By Samuel
The Chairman, Agricultural Colleges and Institutions Committee of the Federal House of Representatives, Alhaji Munir Babba Dan Agundi, says agriculture remains the best option for Nigeria to regenerate its economy.
Agundi, who represents Kumbotso Federal Constituency of Kano State, made the assertion on Monday during a stakeholder inception meeting of the Kano Agro-Pastoral Development Project (KSADP) at the Center for Dryland Agriculture, Bayero University, Kano.
The meeting was attended by the Sasakawa Africa Association (SSA), a partner of the KSADP, and representatives of research institutions and the private sector.
Speaking during the meeting, the chairman reiterated the importance of agriculture to Nigeria’s economic buoyancy.
He said, “While other countries are seeking what to fall back on in these times of global economic recession, we (Nigeria) have nothing to fall back on other than agriculture.
“Agriculture is our major strength, so we must pay serious attention to it – to activities such as this. The Kano Agro-Pastoral Development Project working with Sasakawa will help us to revive our economy.”
The representative explained that agriculture would not only help the country to diversify its economy but also ensure food security and poverty alleviation owing to its vast arable land and large farming population.
Agundi restated the commitment of the National Assembly to ensure that the Federal Government puts in place sound policies that would ensure sustainable agricultural and economic development.
He also lamented the problem of policy inconsistency in the country, adding that it has been a major setback to the economy.
On his part, the State Project Coordinator of KSAPD, Ibahim Garba Muhammad explained that the cooperation between both entities seeks to develop targeted crop value chains.
Muhammad, who was represented by the KSADP’s Crop Specialist, Abdullahi Raba, added that the partnership would also help to develop rural infrastructure, promote marketing enterprises and build the capacity of farmers.
“In this regard, our project will count on engagement with the private sector so as to deliver on our interventions and eventually achieve the objectives of eradicating poverty, creating more jobs and ensuring food security in Kano,” he assured.
In his remarks, the Country Director of SAA, Prof. Sani Miko, explained that the meeting was convened as part of measures to ensure that the KSADP/Sasakawa partnership started on the right footing.
“We want to ensure that we do not disappoint the smallholder farmer. We will make the farmers more functional by not only giving them technical support but also building two-way confidence and trust,” he said.
Among other things, the meeting agreed to arrange a stakeholders’ implementation planning meeting to assign specific roles and responsibilities to partners, share relevant documents for better understanding of the project and to explore ways to integrate e-extension in the project.
By Samuel
The agriculture sector will receive the biggest financial boost when the global Corona Virus (COVID-19) pandemic eases out by September, financial experts have said.
This point was taken at a virtual investment conference hosted by financial service corporation, EFG-Hermes Holding.
The experts at the webinar also named other sectors including; digital payments, health, consumer goods and capitalised financial institutions.
Head, Frontier research, EFG-Hermes, Kato Mukuru noted that the agriculture and food processing industries, among others, will become more attractive to investors.
He stated that with the lockdown and crashing crude oil prices, investors have now begun to look inwards to diversify the economy through other sectors with agriculture being the most profound.
The crash in the prices of crude oil has made the government to intensify diversification efforts by supporting investments in agriculture and processing industries, he said.
AgroNigeria had recently reported the various schemes by the Federal Government to support and upscale agriculture amid the pandemic, including the recent approval of the N13 billion fund for pest control.
According to Mukuru, “The good thing about COVID-19 is that it has forced new sectors to come through.
“More local and foreign investors will be going into food cultivation, processing, storage, and distribution to take advantage of the expansion in the industry,” he added.
Financial institutions and lenders have become deficient and farmers alike will bear the brunt as access to agricultural credit facilities will be affected.
However, a solution to the challenge will be achieved, as Mukuru noted that Nigeria’s biggest financial institutions would also attract new customers and investments.
by DANIEL ESSIET
With strong growth spurred on by rising investments and exports, the agriculture sector is expected to be one of the key propellants of national economic growth this year. However, businesses are awaiting new incentives. DANIEL ESSIET writes.
Despite numerous risks, the agriculture sector is expected to reap bigger fruits this year with more investments implemented, making it one of the key drivers of economic growth.
The sector has received a major boost over the past two years, thanks to a strong focus by policymakers on food and jobs.
To collaborate this, the International Monetary Fund (IMF) projects that Nigeria’s real Gross Domestic Product (GDP) will rise by 2.1 per cent last year to 2.5 per cent by this year.
