The Edo State government appears determined to transform the state into the heartbeat of Nigeria’s agricultural revolution. The plan is to make agriculture Edo’s ‘New Oil’ by opening up the state for investments in agri-business. The state’s strategic push to prioritise agric via public-private partnership could be the template to galvanise other states in search of life without oil. Asst Editor CHIKODI OKEREOCHA looks at recent policies and initiatives that may have positioned Edo to harness agriculture’s immense capacity to create jobs and industrialise the state.
Nigeria’s intrinsic potential lies beyond oil. And harnessing this potential, mostly in the non-oil sectors such as manufacturing, agriculture and agro allied industries, solid minerals, Information and Communications Technology (ICT), entertainment and tourism, among others, has become imperative following the sustained decline in global oil prices which started since 2014.
The crisis foisted various fiscal and economic challenges on the nation such as sharp drop in foreign earnings, decline in foreign reserves and unstable macro-economic environment. State governments appear worse hit. Many of them could not pay workers’ salaries or meet other financial obligations, prompting huge financial bailout by the Federal Government for some distressed state governments.
This has forced a strategic rethink in favour of diversifying the economy away from oil, as the nation’s age-long over-dependence on proceeds from oil is believed to have triggered the crisis that later snowballed into a debilitating recession. Since then, economic managers at all levels particularly those in the states have been on their toes in a bid to diversify their economies by exploiting opportunities in the non-oil sector particularly agriculture.
However, while it appears to have been motion without movement in the Federal Government’s economic diversification agenda and indeed, some state governments’, the Edo State Government, The Nation learnt, has moved a notch higher in transforming its intention to diversify into practical actions.
Rather than hope for a major rebound in oil prices, which appears to be the disposition of the Federal Government and some state governments, the Governor Godwin Obaseki-led administration in Edo State may have resolved to walk the diversification talk by positioning Edo for life without oil by prioritising the agric sector.
Intent on harnessing the huge investment opportunities in agric, the government, under Obaseki’s watch, put the right foot forward by drawing up an ‘Agricultural Roadmap’ anchored on the state’s comparative advantage in oil palm production, cassava and maize cultivation, as well as other key crops such as rubber, cocoa and timber.
As part of efforts to operationalise the agric roadmap and ultimately, make agric Edo’s ‘New Oil’, the governor is said to have been courting local and international investors to invest in agri-business. One of the State Government’s investment tours to South East Asia paid off when Singapore-based Tolaram Group confirmed plans to invest in oil palm and cassava cultivation in the state.
Tolaram Group, which is headquartered in Singapore, with business interests currently in Asia, Africa and Europe, has a diversified portfolio consisting of consumer goods, infrastructure, energy, digital services and other interests, which include distribution, financial services, paper products, real estate and textiles.
The Group’s proposed investment in Edo, according to sources conversant with the deal, is estimated at $50 million, and the bit on cassava is primed to produce ethanol. While in Singapore, the government also sealed deals covering investments in agriculture, specifically, oil palm and cassava to feed the processing plants of Tolaram Group.
The investment is expected to contribute to efforts at diversifying the state’s revenue base and empowering people to go into farming with the assurance that companies in the state would buy off produce from them at competitive prices.
The Edo State Saro Farm in Sobe, Owan West Local Government Area, where harvest is ongoing, is also seen as a template for leveraging a robust public-private partnership to open up a state’s investment opportunities to potential local and foreign investors.
The Nation learnt that it was the outcome of a Public-Private Partnership (PPP) initiative with Saro Agro Sciences Ltd., a leading company in agribusiness. The maize farming was conceived by Obaseki to create jobs for thousands of youths across the state.
According to him, the maize farm was part of his administration’s accelerated agriculture initiative to boost job creation in the state. He said between 50, 000 to 80, 000 agricultural jobs would be created before the end of the year in the state.
The first phase of the initiative targets job creation for 1,000 farmers through the cultivation of 5,000 hectares of maize farms across five local government areas of the state.
Another key aspect of the government’s policies on agriculture is the contract farming scheme that has opened up farmlands to investors with enough financial muscle to undertake large scale farming.
This would not only ensure that lands that hitherto lay idle will be put into good use, but also that the locals would be gainfully employed.
Edo fertiliser plant is game changer
One of the key challenges to profitable agriculture in Nigeria is lack of certified inputs that guarantee the best of yield. To tackle this, the Edo State Government recently revamped the hitherto moribund Edo Fertiliser Company Limited in partnership with Wacot Limited.
The fertiliser plant, which is a public-private venture, has the capacity to produce about 60, 000 metric tonnes of fertiliser per annum. The state also has a standing public-private partnership arrangement for the supply of high quality seeds to farmers in Sobe and other farm settlements in the state.
At the inauguration of the plant, Vice President Yemi Osinbajo expressed delight at the 500 direct jobs created by the investment, noting that more youth will be engaged as a result of the ancillary economic activities that would be generated by the fertiliser plant.
