The Nation Newspaper

Tag: Akinwumi Adesina

  • Curious investment

    Curious investment

    •Nigerians want to feel the impact of govt’s policies in agric sector, not rhetoric that is the minister’s hallmark

    COULD it be true that private sector investment in Nigeria’s agricultural sector since 2011 is worth over $8billion (about N1.25trillion)? This agitating question arose as a result of Dr. Akinwumi Adesina, Minister for Agriculture and Rural Development’s assertions at a News Agency of Nigeria (NAN) Forum in Abuja. He said that: “In the last two years, we have been able to attract $8 billion of private investment commitment into the agriculture sector and $4 billion is being implemented as we speak.’’ Where then is the visible impact of such big investment?

    Adesina attributed the curious investment to the ‘positive impact’ of the Federal Government’s Transformation Agenda on agribusiness. He gave names of companies that have greatly invested in the sector to include Dangote Group (about $9billion investment in petrochemical plant and fertiliser manufacturing plant); Indorama, an Indonesian company which he claimed invested $1.3 million in fertiliser manufacturing; and Notore’s $1.5 billion investment to expand its fertiliser manufacturing plant in Nigeria.

    The minister also said that Syngenta, the world’s leading seeds production and specialised chemicals/pesticides company equally established a company in Nigeria that has so far employed 14 Nigerians, but did not put value on the worth of its investment. He attributed the companies’ interests in the country to the ‘working’ policies of government in the sector. But the truth is that these private initiatives, even if they are true, are long-term investments that cannot meet the immediate, short and medium term agricultural aspirations of Nigerians. Where is concrete evidence of government’s quick intervention to quell the thirst of Nigerians for agricultural benefits?

    We are surprised that Adesina gleefully disclosed further without specifics/facts that the best performing stocks in the Nigerian market today were agriculture-related stocks, and this came about because of his purported government-induced enabling environment that has made agriculture to be seen now as ‘a viable and profitable sector capable of creating the money that the banks could lend to investors.’

    He also said, without providing facts, that banks now offer loans to farmers unlike before because of the inherent potential in the agric sector, consequent upon the Growth Enhancement Support (GES) scheme introduced by the Federal Government. According to him; “last year, the banks lent to those agro-dealers N3.5 billion. This year, the banks lent N20 billion to those agro-dealers.” We ask: Who are the beneficiaries of these loans and what are the names of the banks that gave the loans out? These, in our view, would aid public scrutiny of the entire process. It would not augur well if all government does is to reel out figures and claims without any means of ascertaining the truth, as has been the case in the grandiose achievements by the agriculture ministry under Adesina.

    Nigerians are more interested in empirical results from the sector and not mere rhetoric that has become the minister’s hallmark. The impact of the $4billion out of the $8billion invested into the economy has not been felt. For instance, who consumed the 240 metric tons of rice that the minister claimed was produced by 14 new rice mills in 2012? Has government installed the 100 large scale rice processing mills expected to produce 2.1million metric tons of rice annually with the $1.2billion it secured from ADB since 2012?

    It is a known fact that most of the rice consumed in the country is smuggled in through Benin Republic because of the high tariff imposed on rice importation by government. This makes nonsense of the erroneous official claim that the nation has reached 60 per cent sufficiency in rice production. Also, we call on the minister to tell us who the beneficiaries of the about two million new jobs promised by him to have been created for rural dwellers since 2012 are? Above all, the minister should engage in more rewarding agricultural ventures for the benefit of motherland than his current rhetoric.

  • FG distributes start-up kits to 400 livestock trainees

    FG distributes start-up kits to 400 livestock trainees

    The Federal Ministry of Agriculture and Rural Development in collaboration with the Federal College of Animal Health and Production Technology, Moor Plantation, Ibadan has distributed start-up kits worth millions of naira to about 400 women and unemployed youths that benefited from the three weeks vocational training on livestock production.

    The start-up kits include 150 day old chicks, 100 fingerlings, feeds, medicine and a sum of N5000 each to the beneficiaries.