The African Development Bank (AfDB) Group also predicts that the nation’s real gross domestic product (GDP) will grow by 2.4 per cent this year as implementation of the Economic Recovery and Growth Plan gains pace.
One sector that will contribute to it is the expected surge in agriculture activities. Experts believe Nigeria has rich natural conditions to host a variety of valuable crops and agriculture will remain a critical sector for the economy.They anticipate agriculture would expand due to growth in rice production and other agricultural activities.
For instance, analysts expect Nigeria to produce more tonnes of rice next year through the Central Bank of Nigeria’s (CBN’s) Anchor Borrowers Programme. Output will rise in fruits, vegetables, cereals, cashew, cocoa as well as livestock, which are critical elements for domestic consumption and exports.
This would hinge, however on the government’s ability to maintain a thriving business environment, driving growth and facilitating an impressiveeconomic diversification. Key investments in new processing facilities are expected to continue driving the sector’s expansion.
The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Dr Muda Yusuf, noted: “The monetary value of agriculture output has been on the upward trajectory, rising 40 per cent quarter-on-quarter to N5.41 trillion between July and September from N3.86 trillion between April and June, compared with N3.60 trillion in the first quarter.
“The CBN, like it did in 2019, will maintain status quo by not relenting in supporting the sector with much-needed funds in ensuring that the wide gap between local demand for food and supply is bridged.”
On the performance of the sector, the DG projected improved credit flow to agriculture on the back of proposed increase in deposit money banks’loans to deposit ratio to 70 per cent.
Yusuf expressed the view that prolonging closure of the land borders would further add impetus to agricultural output this year.
The President, Federation of Agricultural Commodities Association of Nigeria (FACAN), Dr Victor Iyama, said agriculture will remain one of the most important sectors for business and economic growth.
He however, added that value-added food manufacturing is also important to penetrating high potential markets, where a lack of infrastructure and inefficient logistics can create delays that cause a significant proportion of fresh produce to spoil.
He called for investment in logistics and grading centres, adding that initiatives of this kind would also help to reduce wasted produce, levels of which can be as high as 40 to 50 per cent due to the lack of supply chains linking the field to the consumer.
For small growers, he said infrastructural support is critical because they lack the capacity to pack and grade their produce in line with market requirements.
According to him, improving production capacity will also allow them to create more opportunities to increase income for local farmers and meet the requirements of high-value export markets.
He said the establishment of clearer quality standards would help to drive exports to new markets.
Iyama said the association is trying to improve the value of the nation’s agro exports by applying safe and sustainable agricultural practices and improving production facilities.
Private sector’s response
The Managing Director, Farmcrowdy, Kenneth Obiajulu, said agriculture is the solution that can feed a growing Nigeria and that innovation is the key.
Obiajulu said food aggregation, processing, and distribution facilities and infrastructure are critical aspects of building a consistent supply of local foods.
He said Farmcrowdy will support local farmers, producers, by allowing them to access larger and more diverse markets than they could as individual producers. This in turn improves access to fresh, healthy food for a wide range of consumers.
He said his organisation is supporting projects that will make a difference for farmers economically.
He said the projects would help farmers export more and secure some market access for a lot of products.
The Country Manager, OCP Africa, Caleb Usoh, said supporting agriculture with focus on enhanced private sector investment and key value chains will ensure economic diversification and boost food security. He said OCP Africa will support Nigeria with fertiliser plants.
He said sustainably increasing food production will be possible only with a balanced and rational use of fertiliser, saying this will ensure a decrease in imports of NPK fertiliser, which combine three macronutrients: Nitrogen, phosphorus, and potassium.
Through the plants, he said OCP Africa has set ambitious goals to reach more farmers.
In addition to training local farmers in advanced, modern agricultural techniques to rev-up yearly output, OCP Africa has initiated several other programmes that have massively upgraded the scales in terms of sustainable agriculture policy and food security.
To work with farmers to contribute to unlocking Africa’s vast agricultural potential, he stated that the company launched its ‘Agribooster Offer’ aimed at boosting food production in the country.
The ‘Agribooster Offer’s initiative for food crops provides farmers with support for every aspect of the agricultural value chain. Through this, OCP Africa connects farmers to financing and insurance, working with local extension agents to train them on proper fertiliser use, collaborating with other providers to ensure they have the right fertiliser and other input.
He said OCP Africa believes on empowerment of farmers and will directly towards increasing prosperity and helping Nigeria tackle its worsening challenge of poverty.
