The Central Bank of Nigeria (CBN) has begun a gradual restriction of Foreign Exchange access for the importation of cassava and its derivatives, according to Governor Godwin Emefiele who spoke at a crucial meeting Thursday with state governors on ways of boosting agriculture sector.
The restriction is to help efforts at boosting output in the cassava sector, which Nigeria has huge potential for but is highly performing below capacity.
At the meeting also, Nigerian State governors committed to strongly support efforts at developing the country’s struggling agriculture sector as Governor Emefiele pleaded with them to make lands available.
CBN’s initiatives to enhance agricultural development are focused on boosting the production of identified agricultural commodities that have high growth enhancement impact, create jobs, improve capacity of industries, conserve foreign exchange has taken new dimensions.
Following President Buhari’s directives, the CBN has identified 10 key commodities including Rice, Cotton, Oil Palm, Tomato, Cassava, Poultry, Fish, Maize, Cocoa and Livestock/Dairy as key enterprises to be developed along the value chain to achieve the above stated goals.
Emefiele noted that Nigeria is the world’s largest producer of cassava tubers with 53 million mt per annum. However, the yield per hectare averaging 20 tonnes/ha is very low compared to other jurisdictions. In addition, the country imports cassava derivatives with over $600 million each year.
The cassava initiative of the CBN is to improve cassava productivity, stabilize prices and encourage local processing to generate employment, among other collaborations with states.
“We have also began to restrict foreign exchange to import of cassava and its derivative. Those who want to import cassava, starch ethanol and all other derivatives into Nigeria may not get funds,” Emefiele stated.
In his address, Emefiele said Nigeria’s fragile economy, coupled with rising poverty level present very challenging situation even though the country’s macroeconomic variables remain strong.
Reeling out CBN’s investments and commitments in the agriculture sector, he told the governors that the time to develop that sector which has great potential for economic growth and foreign exchange earnings is now.
Eighteen governors attended the meeting include those of Ekiti state, Sokoto, Adamawa, Katsina, Zamfara, Imo, Edo, Benue, Lagos, Bauchi, Anambra, Jigawa, Kebbi, Ogun, Borno, Gombe, Adamawa, and Osun.
He narrated instances of how the recent border closure has helped local farmers and encouraged more of those policies.
Emefiele’s words, “In the past three months, we have made substantial progress but we need to interact more with our State Governors to sustain the momentum.
“The ultimate objective is to make our States economically viable through enhanced investments by the private sector which would in turn create more economic opportunities at the sub national level, engage our teeming youths in meaningful enterprises, improve internally revenue base for states to meet the developmental expectation of its citizens.
“This is in addition to what we are doing through Anchor Borrowers Programme to support small holder farms in our rural communities.
“For these investments to bear fruits, the support of the state governments is needed through land, and other infrastructural amenities,” he noted, urging the governors to appoint vibrant and hardworking people as their commissioners of agriculture.
Chairman, Nigeria’s Governors forum Kayode Fayemi stressed that the agriculture sector remains the fastest vehicle to achieve the accelerated growth, noting that the governors are zealous to work with the CBN.
Borno state governor, Babagana Zulum requested for deliberate measures by the government to encourage local investors, particularly into the devastated North East and also called for a lengthening of the Irrevocable Standing Payment Order with the CBN to enable the states stay afloat.
“Another issue that I wanted to raise is that of long term repayment schedules, with respect to state government especially in Borno state.
“We are battling with security situation and there are a lot of opportunities from the CBN that the issue of the ISPOs we are singing within a short range, if care is not taken, the state governments cannot perform their major responsibilities.”
He raised the convent that in the ravaged North East is no longer attractive to investors. “I think the CBN also needs to look at the possibility of enhancing the existing structure to allow state government participation to drive some the processes which are necessarily meant to be driven by the investors.”
He also said there is need to attack the root cause of insurgency in the North East without which there may not be peace in the entire country.
Kebbi State Governor, Abubakar Atiku Bagudu said CBN is a demonstration of possible successes if the institutions do the right thing.
“We must find money for agriculture because it is quite expensive,”he noted.
Benue State Governor, Samuel Ortom, said a major challenge to the country’s agriculture sector is lack of basic infrastructure, particularly power to develop the value chain and called on the CBN to also give attention to the electricity sector.
Onyinye Nwachukwu, Abuja
