Impact of Controlled Environment Agriculture (CEA) in Nigeria, a Review of the Future of Farming in Africa

Abstract

The study investigates controlled environment agriculture (CEA) in Nigeria focusing on its feasibility, economic benefits, environmental impact, and socio-economic implications. While CEA technologies such as hydroponics, vertical farming, automation, and greenhouse systems offer efficiency and yield improvements, this review highlights the extent to which they can be utilized in solving the food challenges facing the country including food shortages, wasteful use of land, and climatic disturbances in agriculture. However, their adoption faces challenges like high initial costs, technical knowledge gaps, and unstable energy infrastructure. Additionally, there is a lack of localized research on resource utilization, crop profitability, and the scalability of these systems in Nigeria’s urban and rural contexts, which further hinders adoption. Government policy reforms, renewable energy access, and capacity-building programs are crucial to overcoming these barriers. Localized pilot projects and field studies are also necessary to validate the feasibility of CEA systems under Nigeria’s unique socio-economic and climatic conditions. Cross-country comparisons with South Africa and Kenya reveal actionable insights for Nigeria’s CEA implementation such as South Africa’s public-private partnerships and Kenya’s solar-powered vertical farms which can serve as actionable blueprints for Nigeria’s CEA adoption and expansion. Nigeria with its teeming population is food import-dependent, with agricultural imports reaching 3.35 trillion Naira between 2019 and 2023. This is unsustainable and requires alternative measures including targeted CEA interventions to increase its agricultural productivity. Overall, for CEA to contribute meaningfully to the Nigerian agricultural sector, specific changes including targeted subsidies, policy reforms, renewable energy access, stakeholder engagement, capacity-building programs, and infrastructure development must be instituted to achieve sustainable agricultural growth. Furthermore, strategies such as hybridizing traditional and CEA practices and creating “pay-as-you-grow” financial models for CEA infrastructure can make the transition more viable for smallholder farmers, who dominate Nigeria’s agricultural sector.

1. Introduction

The agricultural industry is standing at a crossroads and faces immense challenges in the areas of production efficiency, pollution, and progressive working conditions. These are compounded by the challenge of the growing population globally and the impacts of climate change and economic limitations. Nigeria in West Africa has a teeming population and suffers from limited agricultural productivity [1]. The country relies heavily on the importation of food, which greatly affects the country’s economy and exposes it to shocks in the international market [2]. However, conventional agriculture has acted as a source of pollution and deterioration of factors of production. For instance, soil, water, vegetation cover, and water resources all pose a great threat to the ability of the country to feed its population through agricultural productivity [3]. There is a dire demand for new approaches to agriculture these days, which is why controlled environment agriculture (CEA) can be the answer. While it will not fully replace traditional agriculture, there is a real need for these types of systems close to cities. CEA includes different technologies that can be used for growing plants in a controlled environment. Possible techniques in CEA include greenhouses, hydroponics, aeroponics, and vertical farming. These methods possess some advantages over traditional farming in terms of the following requirements: water and nutrients, space, and production cycle, respectively [4]. In Nigeria, in particular, land for cultivation has become a scarce commodity especially in urban areas, and water resources are under pressure; CEA could be the solution to the food security problem in the country. Additionally, the integration of CEA with renewable sources of energy, including solar and wind energy, can help to achieve a lower carbon footprint in the agricultural systems and contribute to the international fight against climate change [5]. CEA has the potential to enhance the sustainability of food systems by optimizing resource use, minimizing waste, and enhancing crop yields. Interestingly, the emerging landscape of CEA research remains underexplored and despite advancements in technologies like greenhouses, vertical farming, hydroponics, and automation, there is still limited understanding of the broader impacts of CEA on food systems, particularly regarding economic viability, social acceptance, and long-term sustainability [6].

Presently, CEA systems have received much commercial and urban attention in the growth of food in closed structures [7]. This is given the current world food insecurity problems, the unprecedented usage of fossil fuels, environmental pollution, pollution of some of the few water basins, and new, complex, and adverse weather patterns. The structure of CEA systems in the West African region, especially Nigeria is ever-evolving. CEA has the potential to address the challenges facing agriculture in African nations including loss of soil fertility, climate change and variability, food insecurity, water rationing, spoilage during storage, and inadequate market outlets [8]. Therefore, there is an urgent need for reforms and policies to address this and capital injection to foster agricultural enhancements, directly or indirectly within the nations of sub-Saharan Africa [8].

As highlighted previously, Nigeria’s agriculture sector is faced with diverse challenges including urbanization, with the urban population reaching approximately 52% of the total population in 2023 [9]. One of the consequences of urbanization is the reduction of the size of the farmlands through which food is produced, thus causing food insecurity [10]. Another challenge is the increase in temperature nationwide, with the average temperature in the country having risen slightly by 1 °C and globally from the 1970s by less than 2 °C. This is compounded by the inter-annual variability in rainfall which has adversely impacted crop production through massive destruction due to cycles of droughts and floods [11,12]. Overall, Nigeria is not food-sufficient, with the estimated total crop production in the country at about 152 million tons as outlined in Figure 1.

In addition to natural and environmental constraints to food production in Nigeria, other threats limiting agricultural productivity are associated with the importation of food items and this includes the threat it poses to the country’s monetary system and the vulnerability the country faces to swings in the world markets. In 2021, Nigeria imported almost nine billion dollars’ worth of food, including fish and cereals which made up a majority of the imports, estimated at about $3 billion USD [14]. Conventional methods of agriculture are acknowledged to generate low yields and are also recognized to entail waste. Maize and cassava yields per unit area of the major staple crops currently remain low and below world standards in Nigeria, while inefficiencies result in high post-harvest losses and low productivity [4]. Given the challenges in Nigeria’s agricultural sector, there is a need for more efficient and sustainable farming methods, such as CEA, that maximize production, use fewer resources, save energy, and withstand natural disasters, pests, and diseases [5].

2. Overview of Controlled Environment Agriculture (CEA)

Controlled Environment Agriculture (CEA) is an intensive, technology-based form of agriculture which employs novel approaches for improved yields by providing optimal growing conditions independent of outdoor elements. CEA encompasses hydroponics (growing crops in nutrient-rich water without the use of soil) [15], aeroponics (growing plants in air or mist conditions with minimal water usage) [16], greenhouses (structures that regulate environmental factors like temperature and humidity to optimize crop growth) [17], and vertical farming (layered growing in controlled atmospheres indoors) [18]. These technologies facilitate the right conditions for growth, hence higher yields and efficiency of the resources than conventional farming techniques. CEA systems recycle water and nutrients in a closed loop, thereby making it a better water usage compared to conventional agricultural practices [19]. This is especially so for many African countries including Nigeria which faces the challenge of water insecurity [20]. The concept of CEA is not at all new, but it has advanced to become one of the most suitable models for addressing the challenges that face traditional farm industries, especially in modern cities where land is scarce, and the weather is unpredictable [21]. They are employed for managing such conditions, which are healthy for the growth of the crop and do not make it easily susceptible to diseases or pests and the weather conditions of the external surroundings [22]. CEA systems range from structures as simple as a shade structure and hoop house to greenhouses and as complex as vertical farms [23]. They apply the maximum interior growing technologies, including hydroponics, aeroponics, aquaponics, and aquaculture, to improve the health of the plants. CEA farms thus differ from traditional farms in that they are usually small-scale, producing a limited number of crops; however, the common crop now is leafy greens and herbs [24]. The methods and formats most frequently utilized for CEA are presented in Figure 2.