Foreign firms to be involved
The private sector, including domestic and foreign companies, has helped to change the economic structure.
Along with local private enterprises, many foreign firms will be entering the agricultural sector. Over the past few years, many foreign companies have entered the Nigerian market to engage in agricultural investment projects, investment is largely focused on producing and processing animal feeds, and farm produce.
Their investments in high technologies and production scale will help the agriculture participate in the global value chain. Some other foreign companies have also inked import deals with local businesses. Factors such as a large domestic market and strong development of the export market thanks to free trade agreements, as well as the encouragement of the government will encourage and promote enterprises to invest in agriculture effectively, safely, and sustainably.
High-tech agric devt
Some areas are going to emerge as a new hub for high-tech agriculture. In few areas of the Southwest, there are efforts to boost agri tourism development, growing high-tech agricultural products, helping it to attract many domestic and foreign investors. Several high-tech agricultural projects have been granted investment decisions for implementation.
Farmers expected to export more agric products
Iyama said there were efforts to boost agricultural exports from the country to other parts of the world. Notwithstanding, agro exports are expected to face difficulties this year, as there will be increased competition in the global market. The challenges include a forecast reduction in world economic growth this year, while many countries would focus on agricultural development. Therefore, Nigeria’s exports of agricultural products might face fierce competition.
Large importers, such as the US, EU, China, Japan and South Korea, have promoted the protection of agricultural products by setting standards on quality and food hygiene and safety, while requiring traceability. The trade war between the US and China will also affect the export of Nigeria’s agricultural products.
Challenges
On the aggregate, experts said foreign direct investment (FDI) inflows into agriculture are still small in terms of project size and proportion of investment capital compared to the total FDI of the country. Risks remain significant. Domestically, slower progress in strengthening logistics infrastructure have undermined growth prospect, creating large sector liabilities. External risks include escalating trade protectionism.
Yusuf’s concern is that the cost of doing business is very high. He attributed it to poor infrastructure, multiplicity of levies, excessive regulations, among others.
Notwithstanding, the government’s goals for the sector, experts said production will be threatened by growing pressures, including a fast-growing population and the effects of climate change.
Like last year, increasing insecurity caused insurgent activities meant some agricultural enterprises had to hire security, increasing costs and taking the focus away from improving production techniques.
The sector also remains split between small scale farmers with artisanal growing methods, and large-scale production using modern techniques and consolidated expanses of land. Bridging these two sides of the industry will require better integration.
In recent months, weather-related disasters linked to climate change have contributed to the rise in food insecurity.
Flooding in some parts of the country has disrupted the volume of agricultural production, exposing farmers to high vulnerability and causing fatalities.
Another issue is the high rates of urbanisation that has reduced the amount of arable land available for farming. Across the country, the economy has witnessed a substantial spike in property development into land traditionally used for farming.
Foreign investors still see a gloomy outlook towards the investment environment in the country as various reports indicate fears about unclear economic conditions.
Improving infrastructure
No fewer than 10 million smallholder farmers produce 70 per cent of the food consumed in the country. There is a need to ensure that these farmers are equipped with the appropriate technologies, knowledge, and skills to meet the increasing l demand for sustainable food.
For watchers, the nation’s economic productivity is still low mainly due to small scale agricultural production. At present, the power supply-demand gap is hampering food production and sustainable economic growth.They observed that infrastructure deficiencies and an emerging skills mismatch driven by underlying structural bottlenecks are impacting on the quality of its human capital, productivity and innovation capacity.
Stakeholders advocate actions and policy reforms aimed at addressing bottlenecks in energy, transport and water infrastructure. This, they believe, will support the sector to attract higher value-added investments, enhance the domestic private sector’s capacity to penetrate the regional market and improve public service delivery.
Stakeholders believe the nation’s ambitious agenda to transform into a high income country requires a new growth model that relies on enhancing productivity and innovation.
Iyama believes digital solutions can address some of the key challenges faced by farmers, from creating safer farm produce to boosting exports and improving farmers’ living standards. ‘’We encourage partners to join our efforts in applying high-technology and smart agriculture for our farmers,” he said.
By AgroNigeria
The Federal Government has revealed that women’s and youths’ participation in agriculture is one of its deliberate efforts toward tackling unemployment and improving the economy of Nigeria.
Minister of State, Ministry of Agriculture and Rural Development, Hon. Mustapha Shehuri restated this during a presentation of cash gifts and farm inputs to beneficiaries in Funtua, Katsina State.
