Even though personal income is shrinking and the national economy has slide into recession, household expenditure has continued to increase. Findings show that household expenditure on food items will stand at ₦33.1 trillion in 2029. This represents a growth of about 45.18% when compared with ₦22.8 trillion spent in the last ten years. MSMEsToday can deduce from National Bureau of Statistics consumption expenditure pattern survey published in 2019.
MSMEs in the agricultural sector and its value chain should therefore take advantage of the opportunity this provides to increase production in all agro based crops knowing that there is market for whatever quantity of crops that can be produced. Households are expected to spend additional of ₦10.3 trillion on food items such as rice, maize, starchy roots, tubers and plantain among other food items listed when compared with ₦22.8 trillion spent in the last ten years as food item is expected to accounts for close to 60% of the household expenditure in 2029.
MSMEsToday had earlier reported that the number MSMEs coming into agriculture would increase by more than 100% in 2021. There will be huge market opportunity for MSMEs investing in agricultural in the cultivation and production of food item such fruits, meat, fish and seafood, rice, maize, starchy roots, tubers and plantain and vegetables among others.
On fruits alone, household expenditure is projected to stand at ₦3.5 trillion in 2029. This represents an increase of 250% when compared with ₦1.0 trillion household expenditures on fruits value chain in the last ten years. Other area of investment for MSMEs in the coming years is poultry and poultry products which is projected to reach about ₦8.5 trillion of the household ₦33.1 trillion expenditures on food item in next ten years. Meat is also projected to account for ₦3.1 trillion household expenditures for the period under review.
Another agricultural produce MSMEs need to invest on in the coming years is fish production and seafood. Our findings reveal that a total of ₦2.7 trillion household expenditures in the next ten years will be on fish production and seafood. This represents an increase of ₦1.4 trillion when compared with ₦1.3 trillion spent by household on fish production and seafood in the last ten years.
On cereals, out of the household expenditure for the period of 2029, rice is to account for ₦2.8 trillion of the household expenditure during the period under review. Presently, in Nigeria rice is one of the major food staples with per capita rice consumption projected to grow by about 2kg in 2029, this means more opportunities await MSMEs in rice cultivation in the next ten years.
All things being equal, agricultural experts, believe that household expenditure on tubers such as cassava, yam among others will further increase in the coming years too. A total of ₦1.8 trillion is projected to be spent by households in the coming years on starchy, tubers and plantain food items.
Experts believe that with the insight on households expenditure in the coming years government should create enabling environment for both agricultural sector and MSMEs to thrive in the coming years by improving in areas such as infrastructure, good policies that support both agricultural sector and MSMEs and give the necessary financial support in term of grants and loans where necessary.