The explosion of new growing techniques in CEA has fostered an increasing number of new agribusinesses all over the world. CEA systems centered in the United States and Europe have typically been the focus of earlier research. The global CEA market has grown over the years and is projected to rise further. These countries were the first to implement CEA due to the need to produce food in the winter months. The market is generally categorized into hydroponics (growing plants without soil) which is achieved through feeding plants with mineral nutrients dissolved in water; aeroponics (growing plants in the air) which is usually achieved using stakes and support systems; and aquaponics which is a combination of aquaculture (maintaining aquatic livestock such as fish, prawns, and crayfish in tanks) and hydroponics. These categories/segments are expected to dominate the market and are forecasted to rise from $2.23 billion (2018) to $12.77 billion in 2026 with a compound annual growth rate (CAGR) of 24.6% from 2019 to 2026 [26].

A practical example of CEA is the balanced concept of vertical farming in greenhouses. This is more important in urban areas with limited land that can be used for farming and serving a large population that requires fresh foods. This can be achieved using a glass house or a greenhouse which specifically provides accommodation and a controlled climatic environment for plant growth [27]. Most crops require certain temperatures to grow, and in the greenhouse, the temperature can be adjusted as needed for the crops to be grown therein. For instance, lettuce grows best at 18 °C, while tomatoes are most suitable for growth at 22 °C. A greenhouse allows for the manipulation of the optimal growth temperature and controls other climate factors such as humidity levels which are usually kept high up to 60% to prevent the germination of mold, particularly for vegetables such as greens. Furthermore, LED growth lights are used in the greenhouses to provide light for the plants at variable wavelengths, colors, and intensities to cater to the plants’ light requirements. With the correct setup, plants can receive the correct ratio of light that is essential in the process of photosynthesis, particularly during the cold winter seasons or other periods of low light for growth while other environmental conditions are manipulated to meet the optimal requirements of plants [28]. This technology is most effective with green-leaf vegetables, herbs, selected vegetables, and small fruits including tomatoes or strawberries (Figure 3).

For the seamless integration of CEA into agriculture in Nigeria, directed efforts and research are needed to assess the effectiveness of CEA in the Nigerian agriculture sector, evaluate the feasibility and opportunities of CEA, with a focus on greenhouses and vertical farming, and quantify the implications of CEA systems’ deployment for urban economies. This will help in addressing questions centered around the future of agriculture in Africa, including an understanding of the extent to which CEA is suitable for African countries such as Nigeria in the aspects of urban agriculture, especially greenhouses and vertical farms. Additionally, in what ways and to what extent could CEA systems be economically advantageous, or sustainable in the long run in implementing such systems?

3. Methodology

To conduct a thorough and accurate review, a systematic approach to searching the literature was employed. Three different sources: Google Scholar, Web of Science, and Scopus were used to include a broad range of publications on controlled environment agriculture. A focused search was undertaken using the following keywords: ‘Controlled Environment Agriculture’, ‘Greenhouse’, ‘Vertical Farming’, ‘Rooftop Gardening’, ‘Sustainable Food System’, ‘Sustainable Agriculture’, ‘Hydroponics’, ‘Aquaponics’, ‘Smart Farming’, ‘Trends in Agriculture’, ‘Future of Agriculture’, and ‘Use of Technology in Agriculture’. When searching for topics, Boolean operators such as ‘AND’ and ‘OR’ were employed to either unite or eliminate the terms in a search [30,31,32]. The search was confined to papers in the English language that were published within a 14-year time span between 2010 and 2024 to obtain a clear and more up-to-date picture of the existing trends in the subject area.

3.1. Inclusion Criteria

Studies included in this research are those that focused on using CEA for projects executed in Nigeria or other African countries. Emphasis was placed on research that evaluates CEA application in Nigeria or pilot studies in other African countries. Selected studies were restricted to research articles, reports, or case studies with respect to CEA and sustainable farming. Research articles were mainly extracted from peer-reviewed sources as foundational materials since they present empirical evidence to solve problems and support a solid evidence-reporting framework. Information within selected articles was screened for relevance to the topic. Furthermore, position papers presented by reliable organizations as well as technical research papers focused on the real-world applications of CEA in farming were included as they also offered important perspectives on CEA adoption and application [33]. In addition, to make the gathered information easily understandable and easily distinguished, only articles published in the English language were considered. This language criterion was useful in maintaining the quality of the reviews as language differences make it difficult to understand different findings [34]. Although some articles and other non-English studies may contain useful information, they were left out for practical reasons of review and analysis since most of the works under review are in English.

3.2. Exclusion Criteria

Exclusion criteria were applied to rule out works that are outside the scope of this review. Studies not related to Nigeria or other countries in Africa were excluded. This criterion proved to be very important as it helped the review to be specific to the geographical and cultural area of focus. In this regard, studies conducted in other areas apart from Africa did not touch on the environmental, economic, and social realities of Nigeria and hence, were unlikely to be relevant in reaching the set review goals of this review. Similarly, research papers not related to CEA or sustainable farming methods were excluded. This includes research that may relate to agriculture but does not focus on the impact of Controlled Environment Agriculture or how it contributes to sustainability. During the review, therefore, only topics on how CEA supports sustainable agriculture practices were reviewed while excluding other studies that may relate to agriculture but not to CEA or sustainability. Articles and papers that were not peer-reviewed or studies that were not relevant to the research questions were disregarded. Finally, review articles and articles not in the English language were excluded.

3.3. Research Design

The study employed both quantitative and qualitative methodologies for a comprehensive understanding of the viability of CEA in Nigeria. A mixed-method design was adopted in a bid to capture technical, cost, and socio-economic factors in the assessment of the feasibility of CEA. The research approach employed in this study includes conducting a literature review and case study research. This is followed by an analysis of the existing literature to provide a logical theoretical framework for the study, with a focus on the major areas of CEA in Nigeria and Africa which include water savings, minimum land use, and overall environmental consideration. Emphasis was paid to the use of CEA in countries with climatic conditions close to the Nigerian climate, evaluating the economic and social effects of CEA on food security and agricultural productivity.

