• Tuesday, October 22, 2024
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Value chain process for zonal agric development

Customs releases guidelines for implementation of zero duty on food imports

The huge potentials inherent in agriculture for job and wealth creation, especially with regards to the Nigerian nation have never been in doubt. Policy flip-flops and the neglect of the sector over the decades since the discovery and exploitation of crude oil is what has compounded our self-inflicted economic woes. For instance, Nigeria’s annual food importation stands at $22 billion according to Chief Audu Ogbeh, Minister of Agriculture and Rural Development Ogbeh. He spoke few days back on the topic: “Technology and agricultural revolution: a tool for economic growth” at the 19th edition of Catholic Brothers United in Lagos, lamenting that the situation was unsustainable as it poses danger to the nation’s economy.

The sordid scenario of Nigeria’s food import is such that as at 2011 the country exported $3.4 billion worth of crude oil to the United States (U.S.) but got a paltry export of $150 million The latter also imports $4 billion worth of coffee every year as its citizens consume about 400 million cups of coffee per day but Nigeria, a coffee- producing country is yet to key into this waiting export market. That underscores the call by the Comprehensive Africa Agriculture Development Programme (CAADP) for the sector to be given the desired attention.

On his part, President of the Catholic Brothers United, Mr. Emmanuel Okoro, said that the country can attain self sufficiency in food production, if she strengthens her entire agricultural sector, adding that current challenges facing the sector include poor infrastructures, dormant research facilities, limited food processing and inconsistent government policies among others. Well said.

The truth however, is that the change in government in 2015 has adversely affected the fillip given to the sector by the administration of President Goodluck Jonathan through the Ministry of Agriculture with the focus on strengthening agricultural value chain. Had it been sustained perhaps, the sector which used to be responsible for 40 per cent of the GDP and the employment of 70 percent of the rural populace would have become the needed catalyst for sustainable economic development.

It is interesting to note that as at June 2012 there was increased collaboration between some states and the Federal Government in moving the sector forward. For instance, the then Minister of agriculture, Dr. Adesina Akinwunmi was in Ogun state to flag off the Commercial Agriculture Credit Scheme (CACS),which was in partnership with the Central Bank of Nigeria(CBN).This formed part of the Growth Enhancement Scheme(GES).

A similar visit to Osun state got the minister so impressed by the giant steps taken by the Ogbeni Rauf Aregbesola-led administration in massive food production that he promised the Federal Government will give the state concession to use the railway infrastructure at Lagos. That would facilitate the distribution of its products to other parts of the country.

Also, back then the Federal Government gave N350 million to 61FADAMA Associations in Plateau state, as part of the Stage Three of the programme aimed at boosting all-season farming in the state. In Rivers state, then Governor Rotimi Amaechi had cause to tell members of Ogbum-Na-Abachi Community Council who paid him a courtesy call, to be ready to urge their children to embrace the new drive for increased food production to create more jobs and ultimately wealth. Said he: “We are rehabilitating Rishon-Palm. We are establishing 2,000 hectares of banana farm in Ogoni area,3,000 hectares of cocoa farm in Etche and several fish farms all over the country.”

In spite of these laudable efforts, there is still much more to be done to gain maximum economic benefits from agriculture. One of these is the development of the value chain model in the food security sector, according to Jacques Taylor, the Head of Specialized Banking at Stanbic IBTC Bank. He has listed factors responsible for constricting business activities in poor countries to include reduction in international trade barriers such as tariffs, export fees, import quotas and global distribution of goods and services. Taylor has therefore, suggested that the value chain model as has succeeded in Honduras, if adopted by Nigerian would benefit the farmers, transporters, processors as well as those involved in packaging and marketing of the finished products.

He went further to suggest what the BRACED States (Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta), coincidentally all of the South-South geo-political zone should be doing in this regard, especially with adding value to cassava, even for export.

But it goes far beyond that. There should indeed, be a sustained close collaboration between the Federal Ministry of Agriculture and state governments in developing a Master Plan for agricultural rejuvenation all over the country. Chief Olusegun Obasanjo, while at the helm of the nation’s political affairs established Presidential Task Forces on agriculture to identify the areas of comparative advantage and core competence of each of the zones, in order to increase production. We have to take it from there.

For instance, from the North-East and North-West zones the major cash crops whose potentials should be developed include sorghum, millet, maize, ground nut and rice. They are all grains, the first listed three of which could find industrial use in the brewery sector of the economy. If we revive the backward integration policy as promoted by the defunct Ibrahim Babangida-led military regime, some small and medium scale industries could spring forth that would add value to the raw products.

From the North-Central geo-political zone, arguably the food basket region of the country we have yam, cassava, cashew, sesame seed, sugar cane and rice in abundance. Others are fruits such as oranges, grape, guava, pine apple and vegetables including tomatoes, onions and sweet potatoes. What is lacking is the modern preservation and processing technologies to add the economic value that would sustain their all year-availability. They would also serve as intermediate products in the local market and even for export.

Virtually all the southern states, divided into the zones of South-West, South-East and South-South produce cocoa, coffee, cassava, yam, cocoyam, oil palm and rice in appreciable amounts. The value chain required would be the processing most of them into the intermediate products that would have longer shelf life or are of more export value.

These include cocoa beans, coffee, cassava starch, flour, feeds and chips, palm oil, palm nuts and processed rice. The added advantage is that most of these states have port facilities for export of these intermediate products, if well structured to meet international standards.

Another area that could make Nigeria economically buoyant is the use of bio-fuels as Brazil is currently doing. In 2010,for instance, Raizon was established as a multi-billion dollar joint project between Shell and a Brazilian ethanol producing company, Cosan. It produces 2.2 billion litres from sugar cane both for local consumption and export.

There, cars run on both. We can do a similar thing here in Nigeria because several states, both in the North and South grow sugar cane in abundance. We should adapt the technology to earn extra export revenue while reducing our over dependence on crude oil. As severally highlighted agriculture is renewable. Fossil fuel is not.

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