Nigeria Agricultural Sector Still Dominated by Peasant Farmers –NACCIMA
by ABOLAJI ADEBAYO
Nigerian Mirror
Dec 26, 2014
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agricultue, NACCIMA, has bemoaned the pace at which the agricultural sector is growing considering the economic status of the country.
Speaking during the courtesy visit to the Minister of Agriculture and Rural Development recently, the President of the association, Alhaji Mohammed Abubakar said, “Given the position that agriculture holds to our national development as a source of food security; job creation; raw materials production for industrial growth; generation of foreign exchange for the country amongst other. The sector is yet to achieve its full potential.
While we are not unaware of the enormity of the challenges which impedes the full realisation of the foregoing, the Association is of the view that the Federal Government should not rest on its oars until we achieve the full realisation of the country’s agricultural potentials.
“As part of our advocacy on issues that will grow the development of trade and investment in particular and the economy in general, the NACCIMA has organised a One-Day Dialogue Session programme tagged, “National Dialogue On Agricultural Value Chain”, with the theme: “Enhancing Agricultural Export Through Adequate Financing”.
The programme was planned, with a view to getting stakeholders in Agribusiness to brainstorm on how to improve on Agriculture production towards self-sustenance and food sufficiency as well as Exports in Nigeria.
It was also used to expose participants to the Federal Government’s Agricultural Transformation Agenda, ATA. Arising from the programme, a communiqué was issued and has been forwarded to your good office for consideration.
During the dialogue, the association had identified peasant farmers domination of the sector as the reason for underutilization of the potential of agricultural sector.
It stated that the high interest rate, which constitutes a major impediment to financing the sector, has not been addressed.
The association also regretted an underdevelopment of agriculture value chain, which has resulted in exportation of agricultural raw materials to the developed countries. Abubakar stated that low investment in infrastructure defined the reason for the underdevelopment of the value chain.
He explained that value chain is the main aspect where Nigeria has comparative advantage, while advocating for urgent private sector initiative and intervention to complement Government efforts.
He decried the low support for seeds and fertilizer to farmers under the Growth Enhancement Scheme, GES, of the Federal Government.
According to him, in the GES arrangement, the governments should provide 50 per cent (Federal- 25 per cent, State-25 per cent) support for seeds and fertilizer to farmers directly and not through the general price subsidy.
Abubakar also stated the need for farmers to be insured so that bank loans can be guaranteed by the Central Bank of Nigeria, CBN.
As contained in the communiqué presented to the minister, the association stated that the Agriculture ministry should be encouraged to reduce the number of peasant farmers through aggressive empowerment.
It urged the government to increase the budget for agricultural to at least 10 per cent of the national budget, while canvassing for discontinuation of double digits interest rate on agricultural loans.
It further stated, “The Bank of Agriculture should be given same level plain of operation by raising up her paid up share capital to N500bn as did to BOI. At least N500bn intervention funds should go to Bank of Agriculture (BoA) as soon as possible.
“The Research Institutes such as RMRDC and FIIRO should be empowered to research more on how agricultural value chain could be developed and sustained.
Also, Research and Development arm of Private Sector should be able to access Research Grants to fast track R & Ds at all levels.
“Return on Investment in the Agricultural sector is low; government should help farmers with incentives that would enhance return on investment on agriculture “Government should provide incentives on imported farm tools and equipment to reduce their cost.
Also, importation of agricultural equipment and machinery should be zero duty and investment guaranteed; also insured by both investors and the government.
In addition, all agricultural products for export must be guaranteed and risk insured while finance-friendly banks underwritten by the NEXIM bank and or the CBN.
“Special arrangement needs to be made for women by the Bank of Agriculture, BOA, to aid their easy access to agricultural loan.
“Policy frame work that would encourage commercial farming should be formulated in order to have an easy transition from peasant farming to commercial farming.
“Government should encourage farmers by buying the farm produce from farmers while buyers buy directly from the government.”
Abubakar, who reemphasized the association’s readiness to continue partnering government towards the revitalization of agricultural sector, said, “With all of us working as partners in progress, we will be able to achieve food sufficiency for consumption, raw materials for industrial growth and boost our exports potentials in a manner that will make the country achieve the target of being among the first 20 agriculturally developed nations by the year 2020.