Table 1. Summary of Key Themes in CEA Research.

Focus Area	Methodology	Key Findings	Significance	Ref
Water conservation in CEA systems	Empirical analysis of hydroponics and aeroponics	CEA systems use 70–95% less water compared to traditional farming practices.	This Supports the argument that CEA can mitigate Nigeria’s water scarcity issues.	[19]
Nutrient recycling in CEA	Comparative study of traditional vs. CEA	Closed-loop systems reduce nutrient pollution, preventing water body contamination.	This publication highlights the environmental benefits of CEA, aligning with Nigeria’s sustainability goals.	[35]
Carbon footprint of CEA systems	Case studies in urban farming environments	CEA systems powered by renewable energy can significantly reduce carbon emissions.	This demonstrates how renewable energy integration into CEA can aid Nigeria’s drive towards green revolution.	[36]
CEA in African urban environments	Case studies in South Africa	Vertical farming improves land and water efficiency, contributing to higher output.	The South African model provides lessons on how Nigeria can adopt similar approaches to CEA integration.	[37]
Employment opportunities in CEA	Peer review article	CEA systems create technical and non-technical jobs, particularly in urban settings.	This study is relevant for addressing Nigeria’s rural poverty and unemployment issues.	[38]
Gender roles in agriculture	Systematic Literature Review	Gender inequalities restrict women’s access to land, credit, and extension services.	This work is important in highlighting CEA’s social sustainability impact, highlighting gender inclusivity.	[39]
Youth participation in agriculture	Peer review article	Farming is perceived as unattractive by youth, with many migrating to urban areas.	Relevant for engaging Nigeria’s youth in innovative farming practices like CEA.	[40]
CEA and food security	Case studies in urban agriculture	CEA systems can ensure year-round production, reducing reliance on imports.	Supports CEA’s role in stabilizing Nigeria’s food supply and reducing food imports.	[41]

provides some information about recent research output key themes in this research sphere and key findings.

Literature on CEA from South Africa, Kenya, and other African countries is of great importance as it may provide relevant lessons for Nigeria to learn as it implements CEA systems. The social impacts of the CEA, which are important for social sustainability, include the creation of employment and gender impact, while environmental impact focuses on water efficiency, land usage, and energy reliance [37]. The implementation of CEA in Nigeria can enhance agricultural yield, reduce adverse effects on the earth’s climate, and address some of the social issues affecting people in society including youth unemployment and gender imbalance. The literature outlined in Table 1 strongly supports the applicability of the CEA in Nigeria but at the same time, it reveals the issues that may act as a barrier to CEA implementation in Nigeria.

4. The Viability and Potential Advantages of CEA in Nigeria

Having painted a background of CEA, it would be pertinent to examine the current state of agriculture in Nigeria and some of the elements that might affect the consideration of these technologies. Nigeria is rich in its agriculture, and it practices policies on the production of various crops according to the ecological zones [42]. However, the sector mainly depends on small-scale farmers who sometimes are not able to buy or adopt modern machinery [43]. Therefore, the reliance on smallholder farming presents both a challenge and a potential for CEA adoption. On the other side, the implementation and implementation costs of CEA systems might equally be costlier than the potential yields for small-scale farmers. On the other hand, CEA could have allowed these farmers to be productive and earn more, especially in areas where space is a major concern as is the case with many urban areas.

The advantage of CEA is that it has the potential to enhance the production of food crops. Climate-controlled environmentally contained “microclimates” of CEA imply that food can be grown all year round and the foods are protected from external factors such as bacterial invasion. Furthermore, the potential benefits in terms of yield, sustainable cost, and efficiency, and the effects on the ecosystem are massive. With CEA, farms utilize substantially less energy machinery, pesticides, herbicides, or fertilizers, and considerably less water since CEA enables one to grow crops with 70% to 95% less water than would be required under traditional farming. Thus, within the Nigerian agricultural sector which suffers from water availability, this can be a major game changer as vertical farms consume up to ninety percent less water than normal farming ways, which is vital in areas where water is scarce [44]. In the country, due to CEA, there could be some sort of standardization of crop production throughout the year; hence, this can assist in preventing food insecurity and a decline in the importation of foods. CEA systems can be made more efficient than conventional farming and therefore minimize adverse effects on the environment such as climate change and hence enhance sustainability [21]. Another benefit is the space saved with regard to the land requirement of conventional farming. The stacked cropping format, which is typical of the vertically built chamber in purpose-built CEA facilities, makes it possible to yield 4–6 acres of crops in one indoor acre of farmland. Moreover, crop yields are also faster in a controlled environment as the impacts of seasonal change are also limited. Each day of the year provides perfect summery weather with a photoperiod sufficient for maximum plant growth. Another advantage of CEA systems is the job opportunities they provide in urban areas [45], as unemployment is currently a serious issue within the nation.

5. Overview of the Nigerian Agricultural Sector

The agricultural sector is vital to Nigeria’s economy, employing about two-thirds of the working-age population and contributing between 30% and 60% to the GDP of various countries [46]. In Nigeria, agriculture is the largest employment sector, engaging over 36% of the workforce [9]. Nigeria’s agricultural output includes a diverse range of crops, with staples such as cassava, yam, maize, rice, and millet dominating production. Also, cash crops like cocoa, palm oil, rubber, and cotton are significant, particularly in export markets [47]. Despite its importance, arable land in Africa comprises only 6% of the continent’s total area. Nigeria’s agricultural deficits necessitate significant imports, totaling around $10 billion for products like wheat, rice, and poultry [48]. To combat reliance on oil and improve food security, the Nigerian government has launched several initiatives, including the Anchor Borrowers Program and the National Agricultural Technology and Innovation Plan (NATIP), aimed at boosting domestic agricultural production [49].

Nigeria’s agricultural sector accounts for about 22–25% of the country’s GDP and encompasses four main categories: crop farming, fishing, animal husbandry, and forestry (Figure 4), with crop production being the dominant focus, accounting for roughly 87% of agricultural investments [50]. However, the sector faces numerous challenges, such as land degradation, inadequate irrigation, climate change impacts, and high production costs [51]. These issues have led to decreased agricultural yields and increased food imports, with Nigeria’s agricultural imports reaching 3.35 trillion Naira between 2019 and 2023—significantly outpacing exports [52]. In response to these challenges, Nigeria has implemented various policies, such as the Agriculture Promotion Policy (APP) and the Presidential Economic Diversification Initiative, aimed at fostering growth and reducing import reliance [52]. While some programs have seen positive outcomes, issues like bureaucratic inefficiencies, corruption, and inadequate funding continue to hinder progress [53]. Other initiatives, such as the Zero Reject Initiative and the Nigeria Erosion and Watershed Management Project, aim to improve agricultural quality and manage environmental challenges, but they also struggle with execution and local expertise limitations [54]. Overall, while efforts are being made to revitalize Nigeria’s agricultural sector, considerable obstacles remain that need addressing to achieve sustainable growth and food security. A focus on improving agricultural efficiency through technology and sustainable practices, including CEA, is essential for maintaining its role in the Nigerian economy [4].

