Zenith

  • Latest News

    Sunday, February 26, 2012

    The Food Basket Is Empty



    Among the challenges confronting northern Nigeria, food is probably the most serious. Inadequate food production has resulted in food shortages and soaring prices. It is not surprising that many people go to bed daily without food.
    Yet, the region is richly endowed with natural resources and huge population, and enjoys comparative advantage in agriculture. It occupies over 70 percent of the country's land mass of over 23,000 square kilometers and a large proportion of it is arable and can be used for all year round agricultural production.
    The North is also blessed with a rich variety of ecological base that is suitable for production of root crops and tubers, grains, rice. corn, ground nuts, cocoa, coffee, cashew, gum Arabic, shea butter, cotton, fishery and livestock. In addition, there are the two major rivers, Niger and Benue, lakes and dams among others and a large active population that can sustain a productive and profitable agricultural sector.
    Experts say if properly harnessed, the agricultural sector alone can support self-sufficiency in food, provide raw materials for the industries, provide employment for the people and also generate foreign exchange through exports.
    It is a common knowledge that before the discovery of oil, Nigeria depended largely on agriculture for her developmental needs and the north was a major contributor. Apart from providing employment for more than 70 per cent of the population, agriculture contributed about 50 per cent of the GDP.
    In the first republic, the budget of northern region was funded largely by agriculture. Leaders of the region developed a blueprint for industrial development through investment in agriculture. This was evident in the emergence of industrial. commercial and manufacturing concerns that became the pride of the north. The thriving textile industries in Kaduna, Kano and other cities, ground pyramids and other business conglomerates that provided means of livelihoods for thousands of people were outcome of meticulous planning, prudent management of resources and diligent implementation.
    Subsequent leaders in the region failed to build on the foundation bequeathed by their predecessors or even sustain those legacies. Lack of continuity has resulted in pervasive poverty, poor infrastructural base and general underdevelopment
    Military incursion into the polity and centralization of decision making, abrogation of regionalism, and in flow of petrol dollars, policy inconsistency have been blamed for collapse of agriculture in the region and the country. For instance, in 1967, there were only six states following the creation of states, they are now 19 states. Other regions were also broken up. This ended the spirit of competition among states and everybody started queuing for federal handouts.
    With oil playing dominant role in the economy, farming became unattractive; consequently, the nation has become net importer of foods like rice, sugar, corn, livestock, beans, fish and other finished products, some of which the country can conveniently produce and even export.
     Recently, the CBN revealed that the country currently spends around $36 billion annually on food importation, just as it is emerging as a dumping ground for sundry agricultural products.

    What went wrong?
    Everyone talks about improving the agricultural sector. It has been a subject of countless seminars and workshops by government, policy makers and experts. It has gulped billions of naira, yet agriculture has virtually stagnated The neglect in the agricultural sector has been blamed for the current soaring cost of food in the country. It would appear that the more we talk about it, the less is achieved.
    Nigeria has moved from major exporter of agricultural produce to net importer of food. As it is for the country so is it is for the north.
    In over 12 years ago of the democratic rule, the country's agriculture sector is yet to gain its lost glory. For instance, every year the federal government and state governments spend a huge amount of money to buy fertilizer for farmers. Unfortunately this important input is not easily made available to farmers who need them and on timely manner. The federal and state governments have politicized the distribution and they use it as patronage to their political supporters.
    It was reported early this year, that dry season farmers in Zamfara State could not access fertilizer because the then state governor allegedly directed that fertilizers should not be sold until after the elections, which he eventually lost. The farmers resorted to buying manure or procure fertilizer in the black market.
    A similar situation also applied to other inputs like seedlings, tractors. advisory services or extension services.
    Few states care to allocate enough funds to agriculture. It is not unusual for some states to refuse paying their counterpart funds for projects or give zero allocation to capital projects. With this development, what is available goes for recurrent expenditure.
    It is in this state of confusion that farmers operate in many parts of the north.
    From poor implementation of policy to corruption, from lack of commitment by the political leadership to mismanagement of funds, agriculture has all but stagnated.
    Till date there have been over a dozen intervention programmes initiated by the federal government to improve agriculture and alleviate poverty in the states like the Operation Feed the Nation, Green Revolution, River Basins Development Authority, Directorate of Food Rural Roads and Infrastructure (DFRRl), Fadama, National Special Food Security programme, yet the extent to which these programmes have succeeded are debatable.

    Way forward
    CBN Governor, Sanusi Lamido Sanusi, has advocated a paradigm shift from mere production to value chain approach. Delivering a lecture at the Northern Economic summit on agenda for Economic and Social Transformation of Northern Nigeria in Kaduna early this year, Sanusi said value chain approach takes into account all aspects of agriculture namely production, processing, storage and marketing.
    He said the value chain approach has many challenges, which allows value addition, adding no country or region can develop her agriculture to full potential by relying on primary produce.
    He said, "With value addition, post-harvest loses are reduced to the barest minimum, farmers earn more income-from their endeavour and food security is better enhanced as it removes the effect of seasonality in the food supply chain and promotes export. Second, it promotes industrialization, the growth of agro-allied and agro-based industries. For instance, with quantum of tomatoes produced in Zaria-Kano axis, one would expect tomato processing plants to be sited there. Third, the value chain approach reduces the perception of risk particularly from the financiers as it gives them the freedom to choose which aspects of the chain they would want to finance and develop appropriate risk sharing and mitigation mechanism in partnership with government.
    He said along with infrastructure, we must tackle the issue of access to markets. We need to bring back marketing boards and standards organizations and also improve the capacity of the Abuja Commodity Exchange to play its critical role in facilitating the realization of value from agricultural commodities. He suggested the creation of Agricultural infrastructural corridor concept similar to experiences of Tanzania, Mozambique, Ghana and Ethiopia. He said a practical approach to domesticating these experiences would be for two or more contiguous states in the north to carve out an area and build an agricultural growth corridor. He said these corridors apart from being provided with basic supporting infrastructure like rural electricity, roads, water, security should also be made to enjoy the full status of export processing zones including tax incentives
    He said the key lessons from the experiences of these countries show that it requires commitment to agriculture by the political leaders of the region and country, special delivery vehicle that would ensure that the programmes to transform agriculture receive the required focus and effective attention and creation of enabling environment for private sector participation.
    He stressed the improvement in the roads transport and railways to help evacuate farm produce from farm centres to urban markets and massive investment in education, adding that modern agriculture would rely on the application of technology.

    Financing
    Finance plays a critical part in any economic development. This is usually a problem in Nigeria. Massive investment in the agricultural sector is required to bring it to standard. Sources of funds include budgetary allocations to states, banks and other development finance institutions. The most ambitious so far is the N200 billion Commercial Credit Scheme. The scheme was established in 2009 by the Central Bank of Nigeria as the N200 billion Commercial Agricultural Credit Scheme in collaboration with the Federal Ministry of Agriculture and Rural Development. The goal is to promote commercial agricultural enterprises in the country. The CBN has so far released over Nl00billion for disbursement to hundreds of project promoters including some 18 state governments.
    It is expected that the state governments will avail their small holder farmers access to this loans, instead of the so-called commercial farmers many of who exist in brief cases.
    • Blogger Comments
    • Facebook Comments

    0 comments:

    Item Reviewed: The Food Basket Is Empty Rating: 5 Reviewed By: BrandIconImage
    Scroll to Top