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OPINION: The Immolation Of Nigeria’s Agribusiness by Richard-Mark Mbaram

Nigeria’s agricultural sector has witnessed series of dramatic events in recent times, each of these experiences gathering considerable doses of either positive or negative implications for the economic well-being of the nation.

It is futile to state that agriculture is a critical sector for Nigeria’s economic survival. The sector does not only account for 22.9 percent of the country’s GDP- going by figures supplied by the National Bureau of Statistics (NBS) for the Q2”17, as supported by the recently released Q3”17 results – but is a veritable engager of a vast percentage of its productive workforce, some 60 percent.
A corollary to the foregoing is that any action or inaction with capacity to compromise the agricultural prospects of Nigeria should be a grave concern not just to the sectorial players, but any well-meaning citizen of the country. The ‘Tomato Ebola’ experience will make easy reference as a case in point.
Farmers lost their cropping for the year and Nigerians suffered in their pockets, as the price of Tomato soared to unbelievable heights.
Sectorial Unease Key Minefield Indicator
From the recently released 3rd Quarter 2017 GDP figures, it is easy to discern that all is not well with the Nigerian economy.
On the face of it, the country is out of recession, posting an overall growth rate of 1.4%, but the reality is that this recovery is not a sustainable one, being overwhelmingly fossil fuel dependent. Put simply, if the country’s oil revenues tank for any reason, Nigeria will be right back in the red, economically.
Many Nigerians, principally the policy makers and executors, will readily pontificate about the country’s urgent need for economic diversification, but when you look critically, it becomes clear that much of Nigeria’s economic woes are primarily self induced. This view is pinioned on bare facts.
Again, for clarity, let’s return to the economy and the need to diversify. A poster on the door leading into the office of the director, Agricultural Land Department, Federal Ministry of Agriculture and Rural Development (FMARD) rightly points out what is a truism; “Nigeria’s economic salvation does not rest with oil, but soil”.
Hence transforming the country’s agriculture is the fastest way to put an end to her perennial economic embarrassment.
But mere lip service will not grow Nigeria’s Agriculture. It will take serious, deliberate and cogent sets of action. In other words, no silver bullet exists, nor can a magic wand be waved. It is about getting down to do what needs to be done.
The economy needs to be “grown” and this presupposes deploying a set of well intentioned measures to progressively nurture it towards different stages of well-being.
So, in doing this, there is no room for arbitrariness as one cannot be rascally in handling a tender plant and not expect to bruise and ultimately destroy it.
So why is Nigeria not taking her agricultural sector seriously? Why are the interests of major agribusinesses and high stake investors being toyed with? Why is the absence of a regime of coherent, consistent policies that will guaranty a mutually reinforcing growth of the real sector of the economy not a concern?
These questions are pertinent because Nigeria is gradually becoming a scary business proposition for agribusiness investors. The most recent economic data released by the National Bureau of Statistics (NBS) is a clear pointer in this regard. The country’s manufacturing sector – a key driver of economic prosperity – has been haemorrhaging.
The sector is still in the red, having posted a “Real GDP” rate of -2.85% which, though higher than the year on year average, was lower than the Q2”2017 figure by -3.49% points. If anybody needed a measure of the economic temperature of Nigeria, such a one needs look no further. The manufacturing industry is indeed the main off-taker of agricultural produce, turning them into many end-products. Because of its mutually reinforcing relationship with agriculture, the state of this sector must be a cause for concern to stakeholders in the Agro-allied production space.
Little wonder that there is so much unease in the agricultural landscape of Nigeria in recent times.
An apt example is the ‘Maize Debacle’. As at press time, Wacot, a major agro-allied industry player has been barred from taking delivery of its shipload of maize at the Apapa Port, Lagos. The reason given by the authorities centered on a range of allegations, including the protection of the local production economy. Reliable information posits that Wacot has incurred huge demurrage on the consignment.
Trouble started when a farm-based Organisation; Nigerian Farmers Group and Cooperative Society, raised alarm over the importation of maize into the country. According to the group, the importation spelt doom for local maize production, as the price of the commodity would free-fall. It insisted that the interest of local farmers would be compromised and the government appears to have agreed.
The Maize Power
It bears mentioning that in Nigeria, maize is a very important crop due largely to its immense commercial viability – it is a crucial input in food and feed production. Statistics credited to the FMARD put local maize demand in Nigeria at 15.5 million metric tonnes and local production at some 10.5 million metric tonnes. Thus, at peak production, the country has a shortfall of 5million metric tonnes a situation further compounded in recent times by a 40% loss attributable to the Fall Army Worms (FAW) outbreak in 2016.
Crop loss for 2017 currently stands at 25% going by estimates supplied by a local maize value chain actor.
According to Sunny Ameh, Nigeria country director for Syngenta, “this situation puts local agribusinesses that rely on maize in serious trouble”. While underscoring that Syngenta has a chemical solution to the problem, Ameh points to the losses incurred as being directly responsible for the recent buying decisions of key industrial players.
Interestingly, high maize price has been a persistent reality for a long time in Nigeria. The Poultry and Aquaculture industries have had to endure excruciatingly high cost of feed on this account, a situation which has seen a kilogram of feed skyrocket from between N60 -70 to N140-150. Many poultry and aquaculture businesses have been smothered on account of this hostile reality. If anyone is wondering why food inflation is at an 8 year high of 20.3%, here is the answer.
The brief is that while a large percentage of cultivated maize caters for feed production, the manufacturing industry alone guzzles about 60% of the country’s output for production of cornflakes, malt drinks, beer, flour, syrup and dextrose – a demand that still must be met. To stay in business therefore, the producer companies embarked on a spate of importation from supplier nations like Argentina, U.S.A, Brazil and Ukraine.
Dire Need for Clear Policy Direction
The fear being entertained by Nigerian farmers is a very plausible one. The country cannot afford to allow for massive importation of maize from other climes.
According to a closely followed report by the United States Department of Agriculture (USDA), a total of 185, 000 MT of maize arrived Apapa, Tin Can and Calabar ports between January – October 2016.
Nigeria needs a clear plan to fix the situation. In doing this however, there is need for a balancing act. Big agribusinesses like Chi-Wacot, Dangote, FlourMills and OLAM all have sizable maize requirements, which cannot be wished away, but must form the basis of an informed plan which will factor in the short, medium and long term practicalities. It must also take account of all the genuine interests at play.
Indeed, it is an unenviable, delicate balancing act requiring front-end policy framing capabilities on the part of the country’s economic managers.
Accordingly the recent knee-jerked reactionary approach witnessed cannot be acceptable.
It is undoubtedly the reason for the dismal Q3”2017 manufacturing indices and a pointer to the fact that Nigeria cannot be wooing investors on one hand, and then on the other, be actively emasculating the interests of existing investors.
Agribusinesses like FlourMills, OLAM Dangote, Wacot etc. are exactly the kind of demand-driven actors that the Nigerian economy needs at this time.
They are the market for agricultural producers and can, through a well thought out government inspired recovery effort, be induced into building a veritable backward integration plan for the maize value-chain.
The past administration achieved it in the aquaculture and rice value chains; nothing says it cannot be repeated in maize.
Going Forward
Consensus exists as to the urgent need for coherence in the policy framing and implementation eco-system. It is impossible, in today’s world, to run an arbitrary economic eco-system without a concomitant backlash. Care needs to be taken to defuse the current situation, Nigeria cannot continue down this path of economic self immolation.

