Investors’ Investment In Agricultural stocks listed on the Nigerian Exchange (NGX) Limited gained N468.557 billion in 2024.
The sector represents 0.85 per cent of the total NGX market capitalisation, which is N62.763 trillion as at December 31, 2024. There are five companies listed in the agriculture sector on the official list of NGX, they are; FTN Cocoa Processors, Okomu Oil, Presco, Ellah Lakes and Livestocks Feeds.
Agriculture sector capitalisation rose by N468.557 billion, representing a growth of 102.27 per cent to close the year 2024 at N926.696 billion from N468.557 billion at which it opened for the year 2024.
Okomu Oil Palm with a market capitalisation of N423.536 billion and Presco, a market capitalisation of N475.000 billion, are the two dominant stocks in the agriculture sector.
Ellah Lakes, FTN Cocoa Processors and Livestock Feeds recorded a market capitalisation of N8.702 billion, N7.098 billion and N12.360 billion respectively as at December 2024.
The capital market performs many roles that are critical for the growth and development of an economy and with agriculture being the main point of the national transformation agenda, few companies in the sector are listed on the NGX.
The agricultural sector remains the largest employer in Nigeria, employing more than 36 per cent of the labour force. Also, the sector, which accounted for 58.76 per cent of Nigeria’s GDP, grew by 1.14 per cent year-on-year in the third quarter, 2024 from the 1.30 per cent year-on-year growth recorded in Q3, 2023.
Analysts noted that agriculture is an important sector of the economy and one of the real sectors whose growth has multiplier effects on the economy, saying that the sector needs long term funding and can be gotten from the market.
They noted that a vibrant Commodity Exchange will help in boosting listed agricultural companies’ revenue.
A senior broker, Azeez Bello said that listed companies in the Agricultural sector will benefit from patronising an organised commodity through improved market access for their outputs as the commodity exchange trading platforms will facilitate increase in demand and supply.
The president of Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa stated that “in 2024, Nigeria’s agricultural sector recorded steady growth, contributing at its peak of 28.65 per cent to the nation’s GDP, driven by increased production in crops such as maize, rice, and cassava, as well as sustained investment in mechanization and technology adoption.
“However, growth was constrained by challenges such as insecurity in key farming regions, high input costs, and limited access to credit for smallholder farmers. Inflationary pressures also impacted on the affordability of essential inputs, while climate variability affected yields.”
For 2025, Idahosa said “the outlook is cautiously optimistic, with the sector expected to grow tremendously, supported by government initiatives to enhance food security, improve rural infrastructure, and expand agricultural value chains. Strengthening climate resilience and ensuring access to affordable financing will be crucial to unlocking the sector’s full potential and ensuring its pivotal role in Nigeria’s economic diversification agenda.”
Afrinvest Limited in its report ‘Nigeria Economic and Financial Market Review for 2024 and 2025 Outlook’ said that Agriculture sector is positioned for a positive performance in 2025, anchored on the successful completion of strategic investments by major players in 2024 growing domestic and regional demand for output, and the planned intervention by the federal government including tariff waiver on equipment importation.