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What Stakeholders Expect In Agriculture Sector

By Fabian Odum
12 July 2015   |   4:29 am
IT is not in doubt that oil, as major source of revenue, has failed the nation following the global slump in prices and increasing fracking exploits in the UK and the rich shale oil deposits in the US. Nigeria’s clear option, which has become a singsong, is agriculture, and President Buhari should plug into that…

Oil PlantationIT is not in doubt that oil, as major source of revenue, has failed the nation following the global slump in prices and increasing fracking exploits in the UK and the rich shale oil deposits in the US.

Nigeria’s clear option, which has become a singsong, is agriculture, and President Buhari should plug into that economic space to bring diversification forcefully to the table.

As if the pressure on oil-dependent world is not enough, the recent (July 3) solar-powered flight of the aircraft, Solar Impulse 2, from Japan to Hawaii in the US sent clear message that the days of fossil fuel energy are just numbered. Nigeria, more than ever before need to get its acts right in head-hunting who becomes the next Minister of Agriculture and this should not be a job with which to settle politicians, who helped win elections.

If President Buhari truly wants to diversify the economy from oil, there are several areas of the Agricultural Transformation Agenda (ATA) that need be sustained. Nigerians would therefore be better served to see him appoint someone who will continue the ATA programmes that have shown success.

The subsidised fertiliser and seed distribution needs to be pursued to keep expanding food production in the interest of the economy. This would require a continuation of the programme to buy and install rice and cassava mills, to set up storage and aggregation centres, and establish the badly needed market corporations. It is on record that many private sector investments in Kwara, Taraba, Niger, Ogun and some other states worth hundreds of millions of naira have been made in cassava alone. Nigeria cannot afford to backtrack on laudable projects that would bring income to the rural poor and youths.

The call by Dr. Bukola Saraki, the Senate President that corporate bodies owing the nation about N30bn in the rice waiver deal as exposed by Adesina before he left government should not be handled with kid gloves by the President. It is clear that some foreign businessmen with long presence in Nigeria pretend to invest in Nigeria’s rice value chain, but have the aim of thwarting a good programme are still here and lurking around corridors of power, peddling their influence.

Coordinator of the Nigerian Agribusiness Group and CEO, Best Foods, Mr. Emmanuel Ijewere said the former Minister gave agriculture a new meaning and attracted entrepreneurs, who now saw better potential to do good business and diversify the economy.

In the past three and half years, the Organised Private Sector (OPS) and even the informal sector have made investments that show the business side of agriculture. This is driven by the policy direction of the Agricultural Transformation Agenda (ATA) of the immediate past administration.

The Economist of London recently noted that Nigeria had made very good strides in Agriculture, and that though the naira has fallen sharply against the dollar, food inflation is still under control, ‘a situation not normal when the currency weakens because Nigeria has vastly expanded its own food production over the past few years.’ The magazine attributed this to positives brought in by the erstwhile minister in ‘Mr. Jonathan’s government.’

Triton Aqua Africa Limited Director of Production, Mr. Yashpal Jain said the Iwo farm of the company, which harvested 40 tons of catfish in March, was part of the $65m planned for investment in catfish and tilapia production in the next five years.

Mr. Paul Gbededo, Group Managing Director, Flour Mills of Nigeria Plc and President, Association of Food, Beverage and Tobacco Employers (AFBTE) said due to the policies put in place in the last few years, many have made investments based on them.

The Nigerian Sugar Master Plan, which makes provision for sugar refineries to do backward integration, has encouraged multi-billion naira mills in some parts of the country. In Niger State, Flour Mills is constructing a huge mill to be ready in 2016.

Gbededo said it means that if you are a refiner of sugar, you should cultivate sugarcane and produce raw sugar, and this involves huge investments.

Another is the Cassava Inclusion policy to produce composite flour for bread and confectionaries. While FMN has committed itself to massive cassava plantation in Kwara State, National President of Nigeria Cassava Growers Association (NCGA), Segun Adewumi revealed the creation of Cassava Development Commission is a good step. The Commission is to be managed largely by members drawn from the private sector, and that way the bread will work.

Fresh investments in oil palm by PZ Wilmar in Cross Rivers and other states, resulting in plantation towns is massive, among others like Okomu Plc and Presco Plc in Edo State is commendable and reinforcing good policies is important.

Figures from The National Bureau of Statistics show that national food production grew by 21million metric tons between 2011 and 2014 and a consequent reduction in food imports. This was done through the application of technologies following investments by the OPS and medium scale operators in the sector.

A huge part of the success was hinged on the establishment of farmers’ database, recording over 14.5million farmers registered farmers, which were beneficiaries of subsidised inputs and services.

The past administration recorded that 14.3million farmers redeemed farm inputs between 2012 and 2014. By region, the north-west recorded the highest redemption, at 30 per cent of the total. The north east, despite the prevalence of insurgency, followed at 22 per cent, while the north central recorded 17 per cent, south-south 12 per cent, south-west 11 per cent, and south east 9 per cent.

It also said an estimated additional N778billion has gone to rural farmers as a result of increased productivity from the use of improved seeds and fertilizer to improve rural economies largely driven by farmers.

In 2011, Nigeria with a farmer population exceeding 50 million farmers produced and sold only 14,788MT seeds. But by 2014, this had risen to 170,692MT, an increase of 1,054 per cent emanating from 134 seed companies that do business in the country. Figures that emanate from the Federal Ministry of Agriculture and Rural Development (FMARD) showed that seed companies have grown in number from 11 in 2010 to 134 to 2014, while $5billion new investment has gone into the fertilizer sector. ‘The seed and fertilizer sector leveraged loans worth N40billion from banks in 2014 alone who now see the agricultural sector as an area of worthy investment.’

Reports from the Bureau showed that rice paddy production rose from 5.3 million MT in 2011 to seven million MT in 2014 and could rise to 12 million by 2019, should government decide to keep implementing the transformation plan. According to the Bureau, Nigeria’s food import bill fell from N3.19 trillion in 2011 to N635billion in 2013; a 403 per cent reduction.

The growth of Nigeria’s agriculture is expected to increase. For that to happen, the installation of rice mills, which are expected to add another two million MT of milling capacity by 2017, should be encouraged so that Nigeria can end rice importation. The projection that Nigeria can easily reach another 32 million farming households by 2019, at a rate of eight million farming household per year should be pursued to logical end. It is possible especially with the former Minister within earshot from the President.

President Buhari’s decision in the choice of Adesina’s successor is crucial and the continuation of the reforms is critical to meeting our food security goals as a nation, with the attendant boost in job creation and improvement of the rural economy. Stakeholders are looking forward to agriculture continuing to play a role as Nigeria’s economic powerhouse.

With his victory at the recently concluded election of the next president of the African Development Bank (AfDB) in Abidjan, it would not be out of place to expect President Buhari to engage the advisory services of Dr. Akinwumi Adesina, former Minister of Agriculture, who received his backing on the way to the AfDB job.

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