In addition to conventional challenges, the Nigerian agricultural sector faces several social issues that can affect its evolution in the long run such as poverty, gender inequalities, and lack of youth engagement in agriculture. The poverty level in the rural area is high and directly impacts agriculture negatively. This poverty results from low output and a lack of mechanized methods of farming reducing economic activity and maintaining people in poverty circles [55]. Gender inequalities are also very well documented in Nigerian agriculture. Some of the problems that affect women who play a central role in agricultural production include issues related to land and credit extended to them as well as extension services [39]. Due to the above gender-determined roles, they are unable to optimize their participation in agricultural production and economic development [56]. Similarly, the level of youth engagement in agriculture is inadequate and can be related to a lack of mechanization in the agricultural sector and negative financial returns. Several youths in Nigeria are moving to the cities in the hope of finding better livelihoods and this makes the agricultural sector scarce in youthful brains for inventions [40]. This trend is disastrous for the future sustenance of agriculture in Nigeria [57].

6. Evaluating CEA in the Context of the Nigerian Agricultural Sphere

The implementation of CEA in Nigeria could be regarded as a viable strategy for improving sustainability and production rates in Nigerian agriculture. If technology is used in controlled environmental agriculture, it has four major benefits including efficiency, sustainability, productivity, and profitability. In Nigeria, especially where agriculture is a crucial sub-sector of the economy and source of income for many citizens, incorporating CEA could go a long way in solving some of the most pressing problems that plague our agricultural sector; they include limited arable lands, unfavorable weather conditions, and generally low yields [58]. There is potential for a range of benefits from adopting CEA in Nigeria. Non-soil growing methods of the CEA systems like hydroponics and vertical farming can efficiently use the limited water and nutrients which is of paramount importance in the arid areas of the world [59]. In addition, through the promotion of year-round production of high-value crop species, the implementation of CEA could assist in reducing seasonal farming and imports of specific produce. Institutional and legal factors are another difficulty, and they may be poorly formalized and lack uniformity. This makes it difficult to adopt these advanced technologies for agriculture since they must meet certain set regulatory measures such as getting permits. Also, there are no supporting policies and investments in the infrastructure which also limits the expansion of CEA in the country.

Technological competency and available resources are also a thorny issue. Some of the Nigerian agricultural firms may not have the appropriate structures, technology, and capital to put into and sustain complex CEA systems. CEA technologies’ implementation costs can be high and are related to technical issues. Smaller farms may be less capable of introducing CEA technologies because of high costs [60]. To address these challenges, increased investment in technology and infrastructure is required along with an insistence on research and development geared towards CEA systems. Another issue that is related to knowledge transfer is that individuals get into a certain organization with a limited number of relationships, which can hinder the effective exchange and dissemination of knowledge within the organization. Other elements show that quality networks are essential for extending best practice ideas, pooling resources, and encouraging partnerships to promote and implement CEA efficiently. It is essential for these relationships to be developed and enhanced to encourage co-operation and the sharing of information, ideas, and technology [61].

Another source of variation is related to cultural factors and the psychological distance between local practices and the State of the Art in CEA technologies. In Nigeria, farmers and agricultural firms must change from conventional practices to innovative ones, no matter how many times they may appear unfamiliar and difficult [60]. Education and training programs are appropriate and necessary now and can go a long way in filling this gap and serving as catalysts for the promotion of CEA. These external uncertainties make the environment uncertain, which may discourage investment in technologies and infrastructure for agriculture. Solving these challenges demands a favorable policy environment which will give the green light to the implementation of CEA by providing a clear direction [61].

However, from these challenges, opportunities exist for CEA to revolutionize agriculture in Nigeria. Through increased resource utilization productivity, increased crop yield as well as reduced environmental effects, CEA could potentially play an important role in the sustainability of Nigerian agriculture. While there is an increasing body of literature published in other global regions about CEA and sustainable agriculture, there is a gap in knowledge that considers the peculiarities of the challenges and prospects of CEA in the context of Nigerian agriculture [5]. This underscores the need for further research that narrows down the ways through which CEA can improve the sustainability of agriculture in Nigeria. This is important in the understanding and actualization of the intricacies of CEA adoption and implementation.

7. Implementing CEA in the Nigerian Agricultural Sector: Potential for Social Impact

There is a tremendous possibility for the achievement of agricultural sustainability through Controlled Environment Agriculture (CEA) in Nigeria. CEA systems such as vertical farms and hydroponic systems can offer new employment opportunities for people in both urban and rural domains [38]. Such positions may include technical ones where the holder works in operating and maintaining the system and sales or distribution jobs. In addition, it entails specialized skills; nevertheless, it offers chances for training in techniques of improved agriculture and new agricultural technology. It is for these reasons that CEA can exert a positive impact on the fight against food insecurity and malnutrition. Also, the high-yield production capacity of CEA systems and the availability of fresh produce all year round eliminate the dependence on seasonal production and imports [41]. This provides greater predictability in food supply which is friendly to local markets and may well improve diet and general wellbeing [62]. Through the application of CEA technologies, smallholders can grow crops with high market value in urban and peri-urban settings and abate post-harvest losses [63]. This integration can therefore enhance the local economy and help in improving the distribution of profit disequilibrium.

In implementing CEA in Nigeria, community engagement and acceptance must be addressed. Recommendable strategies for community participation should include the formulation and implementation of CEA projects which should involve the target community. This participation assists in guaranteeing that CEA systems providing for the necessities and states of affairs in a specific region will be implemented, thus elevating the possibility of CEA systems’ adoption [64]. Through seminars and workshops, local farmers and entrepreneurs will be equipped with the necessary information and skills to manage the CEA systems. Further, the ideas of new technologies may initially be met with cultural suspicion in certain societies; nevertheless, raising awareness about the changes in the communities can help manage the process. CEA has the prospect of enhancing the dimension of social sustainability in Nigeria by addressing many areas of concern, including poverty in the rural areas, labor issues, and resources. It might be used to improve a more balanced and promising agriculture in ways that encourage new employment, access to food improvement, and general development. The gains can be realized by enhancing the approach to reach the people and communities and altering the activity pattern of the CEA with reference to the structure of various communities [65].

