and rural infrastructure Federal MDAs including the Ministry of Finance, Ministry of Power, Ministry of Transportation, and Ministry of Trade & Investment Development partners, international donors, research institutions, and NGOs supporting agricultural transformation Youth, women, and rural farming communities as priority beneficiaries of inclusive growth programmes
What Does It Aim to Achieve?
Grow the integrated agriculture sector at 1x to 2x Nigeria’s average GDP growth rate (targeting 6%–12% annual sector growth versus the 3%–6% recorded under the ATA) Achieve food security and import substitution by closing domestic demand-supply gaps in rice, wheat, maize, fish, dairy, soya beans, poultry, horticulture, and sugar Generate foreign exchange and build a high-quality Nigerian agricultural export brand for cocoa, cassava, cashew, ginger, sesame, oil palm, yams, beef, and cotton Create jobs and diversify the economy, with agriculture currently employing 70% of Nigeria’s labour force and contributing 23% of GDP Crowd in private sector investment across the full agricultural value chain, from input supply and production through to storage, processing, and market access Meet Nigeria’s Maputo Declaration commitment of 10% federal budgetary allocation to the agricultural sector
Key Features
Agriculture as a Business: Government-enabled, private sector-led approach as the primary growth driver; FMARD transitions to a policy-maker and regulator role rather than a direct programme administrator Priority Crop Strategy: Domestic focus (2016–2018): rice, wheat, maize, soya beans, tomatoes. Export focus (2016–2018): cocoa, cassava, oil palm, sesame, gum Arabic. Expanded export crops from 2018: bananas, avocado, mango, fish, cashew Value Chain Approach: End-to-end interventions across input supply, production, storage, processing, marketing, and consumption; builds linkages between value chain stages to drive sustained prosperity Three Strategic Pillars: Theme 1: Productivity Enhancements (land, soil, seeds, fertiliser, storage, processing, marketing); Theme 2: Crowding in Private Investment (finance, agribusiness development); Theme 3: FMARD Institutional Realignment Climate-Smart Agriculture: Integrates environmental sustainability and responsible use of land, water, and ecosystems into all agricultural production and policy instruments Nutrition-Sensitive Agriculture: Directly addresses stunting, wasting, and malnutrition particularly for children under 5, nursing mothers, and persons with chronic illness, embedding food security as a constitutional right Performance Metrics: FMARD to periodically publish key performance indicators — e.g. rice paddy tonnage, yields per milking cow — to track progress and inform investor and policy decisions
Current Status
Rollout Stage: Active and operationalised — launched June 15, 2016; anchored on three federal constitutional pillars: promotion of agricultural investment, financing of agricultural development, and research for agricultural innovation Rice Production: Dry Season Farming Growth Enhancement Scheme raised rice production to 5.7 million tons (from ~2.3 million tons at ATA baseline), approaching the 7 million-ton domestic demand; rice imports still exceed $1 billion annually Export Wins: In June 2017, FMARD recorded the export of 72 metric tons of yams to Europe — an early milestone in building a quality brand for Nigerian agricultural produce Input System Reform: Building on the ATA’s Growth Enhancement Scheme (GES) e-Wallet platform which registered over 10.5 million farmers; APP reforms subsidy leakages and improves seed and fertiliser supply chains Finance & Credit: Collaboration with CBN, NIRSAL Plc., Bank of Agriculture (N15 billion recapitalised), Bank of Industry, and commercial banks to expand agriculture’s share of formal credit from ~1% to a higher threshold; lending rates targeted for reduction Institutional Reform: FMARD restructuring underway with plans to deploy up to 15,000 additional extension workers; improved federal-state coordination mechanisms; performance linked to reward systems for institutions
How to Access
Farmers & Farmer Groups: Register with the Growth Enhancement Scheme (GES) platform or state Agricultural Development Programme (ADP) for targeted subsidies on seeds and fertiliser; engage FMARD-linked commodity value chain clusters Agribusiness Investors: Engage FMARD’s investment facilitation desk; access NIRSAL Plc. credit guarantees and interest rate subsidies; partner in Staple Crop Processing Zones (SCPZs) and value chain investment consortia Exporters: Work with FMARD’s export quality standards and traceability system; access intelligence on export market requirements, permissible contaminant levels, and consumer preferences for target commodities State Governments: Engage in federal-state agricultural policy coordination through the National Council on Agriculture; align state agricultural budgets with APP priority crops and value chains Development Partners: Collaborate through FMARD’s partnership framework; provide technical assistance and co-financing for value chain infrastructure, research, and extension systems Contact: Federal Ministry of Agriculture & Rural Development (FMARD), Abuja | fmard.gov.ng | Nigerian Investment Promotion Commission (NIPC): nipc.gov.ng
Important Terms
APP (Agriculture Promotion Policy): The official name of the Green Alternative policy; the federal strategic framework for agricultural development 2016–2020, building on and replacing the ATA ATA (Agricultural Transformation Agenda): The predecessor policy (2011–2015) which reintroduced business-driven agriculture in Nigeria; the APP directly builds on its successes and addresses its shortcomings Demand-Supply Gap: The shortfall between domestic production and consumption for priority crops (e.g. rice: 6.3M vs 2.3M tons; fish: 2.7M vs 0.8M tons) that the APP targets for closure NIRSAL Plc.: Nigeria Incentive-Based Risk Sharing System for Agricultural Lending — the CBN-anchored credit guarantee mechanism that de-risks agricultural finance for commercial banks SCPZ (Staple Crop Processing Zone): Designated agro-industrial zones where federal infrastructure investment and private anchor investors co-locate to drive integrated processing and value-addition for priority crops
Impact & Metrics
Agriculture contributes 23% of Nigeria’s GDP and employs 70% of the labour force — the APP targets sectoral growth of 6%–12% annually to double agricultural household income within 6–12 years Nigeria imports $3–$5 billion worth of food annually (wheat, rice, fish, fruits) — APP prioritises domestic production to eliminate these imports and redirect foreign exchange earnings The ATA (predecessor policy) created over 3.5 million jobs and added 20.1 million incremental tons of domestic food production; the APP is designed to consolidate and expand these gains Agriculture’s share of non-oil export earnings is 75% — the APP targets a measurable increase in agricultural export quality and volume to strengthen Nigeria’s balance of payments
Official Resources
Website: fmard.gov.ng | osgf.gov.ng | nipc.gov.ng Policy Document: The Green Alternative — Agriculture Promotion Policy 2016–2020 — available via FMARD and IFPRI Nigeria Contact: Federal Ministry of Agriculture & Rural Development (FMARD), Area 11, Garki, Abuja, Nigeria Summary prepared using the Policy Summary Template | Source: Agriculture Promotion Policy (APP) 2016–2020, FMARD; IFPRI Nigeria; AGRA Nigeria Operational Plan; Food Security Cluster Nigeria; OSGF | March 2026
Legal Framework
The Green Alternative (Agriculture Promotion Policy 2016–2020) operates under the Federal Ministry of Agriculture mandate, the Land Use Act 1978, and the Agricultural Credit Guarantee Scheme Fund Act. It aligns with the CAADP framework and the Malabo Declaration on Accelerated Agricultural Growth, the Economic Recovery and Growth Plan (ERGP) 2017–2020, and the Sustainable Development Goals (SDG 2 — Zero Hunger). The National Food Security Act provides the food security framework.