• Tuesday, February 11, 2025
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Re-examining the National Egg Production scheme

N10bn egg production fund offers lifeline for farms’ expansion

Egg Production in Nigeria

In a bid to diversify the revenue base of the economy through agriculture and ensure food sufficiency, the Federal Government is making efforts to ensure that the country boost its egg production through the National Egg production (NEGPRO) scheme.
The NEGPRO scheme is an initiative of the government aimed at increasing the output of egg production in the country to 50 million table eggs daily by 2018. It is also aimed at creating about one thousand jobs at full capacity, empower farmers and alleviate poverty.
Audu Ogbeh, Minister of Agriculture and Rural Development while signing the Memoranda of Understanding pact with the managers and consultants of NEGPRO scheme, said the scheme become necessary as a result of the school feeding program the Federal Government is planning to commence, in which every child will be given an egg a day or at least three eggs a week.
Eggs which contain protein are well favoured across the board in Nigeria, especially by the burgeoning middle-class and children. Eggs likewise serve as a staple for young Nigerians between the ages of five and 40, which make up over 60 percent of the country’s 170 million population.
Stakeholders say that the scheme will increase the contribution of the poultry sub-sector to the country’s GDP thereby increasing government revenue.
“We commend the government for this laudable project which, we believe, will change the face of the poultry industry in Nigeria” Clement Okonjo, former zonal vice president of the Poultry Association of Nigeria and chairman of Kikachukwu Agricultural Enterprises Limited, said in a message to the management of Tuns Farms.
According to Okonjo the successful implementation of the NEGPRO scheme will boost the economy of the country and build up the poultry sector in Nigeria.
Currently, the country needs more than a million metric tonnes of poultry products annually to meet local demand.  Official figure shows that local farmers are only able to produce 300,000 metric tonnes, leaving a wide gap of more than 1.2 million metric tonnes.
Reports have shown that many school-aged children, especially from poor homes, do not attend school, few who attend do so mostly on empty stomachs.
To attain the objective of the NEGPRO scheme, the government will provide eligible Nigerians the opportunity to participate in the poultry business thereby ensuring continuous production of eggs.
Eggs produced from NEGPRO will be used to service the national school feeding program, sold in structured open market as well as support egg powder processors across the country.
Under the NEGPRO scheme, accredited layer farmers will produce eggs with input supplied by approved NEGPRO entrepreneurs in the state. The entrepreneurs will, in turn, off-take the eggs that are produced.
Structurally, the scheme requires that accredited farmers to set up structure and cage for layer birds. The layer farm pens and structures are then verified and certified by NEGPRO officials in their respective state.
Following the approval, the NEGPRO farmer becomes eligible to collect day old chicks, feeds and some stipend to run the farm. With the input, the farmers commence poultry farming from day old chicks through to the laying stage.
The eggs that are produced daily go the federal government through the government approved entrepreneurs in each state. Farmers return on weekly basis such that eggs produced from their individual farms are taken up by the approved entrepreneurs. The program requires that the entrepreneurs balance the account of individual farmers and share profit with the farmer accordingly.
The agric ministry formulates the national policy for procurement of cages and climatically controlled housing.  The ministry also registers and approves hatcheries and feed mills for participation in the scheme.
In addition, the ministry strengthens the technical committee in each state of the federation. This committee will be saddled with the responsibility of visiting the participating farms in each local government areas thereby equipping them with the necessary technical assistance needed towards a successful production cycle.
Finance
Funding for the scheme is being finance by the Bank of Industry (BOI). The bank is the financial institution appointed to manage and disburse the N25 billion earmarked for the scheme. The sum of N25 billion is going to be accessed from the Central Bank of Nigeria Anchor borrowers Scheme.
Role of Tuns Farms
To support the current diversification drive and mitigate the impact of oil price, the Federal Government entered into an agreement with Tuns Farm to be the manager and the consultant of the NEGPRO scheme.
As the consultant to the ministry and scheme, Tuns Farms will recommend eligible entrepreneur to access facility of N25 billion under CBN Anchor Borrowers Scheme through BOI.
The company will also endorse loan requirements and application of entrepreneurs.  This is to keep applications from the entrepreneurs within size and scope of their business and relevance to the scheme.
Tuns Farms will also develop and market customized and standard feed concentrate in collaboration with relevant regulatory agencies for the purpose of this Scheme to ensure quality and uniformity of result.
Other roles of the company will be to recommend standard specification and costing for the scheme, monitor activities of entrepreneurs involved in the scheme. Tuns will also select entrepreneurs and stakeholders across the country for recommendation to the technical committee for final ratification and appointment to participate in the scheme.
These entrepreneurs and stakeholders will handle production/purchase and supply of inputs for the scheme such as day old chicks, feeds, drugs and vaccines. To enable the Nigerian public, especially the farmers, to participate in the programme, Tuns will promote the program awareness through electronic and print media as well as organize training seminar across each geopolitical zone at least biannually.
Economic impact
Without doubt, the implementation of the NEGPRO scheme will make an enormous impact on the economy and the lives of everyday Nigerian. The creators of the scheme envisaged that the scheme will enhance food security, empower poultry farmers nationwide, create jobs, lift the economy and feed the Nigerian school children.
The target of the NEGPRO scheme is the production of 5 million eggs per day by 2018. This level of production will, without doubt, enhance Nigeria’s food security.
By setting up the NEGPRO scheme and publicly laying out requirements for participation, the federal government truly seeks to empower poultry farmers from all over the country. Providing the inputs and a ready market by buying back the eggs produced is a win-win situation for Nigerian poultry farmers.
Josephine Okojie

Nigeria's leading finance and market intelligence news report. Also home to expert opinion and commentary on politics, sports, lifestyle, and more

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