8. The Environmental Benefits of CEA

CEA provides several significant advantages in addressing environmental problems and is viewed as a more sustainable solution to challenges facing conventional agriculture. CEA methods such as hydroponics and aeroponics employ methods that are far more efficient than traditional agriculture methods in that they reuse water and nutrients through a closed-loop system [19]. This makes them a more sustainable approach for optimal crop productivity as they incorporate automated nutrient supply with systematic plant health monitoring and environmental management [66]. Apart from ensuring that limited water supply is used efficiently, it also helps reduce cases where nutrients pollute water bodies since they do not seep out of the ground [35]. In addition to the above, CEA also favors minimum land occupation and health and fertility of the soil as CEA cuts across the need for extensive land areas for growing crops by adopting the use of vertical farming and indoor environmental conditions. This is especially so when the availability of land may be constrained, as is the case with Nigeria.

CEA systems are designed to function in highly efficient buildings, and many systems can be connected to renewable power sources such as solar or wind to decrease their carbon footprint [36]. This contrasts with fossil-dependent traditional farming, which uses fossil fuels in tractors and other farming equipment and in the transportation of produce, which releases greenhouse gases. Additionally, the prospects of incorporating CEA into the advancements of renewable energy technologies comply with the international anti-climate change drive and advancement of sustainable development [38]. As shown in Figure 5., the global CEA market size is projected to grow at a compound annual growth rate of 14.21% reaching a value of USD 211.73 billion by 2029 [67]. The key growth drivers for the global CEA market include urbanization, climate change and unpredictable weather patterns, the need for year-round food production, and water scarcity in both developed and developing nations. The market is also being driven forward by technological advancements and the use of automation in agricultural processes.

Based on geography, the global CEA market is classified into the Asia–Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America dominates the market because of its significant investments in automation, advanced infrastructure, and government support for promoting agricultural innovations and CEA technologies which greatly enhance efficiency and scalability in CEA operations [68]. Furthermore, this market region is driven by factors such as the availability of funding from commercial organizations and venture capitalists, which is utilized in infrastructural development and scaling up high-tech farming facilities and focused research on the optimization of CEA systems which focuses on enhanced food production capacity all year round using containerized systems for increased food availability [69,70]. Besides this, increased awareness among consumers and other stakeholders about alternative farming techniques has significantly contributed to North America’s position as the leading market in CEA [69]. Furthermore, the growth of CEA can also be attributed to the growing demand for fresh, locally grown, pesticide-free produce by the populace which CEA provides [6]. The Asia–Pacific region is growing rapidly too, and this is driven by the availability of low-cost labor in the region and the rapidly increasing population [71]. A forecast of the present growth rate of CEA across regions in 2023 and a projection of its reach by 2030 is presented in Figure 6.

9. Comparative Analysis: A Case Study of Examples from South Africa and Kenya

In the urban environment of South Africa, vertical farming and aqua farming have become more widely accepted and have proved efficient in terms of water and land usage and the output produced [37]. Similarly, Kenya has embraced greenhouse farming practices to manage environmental effects and this has been more effective in terms of resource usage and lower CO₂ emissions. A hydroponic greenhouse in Kenya yielded a 35% increase in tomato production, with an initial investment of $20,000 and a three-year return on investment. Similarly, South African vertical farms reduced water usage by 90% while achieving 20% higher yields of leafy greens [19]. These successes highlight the feasibility of such CEA efforts in Nigeria which has similar business and environmental conditions as Kenya and South Africa and thus can be instructive for Nigeria where the challenges of drought and CO₂ emissions are equally current. Introducing vertical farming in cities like Lagos, Abuja, and Port Harcourt could achieve replicable results, enabling them to meet the increasing demand for fresh produce, save water, relieve pressure on land, and create jobs through urban farming. Greenhouse farming can be encouraged in northern Nigeria considering the region’s arid and semi-arid climatic conditions, which are ideal for CEA [72]. Northern states like Kano, Katsina, and Sokoto possess high solar insolation throughout the year, which is an inexpensive natural endowment for operations in greenhouse facilities, especially when coupled with systems for solar energy to maintain environmental controls. The integrated systems for solar energy can be harnessed to power irrigation systems to assist farmers in adapting to shifting rainfall patterns for the crops being grown in the greenhouse facilities, and even reduce emissions and costs associated with diesel-powered irrigation, offering the farmers excellent yields throughout the year in the face of the rising effects of climate change [72].

CEA’s achievements in the reduction of environmental effects in Kenya and South Africa adequately elucidate the possibility of applying the same strategies in Nigeria with the aim of tackling the challenges of water rationing as well as the degradation of soil [27]. What works for these countries is that CEA is not just an innovative farm strategy; it has served as a gateway for leaping over resource constraints into high productivity with environmental viability. Furthermore, the use of CEA technologies can also reduce the effects of the conventional approach to farming on the environment and can assist Nigeria in its efforts to advance sustainability in the agricultural sector, also improving the provision of food security. The part played by CEA in the promotion of environmental sustainability in Nigeria is very important. In this sense, CEA can be said to provide a prospect for moving toward a more sustainable agri-food system by responding to the issues brought about by conventional farming practices such as soil depletion, water consumption, deforestation, and contribution to the emission of greenhouse gases. Some of the experiences of other African countries suggest that CEA has the potential to play a strong role in Nigeria’s environmental sustainability efforts, thus creating the possibility of an improved agricultural future [73].

To replicate these actionable strategies from other African countries in Nigeria, policy and infrastructure development must be prioritized, especially regarding the setting up of a reliable power supply that includes renewable energy sources. Financial empowerment for the smallholder farmers dominating the agricultural sector should be supported with accessible credit facilities, grants, and subsidies that are specifically matched to CEA adoption. It is also important that investment in localized research and development is prioritized, which will enable Nigeria to adapt CEA technologies to its unique agro-climatic conditions. Finally, public-private partnerships will also be important in mobilizing the resources and expertise that will be required to upscale such innovations on a national scale.

10. Exploring Challenges of CEA in Nigeria and Theoretical Frameworks/Determinants Underpinning Its Adoption

In Nigeria, CEA faces institutional or structural, financial, socio-economic, and cultural challenges [74]. Others include a lack of information, poor land tenure, marketing failure, and infrastructural deficits of the country [75]. Additionally, the suitability of CEA innovations to the end-user, the human labor requirement, and access to external inputs and crop residue for feeding livestock pose a steep obstacle to CEA adoption and mainstreaming [76]. Another issue affecting the adoption of CEA for traditional and regional farmers is securing support for setup and knowledge in the operation of the facilities. The relatively high cost of investments in CEA technologies at project inception is another challenge especially for smallholder farmers who may not be able to afford capital for establishment or access credit [77]. Also, many consumers lack both technical know-how and the proper structures for implementing CEA systems that could slow the adoption. For example, most smallholder farmers in rural areas have hardly been trained in the use of automated irrigation systems or monitoring of environmental parameters like humidity and temperature in greenhouses. Another aspect is the energy infrastructure of Nigeria, considering the epileptic nature of power in Nigeria and that CEA systems are highly reliant and sensitive to electric supply [78]. Without this foundational knowledge and infrastructure in place, even the most affordable CEA solutions may remain unreachable or underutilized by farmers.