Mbaram, a Laywer and CEO of AgroNigeria, wrote in from Lagos.


Source: LeadershipNG


OPINION: Food and the Future By Chief Audu Ogbeh

I have deliberately chosen the topic of this lecture as ‘Food and the Future’ because of the significance of food to the continued well–being of human society.
As the Honourable Minister of Agriculture and Rural Development, my core business is agriculture and food security, especially at a very critical moment in our history when the agricultural sector is being revitalized under the Buhari Administration.
The renewed emphasis on the transformation of the agricultural sector, by this Administration, is to ensure that the sector becomes the new engine of growth for a vibrant, resilient and productive national economy.
But our business here today is to reflect on ‘food and our future’.
The Importance of Food
I do not have to stress the important roles food and eating play in our lives, as they are evident in a rich variety of ingredients, food forms, shapes, tastes and colours all over the universe. However, we often gloss over the business of food, with serious consequences.
Nonetheless, food is basic to human existence, irrespective of social or educational status, religious persuasions, race or gender. Survival is impossible without food. A sad reality, however, is that in spite of the fact that all human societies have been divinely endowed with the ability to produce all the varieties of food required for human sustenance, hunger is still a recurring decimal, and an on-going global phenomenon.
Hunger is real. The causes are diverse and complex. Yet, it occurs where increasing knowledge about food and the abundance of food are widely spread to individuals and places where scarcity and inadequacy are prevalent. Failure to know what to eat, what not to eat, how to eat and the right mix of what to eat at all times arise out of a wide variety of causes. The global inequalities in wealth, economy, politics and industrial development account for some of the causes. But tackling hunger remains an on-going task that must be done.
The demand and supply aspects of food have underscored the need for evidence-based interventions at various levels, and in various forms as the food industry increasingly crystallizes as an all-embracing sub-sector of the global economy. Increasingly, therefore, agricultural systems, land use systems, natural, social and economic environments are receiving greater attention under combined efforts to meet human needs for sustainable supply of food for both human and animal consumption.
Global Hunger Profile
Estimates by the United Nations Food and Agriculture Organization (FAO) between 2014 -2016 indicated that about 795 million people are hungry in a global population of about 7.3 billion people. Expectedly, 780 million people (98.1%) of the hungry people live in developing countries, including Nigeria, a rather sad situation reflecting the deplorable condition of human wellbeing in these countries.
The World Food Programme has also provided some disheartening statistics about famine worldwide, with about 805 million people not having adequate nutrition. The highest percentage of undernourished populations, regretfully, is also in Sub-Saharan Africa.
Perhaps more worrisome is the manifestation of hunger in children, attested to in fetal growth restriction, stunting, wasting, and deficiencies of vital micronutrients –vitamins and minerals-including iron, vitamin A, iodine. The consequence is that poor nutrition has caused nearly half the deaths in children under five (5) years old. In addition, about 66 million schoolchildren across the world are also hungry.
Food Situation in Nigeria
In the case of Nigeria, the World Food Programme (2016) has provided some interesting details about the food situation in the country, which are instructive, including:
– the reality that we are a food deficit nation, and Africa’s largest importer of rice (until recently with the remarkable progress we have made to curb rice importation through local production);
– that one third of children under five years in the Country are stunted- twice the rate in Thailand and thrice the rate in Tunisia;
– a disturbing incidence of increased rates of both child and adult obesity; and
– that 48.5% of our women of reproductive age are anemic.
By the UN’s projection, the current dietary consumption patterns will continue on the same rising population trajectory. Feeding the more than 9 billion projected world population by 2050 will, therefore, entail producing more food in the next 40 years. This is even more compelling for Nigeria given the fact that the UN has projected that we will be the third most populated country in the world by 2050. These present clear lines of opportunities for us hence the need to start taking adequate measures in the short, medium and long terms to feed the explosion of population which is already in our hands and the thunderbolt which we are anticipating especially from year 2040 through year 2050.
And so what are the measures that we have either put in place or will be putting in place to ensure food security for Nigerians now, and into the future?
Current Measures Towards Promoting Food Security in Nigeria
The first major step is the promotion of a culture of eating what we grow and growing what we eat. As aforesaid, nature in its wisdom has ensured that the best foods for our daily needs are clearly within our reach in our respective communities along all the agricultural belts in Nigeria. Indeed, they are with us-they have been grown over the years by our forebears, and through research, they can be produced with improved varieties, for higher yields, and with less stressful methods of cultivation. But what did we witness in the past? It was an addiction to foreign taste and food produced in other climes.
This is why we need to be grateful to God for the dollar scarcity in the economy which has made it practically impossible to continue with this culture of unbridled waste, and invariably exporting wealth and jobs to other nations while importing poverty into the Country. And, evidently, one of the benefits of the economic downturn in Nigeria is the recognition that we need to go back to the drawing board by growing what we eat and eating what we grow. We have the population that can thus be turned to an asset as a vibrant market for food.
