The Oyo State Government has explained its decision to withdraw from a proposed maize export arrangement with Botswana, saying feasibility studies showed that large-scale exports were not economically viable.

The government said the decision was based on data analysis and was intended to protect farmers from avoidable economic risks.

In a statement issued in Ibadan by the Governor’s Special Adviser on Media, Dr Sulaimon Olanrewaju, the government said the administration of Governor Seyi Makinde had initially explored the bilateral arrangement to guarantee off-take for local farmers and generate foreign exchange.

It said subsequent studies conducted by the Oyo State Agribusiness Development Agency (OYSADA) showed that the state lacked the comparative advantage required to produce maize at the scale and price necessary for sustainable international exports.

The government said the findings prompted the administration to redirect its agricultural strategy towards value chains with stronger commercial prospects, particularly cassava production and processing.

It stressed that the decision did not represent a withdrawal from international agricultural trade, but rather a shift towards opportunities considered more commercially sustainable.

The government also said developments in Nigeria’s maize market, including the Federal Government’s approval of large-scale maize imports, had affected local prices and changed the economic calculations surrounding maize production and export.

According to the statement, Oyo was instead strengthening its agricultural value chains through investments in agribusiness infrastructure, including the Ijaye Agribusiness Industrial Hub, OYSADA and the Fasola Agribusiness Industrial Park.

The government said Fasola was designed to promote private-sector participation, connect farmers with processors and investors, and improve access to markets.

It also cited investments in rural roads, security and other infrastructure as measures aimed at reducing post-harvest losses and improving the profitability of farming.

The state said its early adoption of the African Continental Free Trade Area (AfCFTA) framework had positioned Oyo to pursue wider regional and continental trade opportunities rather than depend on a single bilateral arrangement.

The government maintained that the policy change reflected its approach of using data, competitiveness and market realities to guide agricultural decisions.

It said the broader strategy was aimed at attracting investment, creating jobs, supporting farmers and positioning agriculture as a major driver of economic growth in Oyo State.