Hon. Shehuri disclosed that Nigeria in previous years spent about a trillion Naira yearly on food importation but the present government has resolved to harness the rich human resources.
He pointed out that the drive of the government to restore agriculture, was crucial in boosting the economy of the country, discourage food importation and consequently, tackle unemployment by engaging the youth.
According to him, the nation’s inability to feed its people subverts its corporate existence, hence, the need to create opportunities to tackle the daunting unemployment rate in the country.
On his part, Speaker of the House of Representatives, Femi Gbajabiamila in his speech delivered by Ado Doguwa Kano lauded the efforts of Muntari Muhammad and urged the youths and women involved to seize this opportunity.
The items which were donated by Muntari Mohammad, Chairman House Committee on Agricultural Production and Services, Representing Funtua/ Dandume Federal constituency, for SMEs in the community included 140 motorcycles, 50 sewing machines, 1200 bags of fertilizers, and 600 bags of grain for the youths, women, widows and affected families.
BY SAHARAREPORTERS
The Bangladesh High Commissioner to Nigeria, Mr Shameen Ahsan, has announced plans by the country and Nigeria to sign an agreement in the area of agriculture.
Ahsan, who spoke at a Nigeria- Bangladesh business forum in Lagos, said there was the need to create a better link to foster commercial activities between the two countries.
According to him, “It is very important to interact with members of the civil society to further create a better understanding between the two countries and dispel misconceptions, while I try to make the country familiar in front of the Nigerian audience.
“We are currently working on signing an agreement on cooperation, in the field of agriculture and that would provide key platform to share best practices between the two countries.”
Also speaking, President of Lagos Chamber of Commerce and Industry, Mr Babatunde Ruwase, disclosed that both nations had expressed mutual interest to expand bilateral relations overtime.
He said, “The Bangladesh Tariff Commission in 2014 prepared a feasibility study for the benefits of signing preferential trade agreement with African states and recommended that Nigeria along with Mali was the most promising countries for signing such agreements.
“We therefore urge Bangladeshi businessmen to invest in agriculture, ICT, food processing, garment production and industrial sectors of the economy.
By Olusola Adeoye
The Senate on Thursday urged the Federal Government grant tax holidays to investors in the solid minerals sector to enhance investment.
It equally called on the executive to partner with states, local governments and the private sector in infrastructure development to promote private investments in the country.
It further urged the Federal Ministry of Mines and Steel Development to formalise the operations of illegal miners is parts of the country so as to generate additional revenue through taxes.
It also sought zero tariffs for importation of agricultural and agro-processing equipment.
These resolutions followed a debate on motion titled: “The need for continuous implementation of policy reforms for the diversification of the Nigerian economy through the Agricultural and Solid Minerals Sectors.”
The motion was sponsored by Sen Ibikunle Amosun (Ogun Central) and 59 other senators.
Amosun, in his lead debate noted that available statistics show that the contribution of crude oil and natural gas to the nation’s Gross Domestic Product (GDP) declined from 14.95 per cent in 2011 to 9.61 per cent in 2015.
He said however agriculture contributed 23.35 and 23.11 per cent, respectively, to the GDP during the same period.
He insisted that the country was endowed with a wide variety of solid minerals in almost all states of the federation.
He said also that the solid mineral sector ranked second only to the agricultural sector as a source of foreign exchange earner for the country.
Amosun added: “Further aware that in the last four years of the administration of President Muhammadu Buhari the government has introduced a number of broad and sectoral policies intended to harness Nigeria’s Agricultural and solid minerals potentials in a bid to diversify the Nigerian economy from a mono-economy largely dominated by crude oil to other viable sectors;
“Acquainted with the fact that some of these policies include the Anchor Borrowers Programme, the Livestock Transformation Plan, Presidential Task Force on Rice and Wheat production, Presidential Fertilizer Initiative and the adoption of a Solid Mineral Development Strategy to achieve enhanced growth through exploitation of assessed abundant solid mineral resources in the country.
“Convinced that the laudable policy initiatives by the Federal Government to reposition the Agricultural and solid mineral sectors to contribute to sustainable development of the Nigerian economy needs to be ramped up and taken advantage of for optimal utilisation for the diversification of the economy; and
“Convinced further that the Agricultural and solid minerals sectors holds the secret to the current efforts by the Federal Government to diversify the Nigerian economy and also lift 100 million Nigerians out of poverty in the next ten years.”