    Speaking at the closing ceremony of the training yesterday, Minister of Agriculture, Dr. Akinwumi Adesina, said agriculture is the only means by which the country can reclaim its lost economic glory.

    Stating that the programme is one of the strategies being adopted by the Federal Government to revamp the agricultural sector, Adesina, who was represented by an official of the ministry, Mrs. Cecilia Adewoye, noted that sustainable agricultural development is one of the main prerequisites for growth and stability of the economy of an agrarian nation like Nigeria.

    He stated that the training will go a long way to reduce poverty through increased food production, which he noted will ensure food security and drastically reduce unemployment.

    Earlier in his welcome address, the Provost of the Federal College of Animal Health and Production Technology, Dr. Demola Raji, said that the training is timely; adding that it is one of the ways the government can diversify the country’s economy in the face of global economic meltdown.

  • FG, BOA sign pact on N2.4b cassava bread fund

    FG, BOA sign pact on N2.4b cassava bread fund

    The Federal Government has said that the Bank of Agriculture (BOA) and Bank of Industry (BOI) are to manage disbursement of the N9.9b cassava bread fund released by President Goodluck Jonathan.

    The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, disclosed this at the signing of a Memorandum of Understanding (MoU) with the BOA yesterday in Abuja.

    The BOA is to manage N2.4billion of the fund in collaboration with 13 key private stakeholders, while N4.3billion will be disbursed by the BOI to support Small and Medium Scale Enterprises (SMEs) that are actively involved in cassava processing.

    Adesina said that out of the N2.4billion, about N912m will be spent on farm mechanisation support for cassava farmers, while N780 million will be used to support the farmers on planting materials, with N796million to be used in providing agro-inputs such as seeds, fertiliser, among others.

    The minister emphasised that each division of the N2.4billion will be disbursed like the Growth Enhancement Support Scheme (GES) such that 50percent of the fund will be given to farmers as loan, while the remaining 50percent would serve as grant from the federal government.

    According to him, the Managing Director of BOA, Dr. Mohammed Santuraki, was leveraging money for the states through the bank’s agreements with state governors.

    Adesina said, “It will be 50percent grant and 50percent loan. And you will agree with me that this is a huge step forward in terms of supporting our farmers to produce more cassava. Let me also say that we are delighted with the Bank of Agriculture. Every time I see the MD, he is always signing new agreements with states executives.”

    Earlier, the Permanent Secretary in the Ministry, Mrs. Ibukun Odusote, said the agreement would consolidate existing relationship between the Federal Ministry of Agriculture and the BOA.

    She noted that the inclusion of cassava flour into bread making was aimed at partially substituting huge wheat import with High Quality Cassava Flour (HQCF).

  • ‘Nigerian farmers to earn $800m from cassava chip export’

    The Minister of Agriculture, Dr. Akinwumi Adesina, yesterday said Nigeria has secured about 3.2 million metric tonnes (MT) of cassava chips for export to China, which would give farmers and processors over $800 million.

    Adesina spoke in Abuja at this year’s Korean International Cooperation Agency (KOICA) Alumni Association’s gathering.

    He said the nation had also attracted $4 billion in executed letters of intent for investments in agriculture.

    The minister, who was represented by an Assistant Director, Mr. Femi Olaleye, said the World Bank, African Development Bank and the International Fund for Agricultural Development (IFAD) were putting in about $2 billion to support Nigeria’s agricultural transformation.

    Adesina said: “Nigeria has secured 3.2 MT of cassava chips for export to China. When concluded, this will earn farmers over $800 million. It is commendable that KOICA is further complementing these efforts with the support of the establishment of cassava processing centres in Kogi, Enugu and Ogun states.

    “The impact of the Agricultural Transformation Agenda has been huge for Nigeria. In just one year, we have produced an additional 9 million MT of food. At the same time, our food imports declined by $5.3 billion. Over 2.7 million farm-jobs were created, or 77 per cent of our overall target.

    “To reduce Nigeria’s almost $4 billion import bill on wheat annually, the government had to embark on the cassava flour substitution policy to replace some of the wheat flour used in bread and confectionaries.”