The process of CEA adoption could also be a barrier. In the seminal work “Diffusion of Innovations”, Rogers [79] established that the process of choosing to adopt an innovation includes knowledge, persuasion, decision, implementation, and finally confirmation. Nevertheless, there is an issue with the linearity of this process [80]. For instance, a current investigation on indigenous innovations in agricultural practices among small-scale farmers in rural Nigeria reveals that farmers make their decisions through a consultative process where they consult with other farmers [81]. However, the consensual process of decision-making by smallholders is argued to be biased towards an outsider as exemplified in the Participatory Rural Appraisals (PRAs) paradigm. Niles et al. [82] suggested that location-specific case studies are suitable for assessing determinants of adoption for a given situation. The heterogeneous nature of farms in sub-Saharan Africa makes bespoke interventions to solve environmental challenges more appropriate, compared to a generalized approach. Therefore, making technologies such as CEA user-friendly and involving the potential users in the process of development aids uptake [83].

The adoption of CEA can also be considered within the Davis’ technology acceptance model, which posits that perceived usefulness and perceived ease of use are two primary factors that determine the adoption of technology [84]. The perceived usefulness of CEA by farmers will be the understanding that the technology can really improve agricultural productivity and profitability. This will inform the Nigerian farmers of its evident advantages, for example, growing crops all year round. However, the perceived usefulness and the perceived ease of use have been found to be very distinct decision-making processes that need to complement each other to influence the adoption and use of technology [84]. In rural Nigeria, for instance, with generally limited access to education and technical know-how, the complexity of CEA systems would not support adoption unless they are simplified and made user-friendly. However, a study by Flett et al. [85] found that farmers were more likely to prioritize the potential benefits and outcomes of technology over its simplicity or ease of use, although they acknowledged that the ease of use was still an essential factor. Hence, one could say that if the institutional, financial, economic, and cultural challenges facing CEA in Nigeria are addressed [74], farmers will most likely focus on the benefits of CEA, such as increased yields, water efficiency, and year-round production over ease of use, as these directly address their primary concerns of productivity and profitability.

Importantly, the adoption of CEA is not just about embracing new practices but also about adaptation, which requires an interactive process of participatory learning and action (PLA). Few studies have been conducted on barriers to the adoption of CEA in the context of smallholder farming in sub-Saharan Africa (SSA) [86]. Most studies on barriers to climate change adaptation are in the context of developed countries [87]. Even among the few SSA studies, few have considered the impact of CEA practices adoption in the context of West African smallholders [88]. For climate change adaptation to be effective, there is a need to overcome these barriers and to deliver the CEA practices in a participatory way with the users as equal stakeholders [88]. While CEA practices such as greenhouses and vertical farming are gaining attention globally, there is limited research on their application within the Nigerian agricultural sector. Existing studies primarily focus on general CEA technologies, without addressing how these practices are being implemented in Nigeria’s unique urban and climatic contexts. Additionally, the viability of CEA for urban agriculture in Nigerian cities, where infrastructure and resource constraints differ from more developed regions, remains underexplored. Moreover, there is a significant gap in the economic analysis of CEA systems in Nigeria.

11. Economic Viability of CEA in Nigeria

The use of CEA can impact the Nigerian agriculture sector positively, but its effectiveness in economic terms is an urgent question. As attractive as CEA is in relation to increasing returns and optimizing the use of resources, the costs of adopting such technologies are too high for most growers, especially for small-scale farmers. Similarly, the higher capital cost for hydroponics, vertical farming, and greenhouses is a barrier to the adoption of these production techniques as they are very capital intensive [37]. Reports show that establishing a hydroponic system is estimated at a capital cost of around $100,000 per acre compared to $50,000 per acre for conventional systems [89]. Although these systems have a high cost, these costs are defrayed in the long run by savings made in the aspect of water usage, operational costs, and better crop yield. It is estimated that the operating costs for conventional systems are around $20,000 per acre per year compared to around $15,000 per acre per year for hydroponic systems [89]. In their study, Lages Barbosa et al. [90] compared greenhouse hydroponic systems to conventional lettuce production and found that greenhouse units (815 m²) produced 41 ± 6.1 kg/m²/year of lettuce, requiring 20 ± 3.8 L/kg/year of water and 90,000 ± 11,000 kJ/kg/year of energy. In contrast, conventional production yielded only 3.9 ± 0.21 kg/m²/year, with water and energy demands of 250 ± 25 L/kg/year and 1100 ± 75 kJ/kg/year, respectively. Although hydroponics was shown to require 82 ± 11 times more energy in the study, it achieved 11 ± 1.7 times higher yields than the conventionally produced lettuce [90]. This high yield advantage emphasizes why CEA systems are suitable for high-value crops like vegetables, herbs, and fruits since they have the potential to yield high profits within the urban and peri-urban markets. For instance, a study in Quebec City, Canada, simulated the profitability of growing lettuce in two CEA systems: a greenhouse and a vertical farm, each on a growing space of 1171 m². The estimated capital expenditure was $480,060 for the greenhouse and $587,527 for the vertical farm. Annual operating costs were estimated at $291,717 for the greenhouse and $282,303 for the vertical farm. Despite the differences in initial investment and operating expenses, the gross profits were nearly identical: $184,920 annually for the greenhouse, while the vertical farm recorded a slightly higher profit at $194,334, demonstrating the economic viability of both CEA systems with regard to high-value crops like lettuce and its potential profitability in a local market [18]. However, CEA may not be profitable for perennial crops such as rice and maize as these require more selective crop planting techniques in CEA systems to meet the costs of production.

In Nigeria, however, the absence or limited availability of cheap sources of funds and policies incentivizing CEA intensifies the economic barrier to its adoption. Indeed, it has been shown that many farmers find it difficult to come up with the required capital to fund the CEA technologies [91]. This is made worse by Nigeria’s infancy in agricultural financing where loan facilities and subsidies for new and improved brands of agriculture are scarce, unlike South Africa and Kenya that have been able to incorporate government subsidies and public-private partnerships to ease the financial effect on farmers adopting CEA [37]. These comparative observations serve to highlight the fact that Nigerian policymakers should hence come up with specific financial interventions aimed at making CEA affordable for as many farmers as possible. In general, the initial financial investment costs may be a problematic issue for SMEs and especially for smallholders, but these eventually balance out in the long run. Overcoming the challenges faced by CEA in the country requires enhanced access to financing, subsidies, and technical support to fill the existing gap and expand CEA usage throughout the regions in Nigeria.

