On 15th of August 2016 when the Federal Government launched the Green Alternative Policy under the leadership of the Minister of Agriculture and Rural Development, Chief Audu Ogbeh with his counterpart, Senator Heineken Lokpobiri, the vision was mainly to diversify the nation’s economy from oil.
The policy also known as the Agriculture Promotion Policy (2016 – 2020) was part of deliberate moves to make agriculture the mainstay of the economy, contributing majorly to the Gross Domestic Product (GDP) and improving on gaps which existed in the Agricultural Transformation Agenda (ATA) of the past administration.
The federal government, through the Ministry of Agriculture and Rural Development, rolled out policies to check the alarming, continuous food imports and increase local production of staple foods including rice, wheat, and dairy products among others. The four-year development plan mapped out strategies to realise four major goals in partnership with the State governments. The thematic focus includes food security, import substitution, job creation and economic diversification.
In the area of food security, rice cultivation got a special attention. The method of rice production among farmers across the states took a different dimension. It mapped out strategies to ensure rice is being cultivated in most states across the country. The rationale is due to the fact that rice remained major staple food Nigerians consume daily but with an outstanding deficit of 6.3 million tonnes and local production of about 2.3 million tonnes as at 2015. The wheat deficit was about 4.7 million tonnes with a supply 0.06 million while Soya beans was 0.75 million and local capacity was 0.06 million. The gaps were huge.
In order to meet these demands, the ministry sought supports of the Central Bank of Nigeria (CBN), through the Anchor Borrowers Scheme (ABS) to provide finance for the rural farmers from 2015 dry season farming and wet season rice and wheat farming in 2016. Anchor Borrowers’ programme is an intervention aimed to fast-track access of rural farmers to finance for better productivity. This entails the provision of agricultural credit to finance the production of rice, wheat, ginger, maize and soybeans in Kebbi, Niger, Kaduna, Kano, Enugu, Benue, Zamfara, Anambra and Kwara States.
It is important to note that state governments took advantage of the intervention to maximise production on the basic farm co mmodities. Lagos State for instance, went as far as signing a partnership agreement with the Kebbi State government to produce the popular LaKe Rice. Within a short time, rice imports declined, especially with the support of policies that discouraged its importation and smuggling while local production also soared higher from 2015 till date. These interventions were aimed to meet national requirements of paddy and milled rice set at 2018.
The FMARD further established 40 large scale rice processing plants and 18 High Quality Cassava Flour plants with a stake commitment of China EXIM (85 per cent) and Nigeria Bank of Industry (BOI) (15 per cent) through concessional credit facilities of US$383,140,375.60 for the rice mills and US$143,722,202.40 for the HQCF Plants. The locations are Abia (Abriba), Kogi (Agbadu), Akwa-Ibom (Uyo), Kwara (Sare), Anambra (Ihiala), Lagos (Epe), Benue (Makurdi), Nassarawa (Gbude), Cross-River (Obubra), Ogun (Ijebu-Igbo), Delta (Mbiri), Ondo (Ore), Edo (Iraoko), Osun (Iwo), Ekiti (Itapaji), Oyo (Oke-Ogun), Enugu (Ebenebe), Oyo (Iseyin). Environmental Impact Assessment (EIA) is on-going for the ultimate private sector–driven initiative.
FMARD is now embarking on a programme of distribution of rice mills, of ten tonnes per day capacity, 20 tonnes a day, 40 tonnes a day, 50 tonnes and a few 100 tonnes. Collectively, between them, the capacity for rice milling will be close to 3,000 tonnes a day nationwide. That is expected to close the gap between paddy availability and mills to process it.
From available records, there is ongoing plan to also establish 10 large scale rice processing plants and 6 High-Quality Cassava Flour plants to be owned and operated by the private sector. According to the Ministry, the mills would be funded by the Special Rice Processing Intervention Fund and the World Bank Assisted Agricultural Development Policy Operation [AgDPO] Funds. Necessary approvals were obtained for an “original equipment manufacturer (OEM) contract” process via the “Flourtech Engineer PVT Ltd, – Rice Mills” and the “Haiyang Union Machine & Equipment Ltd, China &Korat SW Group 2007, Thailand – HQCF Plants.” The rice plants locations are Argungu (Kebbi), Yargeda (Zamfara), Permabiri (Bayelsa), Badeggi (Niger), KatsinaAla (Benue), Idah (Kogi), Kubau (Kaduna), GidanMaiwa (Bauchi), Imope (Ogun), and Ezira (Anambra), HQCF plants locations are Ore (Ondo), Ojoowo (Ogun), Abriba (Abia), Abraka(Delta), Obubra (C/River) and PakaLafia (Nasarawa).