Indeed, in our state of delusion in the past, we got so addicted to imported rice and wheat that a considerable number in our midst did not think they could be grown successfully in Nigeria. We have proved doubting Thomases wrong, however, with the remarkable success of our home-grown initiatives aimed at boosting rice production in the Country. It is consoling that even those who were permanently addicted to the consumption of foreign rice and wheat-based products are now patronizing our local rice and wheat, in recognition that they are more nutritious and safer for their health. The flour millers have embraced locally-grown wheat, and are now discussing with the wheat farmers on increased production and agreeable prices.
The second major step is a new policy direction for the agricultural sector, as outlined in the ‘Agriculture Promotion Policy (APP) 2016-2020- also known as the ‘Green Alternative”. Through the instrumentality of this policy document, we have consolidated on the successes of the agricultural programmes of past administrations in Nigeria without necessarily embarking on policy somersaults or reversals.
We have enriched the process through the introduction of new initiatives including the agro export zero reject programme; emplacement of improved process of fertilizer usage, entailing matching of the right fertilizer with the right soil types, commencement of a cattle breed improvement programme; expanding the nationwide coverage of extension, and bringing back the three Federal Universities of Agriculture to the domain of agriculture, being the constituency to which they naturally belong in the first instance, and in which they were situated by the enabling law.
With the three Universities of Agriculture effectively under the oversight authority of the Federal Ministry of Agriculture & Rural Development (FMARD), we are confident that through their teaching, research, extension and innovation activities, the agricultural sector will be adequately supported in resolving the challenges of food insecurity in Nigeria, and meaningfully addressing the slow pace of agricultural development in the Country.
The APP/Green Alternative has effectively been incorporated into the Economic Recovery and Growth Plan (2017-2020). In order to ensure focus, clarity and impact, the plethora of activities within the agricultural sector within the mandate of the Federal Ministry of Agriculture have now been streamlined and consolidated into ten distinct areas. They are as follows:
(i)                 comprehensive livestock development,
(ii)               input access and transformation,
(iii)             expanded access to financial markets,
(iv)              value addition and processing support and
(v)                agricultural water management. Other areas are
(vi)              agricultural education, research and innovation,
(vii)            agricultural manpower development,
(viii)          produce& commodity storage systems,
(ix)              commercial agriculture expansion support and
(x)                nutrition, quality control and standardization. The ten areas will henceforth constitute the priority areas of intervention and sustained support by Government in the agricultural sector in the coming years.
Through the Agricultural Sector Food Security and nutrition Strategy (2016-2025), we are also taking necessary steps to address the whole gamut of food –related issues. The strategy focuses on eight priority areas namely: (i) enhancing value chains for improved nutrition, (ii) diversifying household food production and consumption, with emphasis on women and increasing access to micronutrient rich foods , (iii) improving food safety along the value chain, (iv) building resilience and social protection nets through food nutrition systems for vulnerable groups, (v) promoting nutrition research and information systems, (vi) improving the agricultural capacity to address food security and nutrition problems, (vii)nutrition education, social marketing, behaviour change communication and advocacy and (viii) nutrition surveillance and monitoring and evaluation.
Of particular importance is the need to improve food availability, access, utilization and stability in the Country, bearing in mind that the 38kcal/person/day food energy deficit in the country needs to be reversed. For example, as outlined in the Strategy, the insufficiency of dietary availability of iron from animal sources at 1mgper person per day in Nigeria relative to the 2.9mg globally; and consumption of quality protein at 35g per person per day relative to 68.6g globally are alarming to us.
Most often, available foods are also not affordable to a significant number of the national population while nearly 60% of the income of households is expended on food, and even those in the lowest rung of the social and economic ladder spend more than 75% of their incomes on food.
Inadequate processing and storage facilities are troubling issues too because of their impact on prices and affordability. Prolonged crisis, especially in the northern eastern part, and other parts of the Country that have experienced incessant clashes of herdsmen and farmers, is also an issue of concern. The good news is that this Administration is addressing these issues with a view to effectively, satisfactorily and permanently resolving them.
While time will not permit me to elaborate on all the eight areas of the Food Safety and Nutrition Strategy, a few words on food safety will suffice. All along the food value chains are various hazards arising from indiscriminate use of fertilizers, herbicides, pesticides and veterinary medicines, among others. Poor agricultural practices have accounted for the rising incidents of biological contamination of foods with moulds, viruses, parasites, prions, bacteria, some of which have been associated with producing toxins like cancer aflatoxins. Drying in most places is undertaken on major roads on bare surfaces thus exposing food items to dust, lead from car exhaust and pest contamination, among others.
The food security and overall health of our people are, therefore being compromised, almost daily, hence the unhealthy situation food safety status of the country presently. The consequence is that we are witnessing increased incidents of liver cancer (about 7,761 cases) kidney failures, and other chronic diseases translating into a huge loss to the country, especially with the loss of lives there from . The Federal Ministry of Agriculture cannot deal with all these issues alone because they go beyond its jurisdictional authority. Accordingly, we are working with concerned key stakeholders in all spheres to put in place all necessary measures to ensure that the food we consume nourish our bodies rather than impair our health.