12. Sustainability and Climate Change as Related to the Environment

One of the ways through which CEA has been advocated for in Nigeria is on the grounds that it could provide answers to environmental degradation and climate change challenges [92]. For instance, CEA systems including hydroponics and vertical farming utilize 80% less water than soil-based farming [93]. This is a major advantage in Nigeria as there is a water shortage in various regions of the country, especially the north. The conservation of water in CEA systems combined with the reduction of pesticides and herbicides used in the system makes the system friendly to the environment unlike the traditional farming practices that tarnish the infertile soil and water sources. Aside from water conservation, CEA can also support Nigeria in how to lessen the social effects of climate change on agriculture. That is in fact the central notion that has been corroborated by the interviews since the physical spaces of CEA systems provide a constant environment for crop growing throughout different seasons. This is particularly important given the fact that Nigeria and other countries in the region are experiencing more frequent and acute climate variability which is characterized by short and erratic rainfall seasons, droughts, and flooding. In this regard, CEA may play a role in reducing the vulnerability of climate-related risks for farmers by offering the conditions necessary for plant growth resulting in improved food productivity and security. Nevertheless, the environmental advantage of CEA must be considered together with the issues associated with energy use. As for energy intensity, many CEA systems such as vertical farms and high-tech greenhouses require artificial lighting, heating, and cooling to create a favorable environment for plant growth. In Nigeria, for instance, electricity supply is both scarce and expensive which poses a potential threat to the sustainability of CEA due to the high energy consumption required [33]. In addition to this high energy need are the constant power breakdowns which make it difficult to maintain the continuous environmental conditions relevant in these systems for optimum performance. On the other hand, countries like South Africa whose energy infrastructure is more stable have been able to scale up CEA with slight intermission [37]. Possible solutions that have been proposed towards addressing the energy crisis in Nigeria include using renewable energy such as solar power. The incorporation of solar power as a component of CEA systems in the country could go a long way in cutting down the cost of energy and aiding the sustainability of such systems [27]. This has been accomplished in some areas of Kenya; the vertical farms based on solar power have effectively contributed to minimizing the carbon effect in urban agriculture and power supply. Therefore, although there is an implication that the establishment of these systems such as CEA entails emphatic environmental gains on water use and climate adaptation, the likelihood of success for these systems within the Nigerian context will depend on the energetic aspects. Integration of more renewable energy and enhancement of the national power grid will be crucial for CEA to be able to achieve sustainable development in Nigeria.

13. Social and Food Security Implications

CEA has the potential to bring about agricultural sustainability and food security, especially in Nigeria. Currently, the population of Nigeria is about 200 million and it is expected that it will reach 400 million in 2050 [94], and this will put a lot of pressure on agriculture to feed the increasing population. CEA provides a solution through the cultivation of high-value crops throughout the year especially in urban areas where available land for agricultural production is scarce. A survey conducted on farmers concerning the CEA systems revealed the fact that it was beneficial in enhancing crop yields and delivering fresh produce to urban markets [95]. This is especially important for the diversification of Nigeria’s economy away from dependence on imported food products, which have exposed it to the vagaries of international food prices.

However, there is more to CEA than just finances and productivity. The social implications of CEA are a bit more complicated. Although there is potential for CEA to create more employment opportunities, especially in urban areas, there is also a tendency to worsen the problem of inequalities in resource access in agricultural activities. The implementations of these CEA technologies are costly in that the systems can only be afforded by well-off farmers and businesses, bringing about inequality. In a study [96], the majority of farmers cited the high cost of CEA as a major hurdle to its adoption. If no efforts are made to popularize CEA, then it might take time for these technologies to be available thus serving only a few choice farmers; this will simply widen the gap between the rich and the poor in the agricultural sector. Another important issue identified with regard to CEA mainstreaming and uptake is the relative absence of technical know-how to operate and maintain CEA systems. Most of the Nigerian farmers are ill-equipped with the necessary training and adequate knowledge as to how best to implement and manage CEA systems. This knowledge deficiency also hinders CEA’s possibilities for expansion and causes system failure risks; a problem with critical economic impacts for farmers who have capitalized earnestly on these technologies. There is therefore the need to develop human resource capacity in capacity-building training and knowledge transfer from nations with successful CEA experience. From the point of view of food security, it is possible to state that the focus of CEA on high-valued crops although being financially effective, may not allow the nation to meet its food security needs in terms of staple crops [4]. This is most applicable to crops such as tomatoes, peppers, and salad crops which though nutritional, are not staple foods in Nigeria. Staple crops such as rice, maize, and cassava have low market prices and hence poor marketability in the CEA system; it is therefore clear that conventional and technology-intensive farming systems will always remain relevant in the provision of the food needs of the population. Thus, although CEA has the potential to support and augment Nigeria’s agricultural industry through constant and efficient production of fresh produce, it can by no means substitute conventional farming as an adequate solution to the nation’s food insecurity challenges. Therefore, the policy of CEA may have to focus on the availability of high-value crops in Nigeria and lessen dependence on imported foods by increasing their production.

14. Policy and Infrastructure Requirements

It is pertinent to note that the future of CEA in Nigeria would be highly dependent on the policies and structures that are put in place to support CEA programs. The most common limiting issue is the unavailability of government support, subsidies, and policies to push CEA technologies into common use. This is because innovative policies of government can be effective in contributing to the expansion of CEA [5], and Nigeria’s environment, government, and policies are still largely wanting in these areas. Similarly, there is a need for more public-private partnerships to support CEA as such partnerships could help to support CEA both economically and in technologies, as well as help to supply farmers with the necessary training and support. For example, technology partnerships between the government and the private sector, along with development partners could contribute towards lowering the costs of CEA systems by encouraging the use of locally sourced technology. This approach has been effective in Kenya whereby NGOs and international donors have come in handy to support the development of CEA in the urban areas [5]. Hence, apart from monetary motivation, Nigeria’s infrastructure especially in the energy and water sectors should be enhanced to ensure the success of CEA. Importantly, the unstable electricity supply constraint in most parts of Nigeria remains a major issue for farmers who pursue a CEA system that depends on the constant regulation of climate conditions. The solution to this problem will therefore call for both infrastructure upgrades of power systems in the various countries and the incorporation of renewable power solutions particularly solar power into the CEA systems. Moreover, the water supply infrastructure will require an upgrade to accommodate the growth in CEA where water scarcity is expected to be more acute in the future. While CEA systems consume only about 10% of the amount of water used in traditional agriculture, the systems still require proper water supplies to operate properly. Prospects of investment in water storage, recycling, and successful implementation of CEA in Nigeria will thus have to be anchored on the evolution of specific policies and structures. These barriers therefore call for an urge to embrace public-private partnerships, accommodate government incentives, and invest in energy and water infrastructure.