One of other remarkable initiatives developed by the ministry was the national soil map. There had not been evidence to show that the use of the generic NPK fertiliser everywhere has necessarily improved farm production significantly to justify its continued application as one-size-fits-all soil fertility remedy. So, the map basically is to determine the right fertiliser that is applicable in a particular state with the promotion of the use of soil-specific fertiliser formulations. Unlike previous years where the same fertiliser is applied by farmers across the country, the map was designed to guide farmers on what fertiliser to adopt in order to get the maximum yield.
Prior to the launched green alternative, Nigeria was importing foods to the tune of $22 billion annually, including fruits. As a result, the country cannot be classified as food-secured. The limited harvests produced by the local farmers mostly got rotten due to lack of storage facilities.
The net impact of these was limited job growth across the agricultural value-chain from inputs production to market system. Ironically, as these problems persist, the country was exporting jobs abroad.
Fertiliser supply
A resurrected interest in agriculture has brought in its wake growing interest in smallholders. Nigeria’s fertiliser market is growing. Baring the restriction placed on the transportation of urea for security reasons, Nigeria is launching into a new realm of responding to local fertiliser needs by promoting the blending of fertiliser locally to suit specific soil on the basis of findings in the national soil map. Field reports on the use of micronutrient inclusion in fertiliser in some parts of Nigeria have justified the need for a widespread and nationwide use.
Replacing the unbalanced NPK 15-15-15 with other formulations as a basal application in the Urea Deep Placement Technology has been reported to have led to increased yields by between 30 per cent and 80 per cent in a number of cases in rice, maize and sorghum. These results have inspired the Federal Government’s policy directive to use fertiliser blends recommended from soil maps, beginning from this cropping season. Nigeria has 108 balanced fertiliser recommendations for all crops and for all 36 States and the FCT, and the Government has signed an agreement with the Government of Morocco for the supply of fertiliser raw materials on concessionary terms to boost local blending to facilitate making soil and crop-specific fertiliser blends available and accessible to smallholder farmers.
In 2016, price of fertiliser especially NPK, rose to as high as N11, 000 contributing largely to hike in price of staple foods in the market. Urea which is an additional input after the application of the NPK sold at about N7, 500. Local farmers clearly were not finding it easy until the federal government came up with an initiative that encouraged local blending.
As a result of the several bottlenecks, the Presidential Fertiliser Initiative came into existence having Fertiliser Producer and Suppliers Association of Nigeria (FEPSAN) and the FMARD as the implementing partner. The target was to produce One Million Metric Tonnes of fertiliser for local farmers across the country for the 2017 wet season and 500, 000 metric tonnes for dry season farming. It was the outcome of President Muhammadu Buhari’s meeting with the King of Morocco. The deliberation among others was to facilitate the export of Diammonium Phosphate (DAP), through OCP Group, Morocco to ensure a steady supply of the raw material for local production of fertiliser.
The other raw materials include the Muriate of Potash (MOP), sourced from Europe and Russia while Limestone Granules (LSG) was locally sourced from the West African Fertilizer Company limited, Okpella, Edo State. This deliberate effort was to meet fertiliser deficit in the country and ensure the nation locally blend the input.
Remarkably, the fertilisers are mixed in about 11 blending plants which were initially working at lower capacity across the country. Local fertiliser blending plants took ownership of the project, engaged labour and produced the farm input at a reasonable cost of N5, 000.
“From that 14th of December, 2016 to 14th February, 2017, we gave farmers free gift. They started to receive fertiliser at N5, 500. Agro-dealers also got theirs, when they come to a plant like this, they will pay N5, 000, and sell for N5, 500,” said FEPSAN President, Mr Thomas Etuh while responding to an inquiry.
Donor Support Interventions
Aside from the commitment to increase food production and create jobs across the value-chain, the federal government enjoyed interventions from the international development partners. The foreign organisations such as RUFIN, IFAD VCDP, World Bank Fadama project, RAMP among others have in no small measure contributed towards the realisation of the objectives of the green alternative initiative.
A number of states with high potential in the production of selected staple crops are being supported to increase farm yields, engage the youths, help rural families, provide finance and ultimately create markets to boost their returns. While some development partners focus on rice and cassava, others give more attention to sorghum, millet and wheat.
VCDP
Mr Peter Okonkwo is a member of the all-male Great Minds Multipurpose Cooperative Society. He cultivates 1 hectare from 3,850 hectares of land rice farm allocated to his group. Okonkwo harvested a yield of 7 tonnes from his one hectare rice farm in the last season, unlike his usual 2.3 to 2.5 tonnes per hectare yields. He is one of 20 other members in one cooperative group setup by the VCDP Lower Anambra Irrigation Project (LAIP) in Anyamelum local government area of Anambra state. All thanks to the IFAD-funded Value Chain Development Programme (VCDP) programme which made the fete a reality, working to support rural farmers in form of inputs and training on good agronomic practices.