“The President Muhammadu Buhari administration is committed to making it easy for investors to do business in the country. We want to achieve this through the promotion of transparency and efficiency. We want every state to be involved in this drive and create the enabling environment for business to thrive in their domain,” Osinbajo said.
The revamping of the facility was part of the revitalisation of fertiliser blending plants across the country. It was the direct consequence of the presidential initiative to diversify the economy from crude oil, boost farming activities as well as develop the agriculture value chain.
Osinbajo added that agricultural activities in the country could be enhanced significantly if there was improved access to inputs, hence the drive to make fertilizer, which is a major farm input, easily available and accessible to farmers in Nigeria.
Osinbajo explained that the blending plant would also complement Obaseki’s agricultural development initiative, which is aimed at improving investment in agriculture via public, private partnership as well as creating jobs for youths across the three senatorial districts of the state.
Obaseki, who described the commissioning of the plant as “a major milestone”, added that “The aim of revitalizing this plant is to make the state self-sufficient in food production and enable farmers get fertilizer at affordable prices. We in Edo State are determined to make food available in the country.”
He added the facility would go a long way in providing fertilizer for neighbouring states such as Kogi, Delta, Ondo and Anambra among others as it was the only blending plant in the region.
He commended the Federal Government’s leadership role in the execution of the Presidential Fertilizer Initiative as well as the management of WACOT for partnering with the Edo State Government in revamping the plant.
The Group Managing Director of WACOT, Mr. Rahul Savara, said the Presidential Fertilizer Initiative has made local production feasible and sustainable in the country, assuring that the Edo Fertilizer and Chemical Company would be made up of 95 per cent indigenous workers.
Nexus between youth, agriculture and jobs
The State Government’s plan is to build a strong nexus linking youths, agriculture and jobs. It believes that tapping opportunities from its vast arable land to provide jobs for teeming youths would quell job crisis. The idea is hinged on the thinking that agriculture has a huge potential for job creation, which affords the people better life.
At the opening ceremony of Edo Fertilizer Plant, Obaseki said the plant was a key peg for engaging youths in the state, especially as it provided needed input to fast-track agricultural development. According to him, “This achievement is an open call to other investors to bring in new technology, create more jobs and expand our economic opportunities.”
Much as these efforts are directed at opening up Edo for agri-business investment, experts say that it also tells of the governor’s long-term plan to make the state the heartbeat of agricultural revolution in Nigeria. Going by the steps taken so far, not only will more investments flow into the state, but the people are in a determined march to progress.
Dangling the proverbial carrot to investors
Aware that positioning Edo as an investment destination of choice will not be a tea party, the State Government as part of efforts to woe investors, has removed all the barriers to trade and investment.
One of such moves was the signing of the Private Property Protection Law (PPP) law. The law criminalises the activities of Community Development Associations (CDAs) in the state.
The CDAs were said to be notorious for harassing land owners by making them pay all sort of illegal levies and fraudulently sold people’s property until the PPP Law was put in place by the Obaseki-led government.
The passage of the PPP law effectively outlawed the activities of land speculators and grabbers, who had for years tormented investors in the state. This has cleared the space for investors to site factories and industries in parts of the state without fear of intimidation from anyone.
As part of efforts to woe investors, the State Government has prioritised infrastructure by creating a separate Ministry of Infrastructure to drive the realisation of the Gelegele Seaport, the expansion of the Benin Airport in partnership with the Federal Government and the construction of intra-city and inter-state roads amongst other projects.
The Nation learnt that work on the Gelegele Seaport is in progress as there is sufficient economic justification for its development. According to Obaseki, the facility would serve as an agro-processing zone and will be driven by the State Government and the private sector.
The governor explained that the seaport will be located where there is enough gas that can be used to generate electricity and power industries. “There is sufficient economic justification for the Gelegele port and we will raise funds from the private sector to develop the facility,” he said
Obaseki said the seaport is on course as his administration is talking to consultants who are currently working on the designs and conducting studies on water depth, the width of the river and the amount of dredging needed. He assured Edo people that a lot is being done to make the project a reality within the shortest and realistic time possible.
To further underscore its commitment towards preparing Edo for life without oil, the State Government has concluded arrangements to host a 3-day business/investment summit tagged, ‘Alaghodaro Investment Summit,’ with the theme ‘Envisioning the Future.’
Alaghodaro is a Benin catch phrase meaning ‘Progress’ or ‘Moving forward.’ According to its organisers, it will bring together top-notch Nigerian and International business leaders, investors, bankers, industry experts, policymakers and the academia to set the agenda for the state’s development.
The Alaghodaro summit is a parley for key investment discourse on Edo’s future, wherein manufacturers, industrialists, investors, agro-allied businesses would dominate and generate immense internal revenue, allowing the people the opportunity to pursue their affairs without worrying about the hues of the international oil market.
It will showcase how Edo State intends to partner with the private sector to leverage on its competitive advantage in different sectors for sustainable economic growth.