    The minister said some of Nigeria’s top bakers had incorporated 20 per cent high quality cassava flour into baking their bread.

    He added: “As the commercialisation of cassava bread reaches its peak, it will reduce our wheat import bill by almost $800 million and put the money back in the pockets of Nigerian farmers, processors and bakers.

    “To accelerate the production of high quality cassava flour, the government is supporting the private sector to access cheap financing from China, through the China Exim Bank, to import and establish eight large-scale cassava-processing plants.

    “The low interest financing from the china Exim Bank is in the tune of $1.2 billion. To further scale up nationwide production and commercialisation of cassava bread, President Goodluck Jonathan established a $60 million cassava-bread fund.”

    South Korean Ambassador Hyung Choi said he realised that true partnership was important.

     

     

    He said KOICA was willing to partner the private sector and non-governmental organisations (NGOs) to utilise the sector’s dynamics and promote public awareness and participation among civil societies.

    The envoy noted that the “Miracle of the Han River”, which transformed his country, was possible in Nigeria.

    The Chief Resident Representative of KOICA in Nigeria, Jung Sang-Hoon, said last year’s KOICA’s total aid volume was about $445.2 million.

    He said Asia received a major portion of the aid (46.9 per cent), followed by Africa (20.4 per cent).

    He said: “Aid to Africa expanded gradually in an effort to fulfill the MDGs in a region concentrated with Least Developing Countries (LDCs).

    “KOICA’s project map covers about 8 states in Nigeria, Katsina, Gombe, Yola, Minna, Abuja, Kogi, Enugu and Ogun. Its focus sectors will cover Human resource development, Governance, Agriculture, Vocational Training and Education.

    “KOICA has also designed numerous courses for its members in Nigeria, including scholarships in various sectors of the economy.

    “KOICA is striving to increase aid impact to our developing partners by making the best use of its limited financial resources in areas where Korea has a comparative advantage.”

  • FG to provide subsidy for rice farmers in Kebbi – Minister

    FG to provide subsidy for rice farmers in Kebbi – Minister

    The Minister of Agriculture, Dr Akinwumi Adesina, has said that the Federal Government will provide subsidy for rice farmers in Kebbi to improve commercial production of the crop.

    Adesina made the statement in Suru Local Government Area on Tuesday when he launched the new Kebbi Guarantee Minimum Cost of Rice scheme.

    The minister was on a one-day inspection visit to rice farms in Argungu, Suru and Jega local government areas.

    The minister said the ministry would transport free rice from the farm clusters to warehouses and processing centres, adding that the official cost of rice was N6,500 per bag under the scheme.

    He reiterated the commitment of the Federal Government to ban the importation of rice by 2015.

    Adesina said President Goodluck Jonathan was committed to transforming agriculture and ensure self-reliance in food production.

    He said the Federal Government spent N1 billion on the importation of rice but stressed: “we cannot keep foreign farmers employed while our farmers and potential in rice production are ignored.”

    He commended the efforts made by the state toward achieving the Agricultural Transformation Agenda aimed at producing 20 million tonnes of rice for domestic consumption in 2015.

    “The Federal Government would support fully the efforts by the state on rice production,” he promised.

    Adesina said the Growth Enhancement Scheme (GES) in the state included the construction of silos which had capacity to hold 100,000 tonnes of produce as well as two one-stop shops in Dakingari and Argungu.

    He said 70,000 out of the targeted 80,000 farmers had been registered in the state.

    He said the release of 92,000 bags of fertiliser to farmers, 480 tonnes of seedlings and distribution of 1,500 bundles of planting materials would be upgraded.

    He said 700 tonnes of rice seedlings provided in the past as part of the GES would also be upgraded.

    Gov Saidu Dakingari said the state government would sustain its priority on the commercial production of rice, especially during the dry season, to avoid the destruction of the crop during the rainy season.

    The governor said the rice production initiative was part of efforts by the government to ensure security through job creation and also increase the income of farmers.