The IFAD- funded VCDP works to improve the income and food security of poor rural households with particular attention to women and youths engaged in production, processing and marketing of rice and cassava. It focused on enhancing rice and cassava value-chains in Nigeria.
In 2016 alone, production figure showed that VCDP made a significant contribution of 55,513 MT of rice and 184,377.6 MT of cassava to the national food basket. This represents a contribution of $36 million (N11 billion) to the country’s GDP in 2016. The income-investment analysis indicates that for every $1 invested by VCDP in 2016, $1.2 was realised from sales of produce alone.
The programme, largely funded by IFAD had a total budget of $104.4 million. IFAD provided $74.4 million funding, the federal government supported with $9.9 million, state governments contributed $10.4 million, local government councils $4.3 million, complementary financing amounted to $2.8 million and beneficiaries $2.1 million.
Basically, the federal government is implementing the IFAD-VCDP project in six (6) States, namely: Niger, Ogun, Taraba, Benue, Ebonyi and Anambra. VCDP became effective in August 2014 and disbursement effective in March 2015. While the programme is expected to wind-up on June, 2020, its goal was to reduce poverty in 53, 480 households and enhance accelerated economic growth sustainably.
The programme is also targeted to sustainably create about 6, 000 jobs through production, processing and marketing of rice and cassava in the six states. So, between January to November 2016, about 4, 000 jobs have been created and N418.9million worth of farm inputs have been distributed to 20, 879 farmers working on 1,067.2 hectares.
Within the last two years, VCDP made good progress of effectively implementing the programme objective on the two crops. Through group and cluster development, it encouraged working with the private sector to facilitate service delivery to smallholder farmers; identified viable business opportunities within the commodity chains for youth; developed arable land to increase women and youth access to land; shared innovative agronomic practices with farmers to enhance their productivity; and engaged youths in agriculture.
A unique model which so far has helped the rural farmers was the ability of IFAD-VCDP to arrange major off-takers such as Olam, Onyx and Popular Farms, who provide co-funding in the form of cashless credit services to enable farmers, have access to agri-inputs and enhance their productivity. This has luckily helped cut down the incident of post-harvest losses. Farmers do not have to wait or search for the market to sell their produce as the off-takers are readily available to buy the harvests, having knowledge of the fact that there is increasing buy-in by the state governments.
The programme facilitated an innovative Commodity Alliance Forum (CAF), which empowers smallholder farmers to engage and transact businesses with major private sector players in each state. The platform involved key stakeholders in input delivery, bulk purchase of farm produce such as factory raw materials, financial institutions with credible credit delivery services and farmer groups.
In Benue state, for instance, Olam a major player in the nation’s rice sub-sector is working with 3,000 rice farmers under the alliance.
As of date, 30, 100 verified farmers with names and locations are benefiting from various services of VCDP to increase their production and productivity and enhance their income. Out of this figure, 21,245 farmers (13,456 for rice and 7,789 for cassava) who produced a credible business plan were provided with 50 percent of the input requirements in line with design. About 2,328 FOs, 103 per cent of the Life of Project (LoP) target are using bulk purchase method to procure their inputs, and 2,135 FOs, representing 95 per cent of the LoP target are registered with the Department of Cooperatives.
So far, the programme has trained 925 group leaders, representing 14 per cent of the LoP target, to strengthen groups’ engagement with the private sector players and provide effective services for their members. It has developed a number of knowledge products, including women inclusion strategy, youth involvement in agribusiness strategy, and package of best agronomic practices. It has so far increased their sales, generate more income and improve their living standard.
Mr. Mbon Sumaka, a rice farmer in Benue, one of the states participating in VCDP is excited with the market linkage facilitated by the programme. “I am grateful to VCDP for linking me and other group members to Olam. We are happy as we know all our produce will be bought by Olam after harvesting. We are ready to go into farming on large scales with this arrangement and this will go a long way to boost the economy”.
So far, 667 MoUs have been signed with off-takers in the six programme states while 143 contractual agreements have been formalised and 30, 100 farmers linked to off-takers.
FADAMA
FADAMA, as popularly known among stakeholders, is a World Bank project usually in partnership with the Federal Ministry of Agriculture and Rural Development (FMARD) targeted to support small holder farmers to increase productivity and access to finance. The success story of this project has been outstanding right from the FADAMA I, II, III and recently FADAMA III Additional Financing (AF).
Within a short period, the number states participating in the World Bank intervention project has increased considering its immense impacts at the grassroots.