Combating diet related non-communicable diseases, which are also increasing phenomenally in Nigeria is also a topical concern in the food safety and nutrition strategy. They are manifested in cases such as high blood pressure, high fat content in the blood, high blood glucose levels, obesity, diabetes mellitus and cardiovascular diseases. Given that increased access to fruits, vegetables, legumes, and other nutrient-dense foods can help stem the occurrence of these diseases in large numbers, we are focusing attention on producing them in greater numbers in the country. The emphasis is to ensure improved access and affordability, especially to vulnerable persons and those in the lowest rung of the social ladder in the society.
In view of the critical importance of nutrition to food security, we are committed to entrenching, into the system, an agricultural system that is closely linked with nutrition, hence nutrition-sensitive. To further underscore our commitment to this new paradigm , in my maiden address to Members of the Governing Councils of Federal Universities of Agriculture on 8th August, 2017, I had placed the Universities on notice regarding the importance of nutrition as a new area of study attracting worldwide scientific attention. It is informed by the new reality that ninety percent of human disabilities are reportedly traceable to what we eat or fail to eat.
Hippocrates, way back in 390BC, said ‘let your food be your medicine and let your medicine be your food’. That statement is valid today and we have no choice but to pay attention to this word of wisdom in order to drastically reduce our national health bill, arising from poor nutritional habits and raise the bar of the low life expectancy rate in the country presently.
Indeed, what we grow- the soil, the use of macro and micronutrients; how we harvest, store process, package and cook our meals have all become something worthy of deep academic investigation. This University, and other agriculture universities in the country, must take the lead in research in these areas with a view to coming up with enduring solutions to improve the quality of food we eat in the country and our health status. It is partly because of this that I had advocated that each of the Federal Universities of Agriculture should, as a matter of urgency, have in place a fully established and functional college of nutrition and medical sciences within the shortest possible time, where none currently exists, as part of its process of re-modeling as a centre of excellence.
In the area of livestock development which is integral to improving food access, the breed improvement programme is on-going with heifer and bull multiplication, institution of integrated disease and pest control measures, provision of support for processing of poultry meat and dairy, increased livestock production and pasture and fodder development as well as establishment of cattle colonies and promotion of commercial ranching within existing grazing reserves in the country.
With fisheries, we are concentrating effort on intensifying the promotion and development of fisheries and aquaculture , including promoting a cage culture support for freshwater and marine water fish breed multiplication across the country. We recognize the need to utilize the available dams in the country for intensive fish production and collaborative fish breeding support. Accordingly, we are working in partnership with relevant institutions of Government at the federal and state levels. As a further measure of increasing our local capacity in fish production, we have drastically reduced the importation of fish and we are working towards achieving further reduction in the rate of importation in the years ahead. Indeed, we are confident that it is possible to achieve self-sufficiency in fish production in Nigeria, in no distant time, with increased investment in fish production, storage and processing in the coming years.
It is impossible to improve agricultural production and productivity if farmers do not have adequate access to certified/quality inputs. These include certified seeds, agro-chemicals, soil specific fertilizer blends, mechanization and extension services. In this regard, we are focusing attention on expanding the scope of the GES to include 5ha+ farmers, customizing fertilizer blends to local soils and propagating the use of high yield seeds at the Local government level. We are sure that we shall begin to see significant improvements in agricultural production and productivity once there is consistency of action in this direction in the coming years by all stakeholders.
It is also true that agriculture cannot thrive without expanded access to financial markets. In this connection, we are working hard to significantly reduce the cost of funds. We are advocating for the scaling up of the Anchor’s Borrowers’ Programme to the 36 States. We shall complete the recapitalization of the Bank of Industry (BOI), institute new agricultural finance programmes in partnership with the Central bank of Nigeria and advocate for the review and scaling up of NIRSAL and NAIC support.
In the realm of value addition, we are concentrating effort on expanding downstream value addition operations, research and propagation, supply chain domestication programme to support industry, as well as boosting business start-up support for youth and women among others. The staple crop-processing zone is also expected to come on stream in due course, as planned, which will be greatly increase the scope of processing of in the agricultural sector, in addition to attracting investors increased investment to the sector.
Boosting food supply also requires that agriculture is undertaken in both the dry and wet seasons. To this end, we are determined to relentlessly pursue the acceleration of irrigation projects in the country by expanding irrigable lands in the river basins in the country and deepening the use of irrigation by farmers by providing the enabling support to them. Undoubtedly, our dams across the country are grossly under-utilized, poorly maintained and need to be effectively harnessed, henceforth, for all year agricultural production and productivity. The silted rivers need to be dredged to reduce flooding tendencies and provide means for waterway transportation of agricultural produce from source to the markets.
Boosting food production and foreign exchange earnings through agro-exports also entail the promotion of foundation and breeder seeds development for high yield- early-maturing-drought and disease resistant varieties of the major crops grown across the country. They are cocoa, sugar cane, groundnut, palm oil, cashew cotton, ginger, sesame, gum arabic. Kenaf, shea butter, rubber, mango, citrus, rice, wheat, maize, soya beans, tomatoes, yam, sorghum, cassava and cowpeas. We are intensifying efforts in this direction with a view to ensuring that we respond adequately to the demands of the local and foreign markets.
