







































78 

 

Finance, Accounting and Business Analysis 

Volume 1 Issue 1, 2019 

 

Strategies for The Exploration of Agribusiness Policies and Initiation 

for Poverty Reduction in Nigeria   

 

Umar Farouk Musa1, Musa Umar Adam2   

Faculty of Social and Management Sciences, Bauchi State Gadau-Nigeria1&2 

 

Info Articles   Abstract 

 

History Article: 
Received 2 June 2018 
Accepted  1 December 2018 
Published  29 January 2019 

 Agribusiness innovation has contributed to the economic 

development and industrial capabilities of many countries thereby 

reducing poverty. However, the potentiality of agriculture in Nigeria 

has yielded little output due to political and institutional challenges. 

The cardinal objective of this study is to explore the agribusiness 

policies and initiatives as a strategy to mitigate poverty in the 

Nigerian context. Hence, the study employed qualitative research 

design and collected data from fifteen informants on the strategies to 

reduce poverty in the study area. Accordingly, findings from the 

survey indicated that the National, state, Non-governmental 

organizations, private firms were the main activities applied in 

pushing agribusiness. Conversely, poor political will, financial 

constraints, scarcity of agro-allied industries, marketing difficulties, 

low awareness and enlightenment among the farmers were observed 

as the major challenges of agribusiness initiatives in Bauchi state. 

Yet, the results revealed that agricultural revenue, food security, 

employment opportunities, the involvement of public, private and 

the NGOs in agribusiness shall accelerate the production of animals 

and crops. Therefore, the study proposed for steady political 

commitment from the government through expansion of capital 

resources in addition to public and private collaboration in 

agribusiness. The improvement of infrastructural facilities in the 

state, establishment of marketing boards, and mechanized farming. 

 

 

Keywords :  

Agribusiness, Policies, Poverty 

Reduction, Initiatives, Strategies, 

Bauchi State  

 

  

   

 

 

 

 

 Address Correspondence:   

E-mail : faroukmusa2013@gmail.com1,  

musa.ibn@gmail.com2 

 



Umar and Musa / Finance, Accounting and Business Analisys 

79 

 

Introduction 

Agriculture used to be the main sources of revenue to the government of federal republic of Nigeria 

before the exploration of petroleum in commercial scale. However, the neglect of agriculture led to apparent 

economic predicaments prominent among include massive unemployment, inadequate access to basic 

needs, food scarcity and drastic increase in poverty level. Hence, immediately after the independence various 

policies and programs mainly to boost agriculture production, economic growth and marketing of the 

outputs, but these policies appeared to be interventions projects and involving other financial institutions 

respectively. Categorically, some of the main objectives of these strategies include resource allocation, 

redistribution of income and promote growth as well as development, amid the application of fiscal and 

other monetary instruments. These policies specify the framework and government`s action plan to increase 

food production, raw materials, export crop production, creation of employment opportunities and 

modernization of the agricultural sector for attainment of better living.  

Agricultural policies as contained in the National agricultural policies 1960-1985, includes Research policy, 

agricultural marketing and pricing policy, agricultural extension services policy, agricultural finance and 

credit policy, water resource development policy, agricultural rural development policy and capacity 

building and manpower development policy respectively. Thus, studies have revealed that agribusiness 

activities in the areas land cultivation, poultry, livestock, dairy and fisheries contributed to poverty reduction, 

food security and Gross Domestic Product in many countries such as the United States of America, Brazil, 

China, Canada, Holland, China and Germany among others. Literature juxtaposed that preceding programs 

in agribusiness yielded insignificant results in Nigeria; hence, other attributes such as post harvesting 

activities mainly processing, packaging, storage in addition to distribution and transportation were 

neglected. 

Categorically, poor market and derail support for local industries, storage facilities, inadequate 

infrastructure, unsteady input and product prices. The peasant nature of farming, low productivity and poor 

technological adoption bedevilled agribusiness in Bauchi state and the country at large (Haruna, Sani, 

Danwanka, & Adejo, 2012; Olukunle, 2013). The vice president of Nigeria declared that over 110 million 

Nigerians are poor (Nwabughiogu, 2015). A survey on food poverty indicated 50.23 percent and 

vulnerability to food poverty stipulated 61.68 percent in the federal republic of Nigeria. The study 

recommended for policies and programs that will drastically mitigate food poverty in the country (Ozughalu, 

2016). Similarly,  reports on multidimensional poverty indicators across health, education and living 

standard  proved that the Bauchi state has 89.5 percent indicators (Alkire, Roche, Seth & Sumner, 2015). 