15. Gaps in the Literature, Limitations, and Future Research Direction

While CEA practices such as greenhouses and vertical farming are gaining attention globally, there is limited research on their application within the Nigerian agricultural sector. Existing studies primarily focus on general CEA technologies, without addressing how these practices are being implemented in Nigeria’s unique urban and climatic contexts. Additionally, the viability of CEA for urban agriculture in Nigerian cities, where infrastructure and resource constraints differ from more developed regions, remains underexplored. Moreover, there is a significant gap in the economic analysis of CEA systems in Nigeria. While researchers acknowledge the potential benefits of CEA, comprehensive studies that evaluate the cost-effectiveness and economic sustainability of these systems in Nigeria’s urban settings are lacking. This includes understanding the initial investment, operational costs, and long-term financial viability for both small-scale farmers and commercial operators.

Other limitations to the study and application of CEA in Nigeria include a lack of context-specific data on resource use such as water and energy requirements and how these align with Nigeria’s infrastructure capacity. For instance, while existing studies such as the one conducted in the United States indicated that hydroponics has high energy requirements compared to conventional farming [90], it raises questions about how such systems could be adapted to Nigeria’s unreliable electricity grid. While there are high yields and profits evidenced from vertical farms and greenhouse-grown lettuce in advanced economies [18], scalability and adaptability to the socio-economic and cultural contexts of Nigeria have not been considered. This present study is also limited by reliance on secondary data and the absence of field studies. The absence of pilot projects in Nigeria limits the ability to validate results from other regions and adapt those CEA practices to local environments. Moreover, socio-economic factors such as farmers accepting new technologies and the willingness of the urban consumer population to pay a premium for CEA-grown produce, have not been studied.

Future research should explore pilot CEA projects in Nigeria, focusing on cost-effectiveness, urban-rural scalability, and socio-cultural barriers to adoption. This will include experimental studies on the performance of CEA systems in different climatic conditions in Nigeria, profitability determination for different high-value crops, etc. Partnerships between academia, government agencies, and private sectors should be oriented toward local research involving the integration of renewable energy, efficient resource utilization, and the development of site-specific financial models for CEA system adoption. Moreover, studies geared towards understanding the potential for hybrid CEA systems that incorporate elements of traditional farming may be one of the keys to overcoming the barriers facing small-scale farmers.

16. Recommendations

In Nigeria, there is a need to subsidize farming by governmental and non-governmental agencies, particularly for small-scale holders who are the driving forces behind the Nigerian agricultural sector. This could be in the form of government incentives, cheap credit cash subsidies, or rebates which are targeted at CEA technology adoption. This will include partnerships to assist in the funding equation to help the small farmers who otherwise would not afford the high cost of setting up a CEA system, to access the necessary resources needed. For instance, there is a need for the adoption of policy frameworks that involve government subsidies and public-private partnerships. The subsidies can be targeted toward decreasing the capital costs of equipment by giving tax breaks to farmers who transition to CEA systems. The government should equally establish a revolving fund for smallholder farmers that provides low-interest loans for projects involving CEA. Similarly, investments in infrastructural developments that can support a steady and stable provision of power are needed as CEA systems are reliant on electricity to maximize their performance. Thus, strategies for energy diversification inclusive of solar and wind power need to be integrated into CEA systems at the point of inception. The government can also design renewable energy grants or loan programs that could incentivize farmers to integrate solar or wind power into their agricultural practices. The integration of these renewable energy sources into CEA will not only make the operations more stable, but also minimize the environmental impact of the agricultural practices in a way that is in line with Nigeria’s and global sustainability goals.

In addition, capacity enhancement programs and education both at grassroots and institutional levels are needed to ensure broad adoption and application of CEA. Field schools and community-based training centers should be established to teach farmers how to operate and maintain CEA systems. Farmer cooperatives could also be supported to pool resources to share CEA infrastructure for reduced individual costs while maximizing the use of resources. Through these cooperatives, farmers can exchange knowledge and jointly market high-value crops. With these facilities, the farmers as well as the agricultural workers can undergo training on how to operate and maintain the CEA systems which will facilitate adoption and optimal performance and will also generate employment for people in the urban and peri-urban settings, especially the youths, and make agriculture a viable career option for everyone.

The private sector, which includes financial institutions and agri-tech companies, also has crucial roles to play. Banks and microfinance institutions could develop specific financial products, such as loans or insurance schemes related to CEA, which will reduce financial risks to farmers. Further, partnerships between technology providers and farmers can introduce leasing options that reduce the upfront cost of adopting CEA systems. Agribusiness companies may invest in models of “pay-as-you-grow” for CEA infrastructure, whereby farmers can pay in installments with the yields generated. Apart from this, it is important that private investors engage in funding demonstration projects showing the profitability of the CEA in Nigeria. Such investment in demonstration projects should focus on high-value crops which would then work as a pilot for broader scaling up across the country.

Finally, field trials and research should be conducted collaboratively by the government, private sector, and academic institutions to assess the socio-economic impacts of CEA adoption, providing valuable data to inform future policies and strategies.

17. Conclusions

Controlled Environment Agriculture (CEA) promises a lot in Nigeria’s agricultural sector because of food insecurity, environmental issues, and the nation’s over-dependence on traditional methods of farming that will be hard to practice due to the climate change impacts. Hydroponics, vertical farming, and greenhouses which are associated with CEA have numerous benefits: high yield, water ER, and continuous production. However, there are economic, social, and infrastructural critical barriers limiting the spread and adoption of CEA. CEA systems’ high initial costs coupled with the unavailability of cheap credit to finance them are still the biggest challenges now though they affect mainly the smallholder farmers. These developments leave CEA still as a costly, highly centralized technology that will continue serving only large-scale commercial farmers and entrepreneurs without any form of governmental subsidies, policies, or any other type of support. With the agricultural sector accounting for about 22–25% of Nigeria’s GDP and the need to improve the export economy of the country, there is a concerted need to increase agricultural yield in the country using non-conventional approaches including CEA. For optimal CEA uptake, there is a need for the enhancement of energy infrastructures since CEA systems depend on power supplies which are very unstable in the Nigerian context. From a social point of view, CEA has the potential benefit of generating employment opportunities, especially for younger generations interested in agribusiness. However, there could be a problem of “winner takes it all” as not every farmer could be availed of these CEA technologies. Moreover, the organizational focus of CEA on high-value crops provokes doubts about its capability to meet staple crop requirements and whole food security demands. Overall, applying CEA can bring several positive changes to the Nigerian agricultural sector if several financial, technical, and policy challenges are resolved. To ensure the sustainability of CEA and the benefits arising from it, targeted government interventions, investment in CEA, and capacity building are crucial and need to be matched across Nigeria’s agricultural sphere. Future studies should focus on the evaluation of the cost-effectiveness and economic sustainability of CEA in Nigeria’s urban and rural settings to increase understanding of the initial investment cost, operational costs, and long-term financial viability for both small-scale farmers and commercial operators.