When Psaltry International commissioned Africa’s first cassava-based sorbitol factory in Ado-Awaye, Iseyin Local Government Area, it marked more than the opening of another processing plant. It symbolised Oyo State’s growing ambition to move beyond producing raw agricultural commodities to building an agribusiness economy where crops are processed, industries thrive, jobs are created, and farmers earn more from every harvest.
That ambition is no longer confined to policy documents. All over the state, new processing plants, expanding agribusinesses, and targeted government interventions are reshaping how agriculture is practiced and commercialized. Through deliberate investments in agro-processing, mechanization, rural infrastructure, and farmer support, Oyo State is steadily transforming agriculture from a largely subsistence activity into a commercially driven sector that attracts investors and expands opportunities across the agricultural value chain.
Much of this transformation is being coordinated by the Oyo State Agribusiness Development Agency (OYSADA), whose strategy goes beyond increasing food production. The agency is focused on addressing two long-standing gaps in African agriculture: limited value addition and weak market linkages. By promoting agro-processing and connecting farmers with reliable markets, OYSADA is stimulating crop production, creating employment opportunities and giving farmers greater confidence to expand cultivation.
Perhaps the clearest evidence that the strategy is working is the growing confidence of private investors. At a time when some businesses are scaling back operations or relocating from parts of Nigeria because of challenging operating conditions, agribusiness investors are expanding their footprint in Oyo State.
Beyond Psaltry International’s landmark sorbitol factory, Oyo Sugarcane Processors Limited has established Nigeria’s first brown sugar processing facility in Iseyin, while Brent Farms has invested in ethanol production. Niji Agro-Solutions, one of Nigeria’s leading agribusiness companies, is also expanding its operations from Lagos to Ibadan, bringing investments in agricultural equipment fabrication, technology transfer and farmer training.
Together, these investments are creating larger markets for farmers, strengthening local supply chains and reinforcing Oyo State’s reputation as one of Nigeria’s emerging centres for agro-industrial development.
The state’s commitment extends beyond attracting investors. Through the Oyo CARES Project, thousands of farmers have received production support, while OYSADA is using Global Positioning System (GPS) technology to map farmlands across the state, improving planning and agricultural service delivery. In partnership with the University of Delaware, United States, and the Institute of Agricultural Research and Training (IAR&T), the agency is also undertaking statewide soil mapping to promote precision agriculture and improve crop yields through more efficient use of farm inputs.
Speaking during the Omituntun 2.0 inter-ministerial press briefing, the Commissioner for Agriculture and Rural Development, Barr. Olasunkanmi Olaleye, said Governor Seyi Makinde’s agricultural reforms are positioning Oyo as one of Nigeria’s leading agribusiness destinations through sustained investment in infrastructure, mechanisation and human capital.
According to him, the government has established nine Farm Service Centres across the state’s agricultural zones, renovated key agricultural facilities and expanded its Tractorisation Subsidy Programme, enabling more than 2,800 farmers to cultivate over 13,000 acres of farmland in the first half of 2025 alone.
Beyond mechanisation, Olaleye said the administration has invested in rural roads, extension services, veterinary support, improved planting materials, livestock inputs and soft loans for thousands of smallholder farmers. Together, he said, these interventions are improving productivity, strengthening food security and making agriculture more attractive to investors.
While government programmes have accelerated the state’s agricultural transformation, industry stakeholders believe the next phase of growth will depend on maintaining an enabling environment for investment.
For Dr. Mubashir Abdussalam, an agricultural engineer and commercial farmer in Ogbomoso South, the changes are visible on the ground. He acknowledged the progress made but believes more deliberate policies are needed to unlock the sector’s full potential.
“The progress is encouraging, but investors need confidence that government policies will remain consistent. Policy stability assures businesses of making long-term investments,” he said.
He identified security as another priority, stressing that farmers must have safe and uninterrupted access to their farmlands if production is to expand.
According to Dr. Abdussalam, the government should also establish structured produce off-take arrangements that guarantee markets for farmers’ harvests. Such a system, he argued, would protect producers from market gluts, stabilise prices and encourage greater investment in commercial agriculture.
He identified access to affordable finance as one of the biggest constraints facing farmers, noting that many have the capacity to cultivate larger areas but lack the capital to do so. Limited access to quality inputs, mechanisation and modern farming knowledge, he added, continues to reduce productivity.
To bridge these gaps, he advocated concessionary loans, stronger farmer cooperatives and expanded agricultural extension services. He also recommended establishing tractor hiring units in every local government area, allowing smallholder farmers to rent machinery at affordable rates instead of purchasing expensive equipment outright.
Dr. Abdussalam further called for agricultural training centres that would equip young people with practical skills and encourage them to embrace farming as a profitable enterprise. He also urged the government to strengthen produce procurement systems that would guarantee fair prices, reduce post-harvest losses and provide farmers with more stable incomes.
For Dr. Abdussalam, however, the next phase of Oyo State’s agricultural journey will depend on ensuring that farmers benefit as much as investors. “When farmers have access to finance, modern equipment, secure farmlands and reliable markets,” he said, “agriculture will no longer be seen as a means of survival but as a profitable business.”
That, perhaps, is the real promise of Oyo State’s agribusiness drive not simply to produce more food, but to build an agricultural economy that creates jobs, attracts investment, adds value to local produce and delivers lasting prosperity for farming communities across the state.