Again, the selection of the study area was based on the report by the Oxford Department of International 

Development which further proclaimed that Bauchi State is the poorest among ten identified states in 

Nigeria (OHDI, 2014; Suleiman & Karim, 2015; Musa, Abdullah & Wahid, 2016). It is based on this 

background that this study infers to explore agribusiness strategies to mitigate poverty in the study area. The 

study is premised by two research questions; (i) What are the agribusiness policies and initiatives to alleviates 

poverty? (ii) How effective are these policies and initiatives on poverty reduction. Furthermore, the stated 

objectives include (i) to explore the agribusiness potentials in the study area. (ii) To examine the effectiveness 

of agribusiness for poverty reduction. The paper encompasses an introduction, research questions and 

objectives. A qualitative research approach and thematic technique of data analysis. Thus, related literature 

was reviewed, and innovation theoretical framework was adopted. The results were discussed based on the 

findings of prior researches, the recommendations and conclusion as well as references was presented 

respectively.   

 

Methodology 

This study utilized the qualitative research method; non-probability sampling design and semi- 

structured interview. We collected the data from the fifteen informants via  purposive sampling from the 

Ministries of cooperatives, agriculture, social welfare and Bauchi state commission for women, youth 

rehabilitation and development. While some selected farmers were equally interviewed via snowballing 

sampling technique. The population of  this study comprises of the policy makers, stakeholders and 

beneficiaries of the Bauchi state agricultural scheme, empowerment and poverty alleviation programs. 

During the interview session, the informants were given 15-20 minutes on each question captured on the 

interview protocols (see the interview protocols, below). The data were recorded meticulously while  field 

notes. A transcription for better organization of the data. Consequently, a thematic analysis was applied in 

which the research questions were answered based on the themes and facilitated the achievement of the 

stated objectives. 

 



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Interview Protocols 

What are the agribusiness policies in the state? 

List the impediments to agribusiness policies. 

How are these programs implemented. 

What are the achievements of these policies?  

Can you suggest the strategies to expand agribusiness in the state. 

 

Literature Review 

This section of the study discussed types of agribusiness, development and other studies carried out 

on the phenomenon under study. Agribusiness scheme, first appeared in the works Golberg and Davis in 

1957, it implies joint business activities that took effect from farming to the sale of products. In other  words, 

agribusiness is the collection of enterprises which includes diverse farming activities such as Agri-chemicals, 

production and breeding of seeds, crops, supply of farm machineries, processing, distribution as well as retail 

services and marketing of the products (Goldberg & Davis, 1957). In other words, it is a composition of 

supply of agricultural inputs the farm implements, products and modification of agricultural outputs and 

distribution to the final consumers. Based on these notions, agribusiness appeared to a foremost sources of 

employment and income  generation across the globe. It is often characterized as businesses that covers 

marketing of farm output, the wholesalers, processors, retailers and other middlemen operators. 

Agribusiness is also typified by production, distribution, retailing, franchising while professional and 

financial services are carried out respectively (Haggblade et al, 2015).  

Basically, agribusiness is characterized by three major substructures the farm productions, 

distribution and marketing of the products (Tersoo, 2014). Studies have indicated that most of the products 

and raw materials being processed are perishable; fragile and can be better managed by people with 

distinctive  business abilities. The governments, at various level  the central, states and regional authorities; 

or local governments have put strict regulations to ensure consumer safety and environmental protection 

measures. To these effects, divergent stakeholders such as producers, wholesalers, transporters and  retailers 

across different gender are involved in agribusiness activities and in order eliminate hunger and poverty. 

Agribusiness organizations are categorized into sole proprietorship, partnership, cooperative society, joint 

stock company, both private/public and state-owned enterprises respectively. 

The development of agricultural policies in Nigeria took progression of stages aimed at boosting 

food security, income generation and general agricultural infrastructure. The programs include those within 

regions, states and national projects. For instance, the Farm Settlement Scheme (FSS); was introduced in 

the then Western region in 1960, Eastern region in 1962, Midwestern region in 1964 respectively. The 

national outlook started in 1972, with the introduction of the National Accelerated Food Production Project 

(NAFPP); Operation Feed the Nation (OFR); 1976, River Basin Development Authorities (RBDA); 1976, 

Green Revolution (GR); 1980, Agricultural Development Projects (ADP); was later launched in 1975 across 

some states. The Directorate for Food Road Rural Infrastructure (DFFRI); took effect in 1986, the National 

Fadama Development Project was later inaugurated in 1990 in twelve states of Bauchi, Adamawa, Gombe, 

Niger, Lagos, Oyo and Federal Capital Territory, Abuja. In the year 1999, the National Economic 

Empowerment and Development strategies (NEEDS); was launched, National, Specialized Program on 

Food Security, 2002   and other states project respectively (Ani, 2013; Ekpo and Olaniyi, 1995; Iwuchukwu 

and Igbokwe, 2012). Literature indicated that these programs were bedeviled with inadequate collaboration 

between the public and private stakeholders, weak strategies, narrow focus, targets and specific objectives. 

Embezzlement, poor monitoring, evaluation and political interference (Iwuchukwu and Igbokwe, 2012).  