Our produce and commodity storage systems programme is being consolidated in order to help us to reduce post-harvest losses and sustain the existing grain reserves management. We are also in the process of revitalizing the commodity exchange for improved inventory management and fast-tracking of exports. A case has also been made for the re-introduction of the marketing boards which we are exploring with a view to taking a final decision soon.
The re-establishment of the National Agricultural Land development Authority (NALDA) is a welcome development, bearing in mind the astronomical cost of land preparation/development, especially in the southern part of the Country. NALDA will also greatly enhance and facilitate our commercial agriculture programme, in addition to assisting us to triple the production of cassava, maize, rice, wheat, soya beans, potato and tomatoes, just to mention a few, as well as revive and scale up cashew, cocoa, palm oil, cotton, sugar cane banana, mango, pulses, coconut ,ginger and rubber plantations.
The promotion of crop specialization at the state level based on comparative advantage is expected to boost agricultural production in the country. We are committed to the achievement of sufficiency in our local staples . Already, we are almost achieving this target with rice. I believe with determination, we have no business importing any kind of food again that we can comfortably grow in Nigeria. Indeed, there is no need for such indulgence again, which has always drained us economically and multiplied poverty in our land.
The Role of Federal Universities of Agriculture
The Universities of Agriculture (UAs) should probably be our most important partner in the agricultural sector. The agricultural sector cannot thrive without knowledge- therefore the specialized universities of agriculture were specifically established as the knowledge centres of this sector.
Until the recent policy change, however, the institutional structure and functions of the UAs show a marked departure from both the norm in implementing
the concept of UAs in other parts of the world, and also from the provisions of the extant law, as highlighted below:
        i.            departure from the provisions of the original statute establishing the Universities – whereas these Universities, though established by law, under the supervision of the Federal Ministry of Agriculture through an Agricultural Universities Coordinating Agency (AUCA), were operating under the Ministry of Education since 1999 without regard to the law, using the instrumentality of supervision by the National Universities Commission (NUC) that have employed the same parameters as those applied for faculties of agriculture in conventional Universities;
      ii.            departure from the original academic structure – whereas the original academic briefs of the Universities of agriculture put emphasis on practical work of staff and students in terms of teaching, research and outreach, which are closely integrated in a multilateral activity structure (e.g. 70:30; 50: 30: 20; 70: 20: 10; etc.) and which permits sufficient mental mobility of professional staff between colleges and other organs, these Universities have since operated an academic structure not different from the conventional approach of the faculties in conventional universities;
    iii.            departure from the original programme structure: whereas the collegiate system adopted from inception for the universities of agriculture envisaged considerable administrative autonomy of colleges, these units are run in the same way as faculties with no such independence in programme implementation, and the attendant negative consequences for addressing the issues confronting the agricultural sector in real time as desired;
     iv.            departure from the philosophy, purpose and global best practices whereas the agricultural universities were expected to align their teaching, research community services with the policy focus and programme priorities of government in real time, and to have by now developed considerable capacity to address the emerging policy issues facing the agricultural sector, as done by such universities in advanced agricultural economies of the world. The agricultural universities in Nigeria are intellectually disconnected from the Federal Ministry of Agriculture and Rural Development, and have failed to uphold this philosophy and contributed little or nothing to benefit the Ministry in finding solutions to such policy issues in order to jointly address them; or come up with enduring solutions to problems confronting farmers and preventing them from adopting innovations and operating their enterprises as a business.
I urge the Federal University of Agriculture, Abeokuta, and other sister institutions in Umudike and Makurdi to take advantage of their reintegration into the Ministry, and our agricultural agenda at large, and get enlisted as our reliable allies in the agricultural sector. Looking into the future, there are so many things the UAs can do to improve the food situation in the Country. For example, the vast portions of arable land left to fallow for too long should now be harnessed for agricultural production, either singly or in collaboration with willing investors and other stakeholders.
We are living witnesses to the fact that our universities in Ibadan, Zaria, Ife and Nsukka, for example were every active in the past in providing food for their immediate communities. There is no reason why this university (Abeokuta) cannot provide a substantial part of the food requirements of the people of Ogun, Lagos and Oyo States. By doing this, you will not only be promoting access to food in Nigeria but also enhancing your internal revenue generation capacity in the face of dwindling fund allocation from Government.
Another area which you can play a significant role is in seeds and seedlings improvement. Nigerian agriculture will thrive better with improved seeds in all crop areas. There are early maturing new varieties of cocoa, kolanut, cashew and other crops which are being grown in other parts of the world through the research breakthroughs of agricultural institutions such as yours. The UAs need to get involved because we need breeders of exceptional pedigree in our universities to improve the fortunes of the agricultural sector in Nigeria.
Climate-related uncertainties manifesting as drought, floods, temperature fluctuation, crop and animal diseases increasingly pose what could become the greater challenges to agricultural production and food security. There are significant indications of climate-related problems already being recorded in many regions, particularly in sub-saharan Africa.
