Free trade agreements and their effect on the Nigerian agricultural sector: An empirical review

PO, IDISI and BA, ADEAGBO and IM, MADUEKWE and AA, MOHAMMED and OO, STEPHEN-ADAMU (2025) Free trade agreements and their effect on the Nigerian agricultural sector: An empirical review. World Journal of Advanced Research and Reviews, 25 (1). pp. 2335-2345. ISSN 2581-9615

The Nigerian agricultural sector, pivotal to the nation’s economy, faces challenges such as low productivity, limited market access, and structural inefficiencies that hinder its full potential. This empirical review examines the role of Free Trade Agreements (FTAs) in shaping the sector’s growth and competitiveness. FTAs, including the African Continental Free Trade Area (AfCFTA), offer expanded market access, increased agricultural exports, technology transfer, and economic integration opportunities. However, these agreements also present challenges, including competition from cheaper imports, dependency on external supply chains, and loss of government revenue. Empirical evidence highlights mixed outcomes of FTAs on Nigeria’s agriculture. While trade liberalisation has driven increased exports and productivity, domestic farmers face risks of market displacement and unequal benefits due to poor infrastructure, limited access to finance, and inadequate support policies. Insights from other nations reveal that the impacts of FTAs depend on country-specific economic conditions and policy frameworks. To maximise the benefits of FTAs, policy recommendations include implementing protection mechanisms for vulnerable sectors, promoting fair trade standards, enhancing infrastructure, facilitating access to finance, and fostering agricultural industrialisation. Effective FTA implementation and targeted interventions can unlock the sector’s potential, driving sustainable growth and inclusive development.