Nwibo and Okorie (2013) conducted a survey on the constraints to entrepreneurship and investment 

decision by agribusiness stakeholders in the south-eastern, Nigeria using mixed method research design. The 

results reveal that social, economic and institutional barriers such as inadequate capital and low access to 

formal loan schemes, poor market information, poor infrastructure and multiple taxation are major 

constraints to the agribusiness. The survey recommended for an increased access to credit facilities to the 

agribusiness entrepreneurs and market research initiatives respectively. Pawa  and Tersoo 2013, discovered 

that agribusiness initiatives are capable of generating employment, revenue and poverty reduction. But poor 

policy articulation, inadequate capital, derailed infrastructure upset agribusiness in Nigeria. 

Singh, Nain and Sharma, (2016) conducted a survey on the development of Agri- entrepreneurship 

for sustainable farming income and discovered that food processing and value addition are an integral part 

of agriculture, thus, contributed to the socioeconomic development of India, but huge potential has been 

underutilized. This led to neglect of large opportunities that will develop the sector. The study suggested for 

improvement of strategies for the processing equipment, provision of infrastructure, capacity building, 



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business interventions and effective marketing linkages to the consumers to tackle poverty and rural 

unemployment concurrently. 

Studies have acknowledged that agribusiness initiative is a leading instrument for the development 

of economic and mainspring for poverty reduction (Ezeokeke, Anyanwu, & Okoro, 2012).  For instance, 

the results of  survey carried out on agribusiness in New Zealand indicated a significant output in the 

production of dairy from 59000 as at 1994; 155000 by 2002 and 266000 in 2010 respectively. The results 

further proof that land use contributed to 204, among farmers. The findings contributed to the development 

of high farm harvest and increased raw materials for agro-allied industries. These further influences 

agribusiness and later translated into poverty reduction to the farmers. (Copland & Stevens, 2012). 

Ogidi, 2016 studied agribusiness for economic development in Nigeria and discovered that before 

the exploration of petroleum in commercial quantities, agricultural products such as groundnut, cocoa, 

cotton and cassava were the major sources of revenue and export in the country. These products were 

processed into different bye products. However, political, legal constraints, poor collaboration and economic 

factor such as interest rates, exchange rates, and unemployment crippled these developments. Hence the 

product faces market difficulties in the international business. 

A study conducted on the cooperative agribusiness in Greece indicated that market orientation, 

brand orientation is the crucial approaches required in the development of the sector. Many cooperatives 

have experienced organizational and strategic changes which lead to the expansion of markets. Therefore, 

cooperative agribusiness yielded positive results and higher output in the country (Benos, Kalogeras, 

Verhees, Sergaki, & Pennings, 2016). 

In a study on agribusiness innovation between Thailand and Nigeria; Ademola, Adenle, Louise and 

Hossein, (2016) compares the cassava potentials of the two countries and established that agribusiness 

potentials are under-exploited in Africa and Nigeria based on the apparent challenges related to political 

instability, lack of reliable financial system, poor economic infrastructure, inadequate technological 

readiness, land tenure practice, weak institutional infrastructure, lack of access to essential inputs for food 

testing, packaging and processing. Findings indicated that Asian and  Thailand agribusiness recorded 

success as results of innovative business in Agro-industrial policy of 1958, strategic marketing, vertical 

integration, technical, human resource and managerial. The country invested in capacity building for 

cassava production. The study recommended for promotion of institutional support, Agro-industrial policy, 

infrastructure development and establishment of strategic marketing. Based on these gaps established in the 

literature, this study was carried in the state of Bauchi, federal republic of Nigeria to explore agribusiness 

policies and potentials. 

Theoretical Framework 

Innovation theory is used in the context of this study in order to explore agribusiness and the 

precious need to revolutionize, modernized and transform agricultural products into competitive and 

business oriented as well as novelty so as to reduce poverty in the study area. Innovation theory first appeared 

in the works of Joseph A Schumpeter in 1934. The theory stated that innovation is the crucial dimension 

related to economic transformation. He postulated that economic change spin around innovation and 

entrepreneurial accomplishments in addition to market power. Innovation-originated market driven 

activities provides improved and better results. These will further lead to product characterization, marketing 

research, skills and development; financial capability and internationalization of products (Binnui, & 

Cowling, 2016). Innovation theory was previously applied in management, information and communication 

technology (Misuraca and Viscusi, 2015); law (Boyle, 1992); agriculture (Sumberg, 2005); entrepreneurship 