Global warming and unusual weather conditions like heavy rainfall are leading to new methods of distribution of vectors and diseases, with the emergence and persistence of new pathogens or the spread of pathogens to new areas. Growing demands for energy are adding further pressures on agricultural systems, both to supply traditional bio-energy and to supply industrial biofuels. The historic technological and policy focus on crop and livestock production for agriculture is no longer viable if agriculture is to thrive in this new environment of multiple pressures and demands. Agriculture can no longer simply focus only on the output of food production if it is to preserve the vital resources that will provide food in the long run. Your perspectives on how to respond to these emerging challenges are needed now.
We are concerned with mobilizing the youth for agriculture. The UAs are fertile grounds for the accomplishment of this objective. That is why I have directed that in moving forward, the UAs should review their curricula and grading system to give more weight to practical agriculture rather than mere theory. In this regard, henceforth every student is to own a farm or engage in any other form of agricultural activity within the respective sub-sectors and value chains.
By doing this, students can earn money while in school and they can eventually transform as farmers and agro-entrepreneurs once they are out of school. Once we are able to enlist our agricultural students to embrace practical agriculture in school, I am optimistic that this will serve as a source of inspiration to other students in our tertiary institutions and the youth population in Nigeria to embrace agriculture as a profitable venture.
I am mindful of the low enrolment figures for agriculture today in our UAs and the faculties of agriculture in the conventional universities in Nigeria. I urge you to provide us with insights regarding the incentives we need to put in place to boost student enrolment. Low as these enrolment figures are, they cannot provide justification for the observed deviation of UAs from their intended pathways to establish and grow the ancillary courses of instructions faster than the core mandate agricultural courses. Soon, Government will engage your governing councils and the senate in order to jointly address this and other structural issues arising from the departure of UAs from their mandate in different ways.
Research and innovation is a very wide area for which the expertise of the AUs is needed. Indeed, virtually every aspect of Nigerian agriculture is challenged, requiring new frontiers of knowledge to enable us make significant breakthroughs. I urge the UAs to place more emphasis on research and innovation and partner with the Agricultural Research Council of Nigeria (ARCN), the National Agricultural Seeds Council (NASC) Agricultural Colleges and Research Institutes, in the Country, to take the agricultural sector to the next level. I urge you to commercialize your research breakthroughs and set up subsidiaries for providing market-driven innovative services which the agricultural sector urgently requires for its sustenance and rapid growth. Gone are the days when research breakthroughs should lie fallow on the shelf. They are needed in the field more than ever before now for the transformation of the agricultural sector.
The UAs can also do more in the area of extension. Indeed, the extension system is currently being re-calibrated to ensure inclusive participation by all stakeholders. The days of a wholly public sector-driven extension system are also gone for good. The UAs are in good stead to support the agricultural system by making the extension system more responsive, knowledge driven and impactful. You are, therefore, welcome to the new extension world of the agricultural sector as key players. In particular, the space for linking research with extension farmers and markets for inputs and outputs should be strengthened with the UAs playing a critical role in illuminating the policy and operational issues involved and in proffering solutions to address such issues.
Other areas where the UAs can effectively complement us include providing us with knowledge on more efficient utilization of resources, especially the continued interconnections between land and land-based resources and the challenge faced in balancing the multiple uses of land, water and energy and the resilience of the food system-including its vulnerability to disruptive hazards in supply chains and trade routes, as well as threats from disease, conflict and climatic shocks. Others include diet and sustainability-especially the changing trends in food consumption and what constitutes a healthy and sustainable diet appropriate in different cultural and environmental contexts, technological improvements and new innovations , including the effects on food production and consumption patterns and impacts on the sustainability , security , quality and affordability of food and agricultural and food trade policies in terms of their assessment and suggestions on the way forward.
I will not fail to mention that the place of harmony and peace in the University environment for the realization of your mandate. I, therefore, urge you to continue to support this Administration in its determined efforts to bring a new lease of life to the country.
We are determined to remodel the UAs as nodal centres of excellence. I assure our approach will be friendly and inclusive but we may not necessarily agree on all issues. I, therefore, seek your cooperation in ensuring that this University and the other two universities of agriculture are truly remodeled and focused as specialized institutions and legal entities for the advancement of agricultural education and training, as well as innovative and adaptive research in line with the vision of their founding fathers. We have set in motion the necessary machinery to achieve this goal. We shall not look back until we have reached the mark.
So what does the future portend for the agricultural sector in Nigeria? I see a bright future for the sector. I see us achieving national food sufficiency in record time. I see us eating in the right quantity and in the right mix. I see us producing food for export, and increasingly meeting the food requirements of other parts of the world, especially the west, central, eastern and northern sub-regions of Africa, and the European Union in the years ahead. I see our food industries flourishing and supporting us in wealth creation and employment generation. I even see our animals eating well and supplying us the nutrients that our bodies need for healthy living.

