The Agriculture Promotion Policy (2016 to 2020) was drafted to drive growth in the sector, but as it terminates this year, it appears to be a consensus that the current policy to a large extent did not deliver on its ‘lofty propositions’.
For Emmanuel Ibru, chairman, Plantation Owners Forum of Nigeria (POFON), “The agric policy is fantastic on paper, but not properly implemented, due largely to inadequate funding for the agric sector.”
Summarising Nigeria’s deficit in food production, data from the policy document showed a 20.14 million metric tonne deficit across 13 major crops and 60 million poultry bird deficit.
With increasing emphasis on local food production, there has been more agricultural activity, which ordinarily would indicate more food is being produced. However, there is no official data to ascertain how much progress has been recorded year-on-year, since the policy was launched.
“Not sure the plan was adhered to,” said Ade Adefeko, chairman, Agric Trade Group, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). “Suffice to say food production has been on the increase but storage has been an issue as well as logistics to move same while again not having a national grains or food reserve.”
Turn of Cassava after Rice?
Segun Adewumi, national president, Nigeria Cassava Growers Association (NCGA), described the APP as a good foundation towards agricultural prosperity in Nigeria, but had some reservations about its implementation that he hopes would be improved in any future policy.
For him, however, “it was agenda by agenda; they started with rice and have now ventured to cassava. During the time of rice I am sure they gave the right people attention, now they have seen the economic potentials of cassava and are listening to us.”
Adewumi who says his association is now getting attention from the Central Bank of Nigeria, notes that some of the lapses the current agriculture policy failed to address border largely on the cost of production in Nigeria.
“Cost of production is higher than anywhere in the world,” said Adewumi, as a result, when cassava derivatives are produced, they may not penetrate the international market owing to uncompetitive pricing.
He also described transportation as another challenge, as according to him, Cassava has 70 percent water content so when transported over a long distance could drive up costs to possibly double the raw cassava’s value.
“In another one or two years, we hope Nigerian cassava will be cheaper than what obtains in the international market,” he hopes.
Palm Oil, Poultry producers want better operating environment
“No neighbouring country has the capacity to feed themselves let alone having the capacity to export,” said Ibru, POFON’s chairman. He further explained that Nigeria’s neighbours import to augment their production, and if that is the case, “how come they can afford to export to us?”
The narrative from Ibru is that palm oil is often imported into neighbouring countries, then assigned Certificates of Origin that claim they are produced within West Africa, thus seeking to benefit from the low tariff in bringing same into Nigeria under the ELTS. The result: local palm oil producers struggle to sell their made in Nigeria palm oil.
Even with the border closure, Ibru says there has not been any significant reduction in the volume of palm oil coming into Nigeria illegally.
On his part, Ezikiel Ibrahim, president, Poultry Association of Nigeria (PAN), says the “agric policy has done well, but we need to fine tune it.” More efforts need to be put into expanding production and possibly start exploring exportation.
In fact, he says “we have to carry our neighbours along because border closure cannot be permanent. It shouldn’t exceed one month as the negative impacts will likely outweigh any positive ones.”
While Ibrahim thinks the prospects for 2020 are good, he considers the economic dynamics to be a bit confusing and challenging. “When you want to expand growth, and at the same time increase taxes, it may boomerang,” he said.
He explained that when taxes are increased, somebody that is planning expansion would also be considering how the higher taxes would affect them.
Government, he says, should create a more enabling environment that will favour local producers. “If production is increased, there will be employment opportunities leading to more revenue for government through taxes,” said Ibrahim.
New policy underway?
Kabiru Ibrahim, president, All Farmers Association of Nigeria (AFAN), exclusively informed Agribusiness Insight that a committee has been set up by government to draft a new agriculture policy that will incorporate the Agricultural Transformation Agenda (ATA) and the Agriculture Promotion Policy (APP).
“People are working on it already and we are there as stakeholders,” Ibrahim said in a phone interview.
He also told Agribusiness Insight that Nigeria “needs to scale up production, because we have this opportunity of exporting through the African Continental Free Trade Area (AfCFTA).”
The APP, which for all intent represents the country’s agriculture roadmap, highlighted “food security at national level is achieved by a combination of domestic food production, imports and strategic storage”.
Out of these three sources expected to drive food security, only one (primary production) is functional, and even so, barely scratching the Surface.
As contained in the APP, Nigeria required 4.7 Million Metric Tonnes (MMT) of wheat but only produced 60,000 MT; Maize, required 7.5 MMT but produced 7MMT; Soya Beans, required 750,000 MT but produced 600,000 MT; Tomato, required 2.2 MMT but produced 800,000 MT.
Nigeria also had a demand of 39 Million Metric Tonnes (MMT) of Yam, but only produced 37 MMT; required 8 MMT of palm oil but produced 4.5 MMT; required 3.6 MMT of Cocoa but produced 250,000 MT; required 7 MMT of Sorghum but produced 6.2 MMT. Also, Nigeria required 2.7 MMT of fish, only producing 800,000 MT; required 200 million chickens, but only producing 140 million, at the time of the report.
CALEB OJEWALE