(Goldsmith, 1991); economics (Hall, 1994; Stiglitz, 2015); public procurement (Edquist and Hommen, 2000)  

and other related disciplines. In the context of this study, innovation entails improvement, modernization, 

revolution, novelty, advancement and transformation of agribusiness potentials in the study area for 

competitiveness, desirability of various products for consumption and tackle the under utilization of the 

agricultural resources respectively. Furthermore, in order to push and achieve the objectives of this study; 

innovation theory is employed to among other things ensure increased production of agricultural produce, 

processing of fruits and vegetables into cans, process maize for flour, starch and other feeds. Processing  and 

changing of livestock, birds; diary products and many other farm produce to mitigate poverty. An 

improvement  of infrastructure shall accelerates the preservation, storage and warehousing, transport 

services, Agri-clinics and other service centers. These developments will equally enhanced trading in the 

aspect of retailing, farming contracts, supply chain management. Other aspects of capacity building and 

human resource development in agribusiness. Consequently, the creation of new products, market, sources 



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of raw materials and general organization of small and micro scale enterprises besides the  employment 

opportunities (Acharya, 2007; Haggblade et al, 2015).  

Results 

The results of this study were analysed based on the structured interview protocols on the existing 

policies on agribusiness, challenges of the programs, achievements and strategies to expand agribusiness in 

the study area. These were later discussed and corroborated by previous studies and answered the research 

questions and accomplished the stated objectives. 

The Agribusiness Policies in the State 

The informants attested that agribusiness policies in the state are commonly categorized into 

National, state, NGOs and private operators. 

National policies: include all programs initiated by the federal government of Nigeria on the development of 

agribusiness in the state recently, such as Fadama Development Projects which collaborated with the state 

government projects in boosting modern and irrigation farming, processing and marketing of the products like 

rice, wheat and other perishable products (Informant four). 

Informant three, maintained:  

That the federal government of Nigeria had established many programs such Operation Feed the Nation, Green 

Revolution, Directorate Food Road and Rural Infrastructure, National Fadama Development Project Phase I, 

II and III. These programs were established to guarantee improved farming inputs both raining and dry season 

using modern techniques, irrigation and ensure food security across the thirty-six states of Nigeria (Informant 

six).   

State policies: These are the programs which cover all aspects of agriculture and agribusiness activities carried 

out by the state government through the Ministries, Agencies and Local Governments. The ministry of 

agriculture and water resources, facilitated these projects through the delivery of modern farming techniques; 

training and capacity building across the twenty local governments in the state (Informant five). 

The Bauchi State Agricultural Development Programs (BSADP); have offices in the three senatorial zones and 

the local governments. The project is designed to smoothen the process of all aspects of farming activities, 

information dissemination, supply of farm implements and equipment. It also coordinates all agricultural 

schemes in the state. (Informant ten). 

“The Bauchi state government has established fertilizer blending company and sale to the farmers. The 

Bauchi meat factory is a state government owned company which processed meat and distributed to the 

market for sale” 

NGOs and private individuals: The Non-governmental organizations such as farmers’ cooperative societies and 

associations accessed loans from the bank of industry, bank of agriculture in the state. The private individual 

farmers and businessmen partake in other activities, namely, the processing and product management, typically 

among include groundnut, rice and soybeans, beans, sesame in addition to the improvement of various products. 

Other activities of the private operators include assorted milk drinks and locally processed meat et cetera 

(Informant seven). 

The Impediments to Agribusiness in Bauchi State 

For the purposes of this study, the challenges of agribusiness are classified into political, financial, 

shortage of agro-allied industries, marketing difficulties and low awareness and enlightenment for the 

farmers. 

Political impediments, these include poor laudable policies on agribusiness, inadequacy of modern farm 

equipment and implements for mechanized and commercial farming. Other farm inputs like improved breeds of 

seeds, fertilizers, pesticides and insecticides are grossly insufficient for the farmers in the state. Most of our farmers 

are in rural areas and faces difficulty due to deplorable infrastructures such as roads, electricity, water for 

irrigation and veterinary centers. These circumstances led to the lost farm products (Informant eleven).  

“I discovered that there is inadequate involvement of the local farmers during the commencement and the 

implementation of the projects. Farmers are ordinarily expected to be part of the decision makers on 

programs that affect them”  



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Financial difficulty, most farmers in the state are subsistence and therefore find it very difficult to access soft 

loans from the banks of industry, agriculture and other financial institutions. The farmers had feeble resources 

to acquire farm machineries. These affected high farm production as well as distribution of these products. 

Sometimes the farmers mismanaged and misapplied the resources meant for agribusiness (Informant twelve). 

Pitiable agro-allied industries: There are shortages of agro-allied industries in the state, which led to the damages 

and under-utilization most of the products such as tomatoes, fruits, groundnut, soybeans. The only existing meat 

factory owned by the state government is incapacitated to cater for numbers of beef products in the state 

(Informant thirteen). 

Marketing hitch: Even though, farm produce is currently on sale, the local products have low market, due to 

poor processing methods. Perishable got spoiled as results of low patronage and these affected future productions. 

For instance, tomatoes, pepper and other unprocessed products blemished. There are scanty marketing boards 

not only in the state, but the country at large (Informant fourteen). 