I see the next generation of billionaires in Nigeria emerging from the agricultural sector. I see healthier citizens, conscious of the need to eat well rather than eat anything that comes their way. I see prosperity along the agricultural value chains that takes us out of food inadequacy and poverty. I see agriculture replacing oil as the mainstay of our national economy. I see a Nigeria with zero tolerance for food importation, imbued with a national pride of growing and eating what is produced locally. I see a Nigeria where our huge population in 2010, as the third most populous nation in the world, becomes a source of our strength. That is, however, if we all walk the talk. It is a collective decision. The choice is ours.

Text of speech By Chief Audu Ogbeh, OFR, Honourable Minister of Agriculture and Rural Development At The Convocation Lecture Delivered at the Federal University of Agriculture, Abeokuta Ogun State, Nigeria on 19th October, 2017

FG agric job creation programme for 360,000 youths begins soon — Emefiele

The Federal Government has commenced steps to ensure quick commencement of the Federal Government’s agricultural initiative to provide jobs for 360,000 youths nationwide, the Governor, Central Bank of Nigeria, Mr Godwin Emefiele, has said.
Emefiele made the disclosure in Abuja on Friday at a stakeholders’ meeting on the operational framework for the Accelerated Agricultural Development Scheme (AADS).
He said AADS was targeted primarily at unemployed youths between the ages of 18 and 35.
Emefiele said through the scheme, a minimum of 10,000 youths in each state, willing to engage in sustainable and profitable activities along the agriculture value chain, would be employed and trained. 
“I believe we are on the verge of something very significant with the AADS.
“ This scheme has been designed to create an ecosystem with the active participation of the public sector, state governments and the private sector,’’ he said.
Emefiele said the objectives of AADS included the creation of economy of scale of farming on contiguous land.
“It will also assist famers in embracing modern farming practices, such as use of tractors and irrigation schemes.
“It aims to reduce cost of production with availability of high quality inputs at competitive prices and lowering delivery cost of extension services,’’ he explained.
Emefiele said that state governments were expected to provide contiguous arable land, basic infrastructure, more efficient extension services, training and mentoring of the beneficiaries.
“The CBN on its part will provide financing at single digit interest rates.
“Beneficiaries are not expected to come up with any physical collateral but they must be grouped into formally registered cooperatives and cross-guarantee each other.
“All loan beneficiaries must also have valid Bank Verification Numbers (BVN), which will be registered on the National Collateral Registry and used to track repayments and also blacklist any defaulters.
Emefiele said that with the release of the operational framework for the scheme, engagements with stakeholders would be continuous to ensure that the scheme began during the dry season cultivation of the outgoing year.
Also, the Minister of Agriculture, Chief Audu Ogbeh, said the Federal Ministry of Agriculture and Rural Development would be providing technical support for the project.
“We will be fully involved in the land clearing aspect of the project. In some places we will also be building dams and lakes to ensure all season farming.
“We will also provide advice because we have a team of experts at the ministry on crops, soil testing and the right kind of fertiliser so that when these young people go into agriculture, they won’t lose money,” he said.
The Governor of Kebbi, Mr Atiku Bagudu, thanked the Federal Government for recognising the significance of agriculture in economic development.
“We could not have recovered from recession as early as we did if not for the intense agricultural intervention initiated by President Muhammadu Buhari,’’ he said.
Bagudu also stressed the need to involve financial institutions, which banking models allowed them to support agriculture, for the programme to succeed.


Source: guardian.ng

Rice farmers, processors to slash price of locally produced rice to N6, 000 per bag

The Rice Farmers Association of Nigeria (RIFAN) says it will reduce the price of locally produced rice from N18,000 per 50kg. bag to N6,000 within the next few months.
Alhaji Aminu Goronyo, the National President of RIFAN, said this during a meeting with Rice Processors Association of Nigeria (RIPAN) and the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, in Abuja on Wednesday.
Goronyo said that although RIFAN and RIPAN had agreed to fix the current price of 50 kg. bag of rice at between N13,000 and N13,500, the price would further crash to N6,000 within the next few months if there were bumper harvests and low cost of production.
He said that the drastic reduction in the price would be made feasible if the cost of rice production was cut through the Federal Government’s support to rice farmers.
“This is just the beginning. The actual price will still come down because we are expecting a bumper harvest this year; we have sat down with the millers and agreed that we will work together for the interest of Nigerians.
“At one time, people were buying a bag of rice at the cost of N18,000 but they are now buying it at between N13,000 and N15,000. The price is coming down.
“In the next few months, God willing, the price of a 50kg. bag of rice will come down to N6,000. It is achievable, it will be a reality,’’ he said
Alhaji Mohammed Abubakar, the Chairman, Rice Processors Association of Nigeria (RIPAN), said that the associations had signed a Memorandum of Understanding (MoU) to slash the prices of both paddy and processed rice.
“We have agreed at N110,000 per tonne of paddy. In the market, rice will come around N13,000 to N13,500 per 50kg. bag.
“Before now, we were buying paddy at N140,000 and N150,000 per tonne and we are selling our rice at N16,000 per 50kg. bag.
“If this MoU works, we hope to sell a bag of rice at N13, 000 to N13, 500, depending on where you are in the country,’’ Abubakar said.
Speaking during the meeting, Ogbeh commended the associations for their decision to slash the price of locally produced rice.
The minister, who noted that the biggest challenge facing rice farmers in the country was smuggling, said that the move would aid efforts to stamp out rice smuggling into the country.
“Let me express the appreciation of President Muhammadu Buhari and the Vice-President, Prof.  Yemi Osinbajo, to both farmers and millers because nobody can calculate what you have done to rescue our country that was very close to disaster.
“What you have done is going to save us from a lot of difficulties. What we want to promise you is that we will help you ease the burden of rice farming.
“Last year, we procured 80,000 threshers; this year, we will procure another 2,500 threshers and we are bringing in small reapers for distribution to rice farmers.
“The equipment will enable them to cut the rice, thresh it, winnow it and put it in sacks; It will take away all the stress which makes rice farming very difficult so that you can keep to the price of N110, 000 per tonne of paddy that we agreed.
“If we are able to keep these prices stable and we are able to contain smuggling, I hope you will keep us informed when there are any challenges confronting you because no country can claim to be strong if its citizens are hungry.
“Let everybody know that the price of rice for this Christmas will be good enough for us to eat rice, chicken and fish.

“We just can’t afford hunger here. The smuggler will be the beneficiary of any violation of the price agreement you have reached,’’ Ogbeh added.