Nigerian Mirror
Dec 26, 2014
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agricultue, NACCIMA, has bemoaned the pace at which the agricultural sector is growing considering the economic status of the country.
Speaking during the courtesy visit to the Minister of Agriculture and Rural Development recently, the President of the association, Alhaji Mohammed Abubakar said, “Given the position that agriculture holds to our national development as a source of food security; job creation; raw materials production for industrial growth; generation of foreign exchange for the country amongst other. The sector is yet to achieve its full potential.
While we are not unaware of the enormity of the challenges which impedes the full realisation of the foregoing, the Association is of the view that the Federal Government should not rest on its oars until we achieve the full realisation of the country’s agricultural potentials.
“As part of our advocacy on issues that will grow the development of trade and investment in particular and the economy in general, the NACCIMA has organised a One-Day Dialogue Session programme tagged, “National Dialogue On Agricultural Value Chain”, with the theme: “Enhancing Agricultural Export Through Adequate Financing”.
The programme was planned, with a view to getting stakeholders in Agribusiness to brainstorm on how to improve on Agriculture production towards self-sustenance and food sufficiency as well as Exports in Nigeria.
It was also used to expose participants to the Federal Government’s Agricultural Transformation Agenda, ATA. Arising from the programme, a communiqué was issued and has been forwarded to your good office for consideration.
During the dialogue, the association had identified peasant farmers domination of the sector as the reason for underutilization of the potential of agricultural sector.
It stated that the high interest rate, which constitutes a major impediment to financing the sector, has not been addressed.
The association also regretted an underdevelopment of agriculture value chain, which has resulted in exportation of agricultural raw materials to the developed countries. Abubakar stated that low investment in infrastructure defined the reason for the underdevelopment of the value chain.
He explained that value chain is the main aspect where Nigeria has comparative advantage, while advocating for urgent private sector initiative and intervention to complement Government efforts.
He decried the low support for seeds and fertilizer to farmers under the Growth Enhancement Scheme, GES, of the Federal Government.
According to him, in the GES arrangement, the governments should provide 50 per cent (Federal- 25 per cent, State-25 per cent) support for seeds and fertilizer to farmers directly and not through the general price subsidy.
Abubakar also stated the need for farmers to be insured so that bank loans can be guaranteed by the Central Bank of Nigeria, CBN.
As contained in the communiqué presented to the minister, the association stated that the Agriculture ministry should be encouraged to reduce the number of peasant farmers through aggressive empowerment.
It urged the government to increase the budget for agricultural to at least 10 per cent of the national budget, while canvassing for discontinuation of double digits interest rate on agricultural loans.
It further stated, “The Bank of Agriculture should be given same level plain of operation by raising up her paid up share capital to N500bn as did to BOI. At least N500bn intervention funds should go to Bank of Agriculture (BoA) as soon as possible.
“The Research Institutes such as RMRDC and FIIRO should be empowered to research more on how agricultural value chain could be developed and sustained.
Also, Research and Development arm of Private Sector should be able to access Research Grants to fast track R & Ds at all levels.
“Return on Investment in the Agricultural sector is low; government should help farmers with incentives that would enhance return on investment on agriculture “Government should provide incentives on imported farm tools and equipment to reduce their cost.
Also, importation of agricultural equipment and machinery should be zero duty and investment guaranteed; also insured by both investors and the government.
In addition, all agricultural products for export must be guaranteed and risk insured while finance-friendly banks underwritten by the NEXIM bank and or the CBN.
“Special arrangement needs to be made for women by the Bank of Agriculture, BOA, to aid their easy access to agricultural loan.
“Policy frame work that would encourage commercial farming should be formulated in order to have an easy transition from peasant farming to commercial farming.
“Government should encourage farmers by buying the farm produce from farmers while buyers buy directly from the government.”
Abubakar, who reemphasized the association’s readiness to continue partnering government towards the revitalization of agricultural sector, said, “With all of us working as partners in progress, we will be able to achieve food sufficiency for consumption, raw materials for industrial growth and boost our exports potentials in a manner that will make the country achieve the target of being among the first 20 agriculturally developed nations by the year 2020.
No comments:
Post a Comment