“Stumpy awareness and enlightenment: farmers and agro-allied businessmen in the state have insufficient 

technical skills, initiatives and modern agribusiness creativity as well as knowledge. Hence, they had little 

information on the modern techniques” 

Implementation of the Programs  

Implementation refers to the process of executing projects related to agribusiness through the 

various implementation mechanisms such as National programs, state ministries, agencies, companies and 

NGOs respectively. Informant One, said that: 

The state hosted national agricultural programs such as Fadama farming project, phase I, II and III respectively. 

The Bank of industry, Bank of agriculture gives some financial package in the form of soft loans to farmers and 

entrepreneurs alike. The Fadama projects trained farmers on irrigation and the processing of farm products such 

as rice, wheat, groundnut and other vegetables. Locally processed products were on sale in their shops in Bauchi, 

the state capital and other locations across the state (Informant six). 

The ministries, agencies and state owned companies: The ministry of finance makes the disbursement of funds 

while agricultural ministry supply via its departments such as Bauchi State Agricultural Development Program 

(BSADP); the established farming zones across the three senatorial zones and the twenty local governments; 

farmers were given farm implements through the tractors hiring units, animals, local implements, insecticides 

and pesticides. The state Agricultural Supply Company supplies improved seeds, farm implements ready for sale 

to the farmers. The fertilizer blending company and meat factory executed projects related to processing of meat 

and manufacturing of fertilizers (Informant five).  

The role of extension workers and media stations. The media houses in the state, Bauchi Radio Corporation 

and television station enlightens the farmers via the programs (AKOMA GONA); meaning people should 

embrace farming in terms of plantation; cattle rearing and birds. While extension workers give practical training 

on the modern agricultural skills (Informant two). 

Non-governmental organizations and private companies: Agriculture research projects such as (SASAKAWA 

farming projects), equally assisted farmers with technical skills and capacity building to improve agribusiness 

activities in the state. Similarly, Private companies such as Sankache farms, Vital Feeds, Animal care and other 

NGOs sometimes do collaborate with the government on the development of agribusiness via the supply of 

products, processing as well as distribution in the state (informant fifteen).  

Achievements of the Programs in the State  

Despite the challenges of agribusiness strategies in the state, the informants uphold that the venture 

yielded some remarkable success, such as creation of job opportunities, the unemployed have secured 

employment via the public projects, the NGOs and other private practitioners. Nearly 70 percent of the 

people are employed in the farming, processing, distribution and marketing of agricultural products in the 

state. 

Utilization of the agricultural potentials in the state: The involvement of public, private and the NGOs in 

agribusiness has accelerated the production of animals and crops. Irrigation alone had exposed most farmers on 

the need to harness our abundant resources such as rice, sesame, maize, cotton, beans, soybeans, guinea corn, 

millet, groundnut, wheat and vegetables. The processing firms have explored production, processing and 

distribution of products to the market (Informant five). 



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Increased food security and production: The state is harvesting crops during the dry and raining season, thereby 

making the products available for sale. For instance, Fadama phase I, II and III had boosted the production, 

processing in addition to marketing of rice, wheat along with other farm products in the state (Informant 

eight). 

Accelerated revenue to the government, NGOs and farmers: Due to the bumper harvest, especially this year, 

many farmers had earned more income and as well the state revenue had increased. This generated income to 

the people via sales in various markets in the villages and other parts of the state (Informant one). 

Decline of crime rate, most of the misconducts and felonies in the study area among the youth have direct links 

with unemployment, therefore, an expansion of agribusiness novelty led to a drastic reduction in offenses in both 

the urban and rural areas in our state (Informant three). 

Strategies for the Expansion Agribusiness in the State 

The informants proposed for vibrant political will on agribusiness, expansion of capital resources, 

public and private collaboration on the business, improvement of infrastructures in the state, establishment 

of marketing boards, and mechanization of agriculture.  

“Vibrant political will on agribusiness: It is therefore imperative for the government to allocate enough 

financial resource, capacity building and all the services required to make agriculture wholesome hence the 

potentialities shall be adequately explored” 

“Expansion of financial support for farmers: The needs for expansion of capital resources through the bank 

of agriculture, industry and micro-finance banks shall augment the existing programs and accelerate 

agribusiness resourcefulness and innovation in the study area”  

Farm credit facilities, the government, commercial and micro-credit schemes institutions should 

provide capital resources to specific aspects of farming so as to increase production and marketing. For 

instance, beans, soybeans, sesame, groundnut, cocoa, cotton and palm kernel” 

Public and private collaboration on the business: partnership between the government and private operators will 

influence food production, poverty reduction and employment generation as the sector could accommodate wide 

areas such cattle rearing, crops and above all processing them for marketing (Informant seven).  