Source: www.pulse.ng

Nigeria now world’s second leading producer of Sorghum

NIGERIA’s agri-business in the sorghum cultivation is now amongst world’s leading position at number two after the United States of America, USA, which is the number one world’s leading producer.
Vanguard inquiries showed that the world sorghum production is forecast at 59.34million metric tonnes in 2017/18. A breakdown of the data, obtained from the United States Department of Agriculture (USDA), showed that USA’s output is projected at 8.4m metric tonnes while Nigeria is following with 6.4m metric tonnes and Mexico in the third position with 6.0m metric tonnes.
According to the USDA data, Sorghum production was 63.08 million tonnes last year. This year’s output, at 59.34 million tonnes, represents a decrease of 3.74 million tonnes or a -5.93 per cent in Sorghum production around the globe.
Meanwhile a report from one of the major local industrial consumers of sorghum, Nigerian Breweries Plc, NB, said that the industrial sector, especially food and beverages, utilised 20 per cent or 1.3m metric tonnes of the grain as raw materials in 2015, while 80 percent or 4.2 million tonnes were utilised to produce food and livestock feeds.
NB, in its Sustainability Report tagged, ‘Enhancing the Sorghum Value Chain’, stated that its annual demand for Sorghum is approximately 100,000 metric tonnes per annum.
Sorghum is a local grain grown predominantly in the semi-arid, savannah and grassland areas of Northern Nigeria and other parts of the world.
The report stated that it is nutritionally rich and serves as a staple food in most parts of northern Nigeria. It also stated that the grain has assumed commercial relevance lately, especially in the food and beverage industry.
It has been found to be a valuable ingredient next to malted barley used in the brewery industry.


Nigerian cows are the worst milk producers in the world, says Ogbeh

Audu Ogbeh, minister of agriculture and rural development, says cows raised in Nigeria are the worst milk producers in the world.
Speaking at the 79th anniversary of Ikoyi Club 1938 in Lagos on Thursday, he said Nigerian cows produce far less quantity of milk than their counterparts in other parts of the world.
Ogbeh said while cows in other countries could produce 100 litres of milk per day, an average cow in Nigeria produces less than one litre.
He said cows in Holland produce a minimum of 50 litres of milk per day on the average while the US boasts of even more production.
“An average cow in the US drinks an average of 100 litres of water per day; but in Nigeria, I doubt whether a cow can get two liters of water per week,” the minister said.
He identified the nomadic system of rearing cattle in the country as the major cause of such low productivity.

“The earlier farmers started developing ranches for cows, the better it would be for the cow market and its entire value chain,” he said.

Source: www.thecable.ng

Technology is helping middle-class Nigerians turn to farming without getting their hands dirty

For decades, various Nigerian administrations have championed the idea of diversifying an oil-dependent economy with agriculture often been cited as the top alternative. But rather than match bluster with action, Africa’s largest oil producer has perennially remained reliant on it’s biggest export.
More than 80% of farmers in Nigeria are small holder farmers who cultivate a few acres of land to feed their family and also sell produce to earn a living. Yet, while the government has failed—getting middle-class Nigerians to take up farming—thanks to technology, a crop of new agro-tech startups are finding success.
Rather than purchase farmlands and get involved the daily routine of the industry, startups like FarmCrowdy and ThriveAgric enable interested middle-class Nigerians to fund existing farms for between $200 and $750 for a harvest cycle (which can last between five and six months depending on the crop) and earn up a share of profits.
For the investors, the entire process happens online. Once signed up, they’re kept in the loop with bi-weekly email updates and videos detailing the progress of farms and expected harvest. At the end of a harvest cycle, investors receive the capital plus a pre-agreed profit margin via bank transfer. No physical interaction required although investors can visit farmlands if they wish to.
With capital from its farm sponsors, FarmCrowdy provides its network of over 3,500 farmers with funds, equipment and technical support to plant and harvest crops. To ensure quick sale of harvested produce, FarmCrowdy secures purchase orders from prospective buyers before each harvest cycle to ensure that supply matches demand. With a bulk of small holder farmers lacking the capacity to operate at scale, FarmCrowdy’s business model allows them readily access capital to hire more labour and cultivate larger farmlands.
ThriveAgric operates a similar model, but there’s a slight twist. Rather than fund farmers’ existing farmland, the company leases farmlands from communities and then contracts farmers to plant crops based on demand. ThriveAgric also secures purchase orders for the produce to ensure sales after harvest. Since its launch five months ago, ThriveAgric has contracted nearly 300 farmers in its farms mainly across northern Nigeria.
For Onyeka Akumah, CEO of Farmcrowdy, the company’s proposition is simple.”There is a lot of interest in agriculture among Nigerians, but there’s little guidance on how to go about it.” We want to educate them about the process in a way they can relate.”
Akumah is focused on channeling funds from middle class Nigerians with an interest in agriculture to small scale farmers who he says are often neglected. “It’s impact plus returns,” he says.
Since its launch in November 2016, Akumah says FarmCrowdy has attracted over 1,000 farm sponsors with a 76% rate of repeat investment. Another mark of its progress—and the public’s interest, FarmCrowdy timeline for securing sponsors for its available farms has been cut from six weeks when it first launched to less than 10 minutes, Akumah says. ThriveAgric has also seen a high level of interest: Uka Eke, co-founder of ThriveAgric, says the company has seen a “400% increase” in farm subscriptions since launch earlier this year.
To protect investors’ funds, both ThriveAgric and FarmCrowdy insure farms during the harvest cycle.
Beyond providing the farmers with access to capital and guaranteed sales, both startups are also focused on improving the value chain of agriculture by providing technical support to farmers through mobile devices and periodic visits by specialists who educate farmers on modern farming techniques in a bid to ensure higher efficiency for yields and better produce. (Akumah says FarmCrowdy is focused on production and sales rather than storage at the moment.)

Should crowdfunding farms become a mainstream practice among Nigeria’s middle-class, the government could inadvertently see its dream realized. But to achieve that level of adoption in the long-term, Nubi Kayode, an Ireland-based Nigerian who’s invested in farms with both startups, says they must look beyond the internet. “The internet works for the diaspora market,” he tells Quartz. “For local customer acquisition, they should look to have more physical retail presence to increase accessibility for people who want to get involved.”

Source: Quartz Africa