“The establishment of marketing boards: The roles of marketing boards in terms of prices regulations and 

distribution will help the local farmers avoid the risk of seasonal fluctuations and loss of their products” 

“Mechanization of agriculture: The process of large scale farming and commercial production requires 

modern equipment, implements and technical skills. Therefore, I suggested for investment in the modern 

farming to enable our products have comparative advantage” 

Improvement of infrastructures in the state: The need for good road network, electricity supply, construction of 

dams and storage facilities shall ease difficulties faced by the professional farmers especially in the rural areas. 

This will also attract many people into agribusiness (Informant two). 

“Improvement of the farm and land infrastructures, these include allocation of farm lands, farm machines, 

technical skills, farm security and up to date farming techniques” 

Establishment of state owned agricultural institutions and training centers. The need to set up capacity building 

and agribusiness institutions shall have influenced farmers’ technical skills, innovations and expansion of the 

business to be result oriented. The institutions shall also influence research and development; the students, 

farmers will be trained, their expertise and competence will be developed.  

 

  



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Discussions 

The study employed a thematic analysis method in the articulation of results and achieved the stated 

objectives. The first research question supposed: what are the agribusiness policies and initiatives that 

alleviate poverty? Agribusiness policies are designed plans of actions of the governments in the study area 

to accelerate agricultural development, employment generation and poverty reduction. The informants 

stipulated that such programs of actions include; the previous and current National Programs such as 

Operation Feed the Nation, OFN; National Fadama Development Projects Phases I, II and III. These 

projects collaborated with the state ministries, agencies; NGOs and individual farmers in boosting 

agricultural activities in the state. Literature attested that Fadama III project had influenced the production 

capacity, employment generation, income and living standard of the benefiting farmers in Niger, Akwa 

Ibom, Enugu, Kogi, Oyo and Taraba states of Nigeria (Idris & Yusof, 2016). The results of this study further 

indicated that projects such as the Bauchi State Agricultural Development Programs (BSADP); have been 

established to provide intervention in all aspects of agriculture. Alongside the state agricultural supply 

company, the meat factory, fertilizer blending corporation were ventures, designed to push agribusiness 

activities in the state. 

NGOs and private individuals, the informants testified that Non-governmental organizations and 

individual farmers, the cooperative societies and associations accessed loans from the bank of industry, bank 

of agriculture in the state. The private individual farmers and businessmen partake in the production and 

processing in addition to management of farm activities typically groundnut, rice, soybeans, beans and 

sesame. Previous studies in Rivers state indicated that six NGOs had accelerated facilitated agricultural 

programs, community development, industrial growth and commercial programs in the state (Enyioko, 

2012). 

Despite the national, state, NGOs and private individual projects as well as interventions; the 

informants substantiated some peril challenges affecting agribusiness in the study area such as the inadequate 

political will, financial constraints, scarcity of agro-allied industries, marketing difficulties and low 

awareness and enlightenment among the farmers. Previous researches indicated that inadequate capital, 

poor managerial training, declining market for local products, unsatisfactory agro-based industries, 

infrastructures and multiple taxes are some of factors confronting agribusiness in the federal republic of 

Nigeria (Nwibo & Okorie, 2013; Igbokwuwe, Essien & Agunnanah, 2015). A study in Malaysia 

corroborated that weak political will, scanty research, inadequate capital, limited market and low level of 

skills and knowledge sluggish straw agribusiness in the country (Zainol, Davies, Rose, Jabil, Mazdi, Wan 

Toren & Rosmawati, 2015).  

The interview session enables us to examine the implementation strategies of the agribusiness 

schemes, the results showcases that Bauchi state accommodated the National Fadama Development project, 

phases I, II, III and other National projects respectively. The Bank of industry, the Bank of agriculture which 

facilitated the disbursement of capital and capacity building. The Fadama projects trained farmers on 

irrigation and the processing of farm products such as rice, wheat, groundnut and other vegetables. The 

Nigerian Agricultural Credit Guarantee Scheme (ACGS); had increased funding of agriculture by sixty 

percent in the country (Okorie, 1988). A study in Gwagwalada, Abuja, Nigeria confirmed the results of this 

study that farmers accessed formal and informal financial interventions. The formal institutions include 

agricultural credit schemes (Alabi, Lawal & Chiogor, 2016). Findings from this exploration justified that the 

state ministries, agencies and companies make the disbursement of funds as well as farm inputs via the 

Bauchi State Agricultural Development Program (BSADP). The state Agricultural Supply Company 

supplies improved seeds, farm implements ready for sale to the farmers. The fertilizer blending company 

along with meat factory executed projects related to supply of fertilizer and meat processing. Literature, 

align that regional clusters accelerated the economy of Poland in which agricultural and food processing 

enhances regional business, profits and comparative advantage (Bojar, Bojar & Bojar, 2016). A survey on 

lean approach to food processing SMEs highlighted training and resourcefulness guarantee food safety and 

hygiene (Dora & Gellynck, 2015).   

Furthermore, the extension workers and media stations such as the Bauchi Radio Corporation and 

television stations enlightens the farmers via the programs (AKOMA GONA and NOMA TUSHEN ARZIKI); 

meaning people should embrace farming for empowerment. At the same time extension workers give 

practical training on the modern agricultural proficiency. Ejiogu-Okereke, Chikaire, Ogueri and Chikezie, 

2016; concurred that radio, television, mobile phones and other information and communication technology 

played crucial roles on information exchange, market, knowledge sharing and monitoring illegal fish 

farming in Rivers state, Nigeria. The media exhibit essential roles in agricultural development through 



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effective communication, promoting extension services, marketing of farm products, educating farmers on 

modern techniques and mobilization of the people in Zimbabwe (Mugwisi, 2015). Non-governmental 

organizations and private companies: Agriculture research projects such as (SASAKAWA farming projects), 

equally assisted farmers with technical skills and capacity building to improve agribusiness activities in the 

state. Similarly, Private companies such as Sankache farms, Vital Feeds, Animal care and other NGOs 

sometimes do collaborate with the government on the development of agribusiness via the supply of 

products, processing as well as distribution in the state. The link between civil society organizations, 

development NGOs and grassroots associations in promoting agriculture development in India indicated a 

remarkable achievement via the government, donor agencies, activist networks, rural elites and poor 

(Brown, 2016). An empirical study in Malaysia and Indonesia juxtaposed that palm oil industries had 

contributed to the economic development and push agricultural services; thereby increasing the processing 

of the products with over seventy percent export in the two countries (Jaafar, Salleh, & Manaf, 2015).  

Answering the second research question which explored the effectiveness of agribusiness policies 

and initiatives to reduce poverty. Literature, supposed that agribusiness policies in Brazil contributed to 

higher foreign exchange, balance of trade and national employment. The results thus, confirmed in concrete 

terms the strong linkage between agricultural, livestock, services, industry and other sectors of the economy. 

These advancements imply its significance to the Brazilian economic development policies (Rodrigues 

Moreira, Kureski, & Pereira da Veiga, 2016). The results of this study supported and uphold solidly that 

agribusiness led to the creation of jobs via the public projects; the NGOs and other private practitioners. 

Nearly seventy percent of the people are employed in the farming, processing, distribution and marketing of 

agricultural products in the state. The informants firmly expressed that agribusiness policies had improved 

the utilization of agricultural potentials in the study area through the processing of farm products; cattle, 

distribution and marketing. The venture concurrently boosted food security, processing as well as production 

of variety of packaged pastries. We realized accelerated revenue to the government, NGOs and individual 

practitioners alike. A reduction of crimes and wrongdoings was also witnessed in Bauchi state.  

The literature suggested that Agro-entrepreneurship had played key roles in the socioeconomic 

development of India via the creation of employment, increased national income, control rural urban 

migration and supported Agro-allied industrial development. The study uncovered farm level production, 

services, inputs producers, processing and marketing (Uplaonkar & Biradar, 2015).  

In order to achieve the stated objectives, we examined the strategies required to boost agribusiness 

in the study area. The informants proposed for vivacious political will, increased capital resources, public 

and private collaboration on the business, expansion of infrastructures in the state, establishment of 

marketing boards, and mechanized agriculture. Studies in Latin America indicated the involvement of the 

government and private sector in developing strategic instruments and programs at the micro level. The 

public sector initiated plans for industrial development, innovation, investment, education, science and 

technology. Industrial policies were applied and transform the economy, which further enhances sustainable 

growth. The Chez republic for instance, introduces economic policy, human resources development, public 

administration and public services, thereby revitalizing the state (Fernández-Arias, Sabel, Stein & Trejos, 

2016). A study in Manipur state of India ascertained that financial capital rendered a significant role in 

influencing entrepreneurial action and strategic decisions of rural women in the country. It also indicated 

the interrelationship between human, institutional and social capital for their development and poverty 

reduction (Kungwansupaphan, Kungwansupaphan Leihaothabam & Leihaothabam, 2016).Capital 

resource is the backbone of agribusiness and meaningful economic development, therefore disbursement of 

funds shall accelerate the production as well as expansion of the sector. 

 A study in Canada, further attested that financing businesses should be the focal interest of policy 

makers, academics, business owners and practitioners. Availability of capital buttress entrepreneurial 

capability, practicability, commercial innovations and wealth creation, thereby mitigating paucity of 

resources (Orse, Riding & Manley, 2006). The expansion of infrastructures in the state, establishment of 

marketing boards, and mechanized agriculture. Previous study in Burma, indicated that infrastructure, the 

road, rail, electricity, telecommunications and other utilities have direct connections to effectiveness of 

governance, societal cohesion, employment and economic growth (Walsh & Amponstira, 2013). A study in 

South Korea indicated that agricultural infrastructure such as farm roads, water development, farmland 

improvement, irrigation and drainage systems in Yeongsan project led to an increase in agricultural 

productivity, environmental friendly farmland, regional income growth, transportation systems and cash 

crop production (Im, Lee, Lee & Kim, 2016). Prior researches have associated that the British Empire 

marketing Board established in 1926; proved that trade stimulations, satisfaction of the colonial agricultural 

and industrial products. Thus, promoted free trade, isolationism and preferences (Kothari, 2014). A study 



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on the comparative advantage of the marketing board of cocoa in Ghana and Nigeria reveals significant 

impact on production during the marketing board era in the two countries devoid of exploitative tendencies 

(Ayinde, 2014). Agricultural mechanization in Brazil, Canada and United States has significantly resharpen 

crops and animal production for a longer time. The innovation of mechanized farming such as tractors, zero 

tillage technology, rice, citrus, vegetable, cotton, sugarcane, potatoes mechanizations and milking 

equipments had improved farming size and agricultural productivity (Spera, Mustard & Vanwey, 2014; 

Schmitz & Moss, 2016).  

 

Conclusion and Recommendations 

The study explored agribusiness policies as strategies for poverty reduction in Bauchi state, Nigeria. 

A qualitative methodological paradigm was applied using semi-structured interview and the results were 

thematically analyzed. The main objectives of this study are to discover the agribusiness potentials in the 

study area as well as to examine the effectiveness and initiatives to mitigate poverty. Findings divulge in 

concrete terms that agribusiness policies in the state are usually categorized into National, state, NGOs and 

private operators, activities for instance; the National policies include all projects initiated by the federal 

government and implemented the various states such as The Operation Feed the Nation, Directorate for 

Food Road and Rural Infrastructure and National Fadama Development Projects Phases I, II and III 

respectively. The state policies covered all agribusiness schemes executed by the ministries, agencies; local 

governments in the study area and the state-owned companies such as the Bauchi State Agricultural 

Development Programs (BSADP); fertilizer blending corporation, the meat processing factory and 

agricultural supply company. I realized the contributions of NGOs, and private firms and individuals in 

accessing financial resources and agribusiness exercises in the study area. The results as well, stipulated that 

agribusiness is impeded by frail political will, inadequate financial resources, poor Agro-allied industries, 

marketing hitch, unsatisfactory extension services and denial of the local farmers’ views and suggestions in 

relations to decisions.  

Findings from the study shows that the implementation mechanisms of these projects were carried 

out by the federal establishments, state ministries, companies, agencies, the NGOs, the media houses and 

other stakeholders respectively. However, we discovered the utilization of agribusiness potentials in the areas 

of employment generation, improved food security and production in the state. Part of the success story of 

this study is the growth of revenue and income by the government and farmers. This implies other 

socioeconomic benefit related to felonies and crimes had depreciated, meaning if the venture is well explored 

much shall be achieved.  

The informant boldly advised and indicated the need for policy makers to accord priority to 

agribusiness through the mechanization of agriculture to attend high production, expansion of capital 

resources, improvement of infrastructure, and establishment of reliable marketing boards. A specific credit 

facilities and outright commercialization of some export products such as cotton, cocoa, sesame a s well as 

groundnut. The need for strong collaboration and memorandum of understanding between the public and 

private sector were articulated as the practical strategies for the expansion agribusiness in the study area. 

Mechanized agriculture is the modern innovation and it yielded remarkable success in the United States, 

Canada and Holland. Other fascinating line of action, the establishment of state owned agricultural 

institutions and training centers. Agricultural projects required training and capacity building so as to 

harness the diverse fields, seed supply, crop production, animals breeding, farming machinery, Agri-

chemicals, processing, distribution and marketing of the products. The study has paved a way for adequate 

utilization of agribusiness facility and added credence to the body of literature in policy studies. I, therefore, 

recommended for the provision of adequate capital resources through agricultural multi-channels credit 

schemes, establishment of farm centers across the twenty local areas in the state and agro-allied industries 

in each of the three senatorial zones.  

The need to revisit agricultural shows to exhibit farmer’s talents, appreciate their efforts and reward 

those with outstanding products shall be imperative. Provision of infrastructure such as electricity, good road 

network, water facilities such as dams, borehole for irrigation deserves urgent attention. The introduction of 

agricultural insurance policy to cover and carry the risk that may occur in the process of production, 

processing, distribution and marketing of the commodities. This study is limited within its scope, hence 

poverty indices and agribusiness potentials of other states in the country differs and generalization shall be 

limited within the study area. We use non-probability sampling design which is inadequate to cover the 

entire state, thus future research should apply a quantitative design to obtain wider coverage. 



Umar and Musa / Finance, Accounting and Business Analisys 

88 

 

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