Between 21st and 22nd March, 2017, the FADAMA office flagged-off dry season irrigation rice production in Plateau state as part of measures to ensure all year round production of rice. Even though the event witnessed the presence of the Senior Technical Adviser (STA) to the minister on International Donor, Engr. Auta Appeh, Plateau State Governor, Bar. Simon Lalong, Task Team Leader (TTL) World Bank country office Abuja chief Dr Adetunji Oredipe including FADAMA National Project Coordinator, Tayo Adewunmi the immediate beneficiaries of the project were not left out.
For the dry season rice farming, about 100, 000 hectares of land have been cleared by the state government. So far, a total of 11 production clusters (PCs) have been prepared consisting of 57 production groups, with a benefiting population of 570, comprising 381 males and 189 females. The state is rich in terms of vegetation for both dry and rain season farming.
The National Project Coordinator, Mr. Tayo Adewumi, in his message, gave a brief on the implementation of Fadama III-AF in Plateau state. About 27 Tomato production clusters made up 222 production groups have been funded through a well-developed business plan. Also, funded were 11 rain-fed rice PCs with 222 PGs.
Speaking on the Fadama Farmers Micro Finance Bank (FFMFB) Limited, a fresh initiative by the FADAMA III-AF Office, It was designed in December, 2015 to support 570 farmers comprising 381 males and 189 females.
Lalong, in his remark at the event disclosed that the state through the Fadama project has supported about 55% of rice farmers in the state, with an increased yield from 2.8 tonnes per hectare to 4.5 tonnes per hectare representing 60.14% increase. “About 1,395 permanent jobs for rain-fed and 13,950 indirect jobs were created for youths and women during harvest. During dry season implementation, 570 permanent jobs were created and 2, 850 indirect jobs.
“As at baseline, indicators showed that farmers’ income increased from N108, 501.76 to N390, 220.65 per annum representing 20% of farmers surpassing poverty threshold.” According to him, the arrangement has been made for a 16.9KM Fadama feeder road in Shendam, Langtang South, Kanke, Mangu, Bassa and Jos East Local Government Areas. This is expected to ease transportation challenges faced by rural farmers. Some of the civil service workers and pensioners were as well encouraged to improve their livelihood by engaging in agricultural related activities while they are still in service.”
RUFIN
Rural Finance Institution Building Programme (RUFIN) is a $27.2 million initiative of the International Fund for Agricultural Development (IFAD) and the Federal Government of Nigeria. It was a project coordinated by the federal ministry of agriculture and rural development in 12 States and 36 local governments to help realise the set objective of alleviating poverty with particular emphasis on women, youth and the physically challenged. Some of the benefitted states include Adamawa, Bauchi, Katsina, Zamfara ( North Zone), Benue, Nasarawa, Oyo, Lagos (Middlebelt/South West zone) and Akwa Ibom, Anambra, Imo, Edo in the Southern Zone.
Purpose of the initiative ultimately was to enhance access of rural population to viable and sustainable rural financial system in order to expand production, improve on-farm productivity and micro small rural enterprises. “Our group-Nneoma Union Group heard that FAME MFB was giving out loans to people. We went there and were informed by the bank that they have accessed the MSMEDF. We applied and got a loan from FAME MFB. I received N70, 000 which I invested in my business. My business is doing well and I can now support my husband all thanks to RUFIN,” said Mrs. Adaoma Timothy, Member Nneoma Union Group, Itu-Ezinihite LGA, Imo state. Incidentally, the programme will be completed on 31st March, 2017.
However, about $5,616, 000 has so far been disbursed by the implementing agencies and government institutions. They are the Central Bank of Nigeria (CBN), Bank of Agriculture (BOA), Federal Department of Cooperatives (FDC) and the National Poverty Eradication Programme (NAPEP).
Omolara is one of the beneficiaries of the intervention in Lagos.
Access to soft loans and other finances by farmers had been a serious challenge to boost productivity. It is often difficult for the commercial institutions to lend to farmers at a considerate interest rate. Rural farmers are either given loans at a 2-digit interest rate which is almost impossible to repay or never given. So with the initiative, RUFIN promoted good policies that created satisfactory working environment for grassroots financial institutions to benefit. It improved the lending environment, funds flow and sustainability support to the microfinance sector. It engaged in training and capacity building to improve their services in order to facilitate easy access to credits.
Microfinance Institutions (MFIs) were strengthened and the programme eventually established linkage between these institutions and formal financing institutions and down to the rural dwellers. “As a result of the capacity building we received from RUFIN, we developed rural business plan and have started implementing it. Our customer base has increased; we have been able to spread our tentacles. We are doing business with 27 women groups mentored by RUFIN. More rural people are accessing credit facility from us and zero default rate. RUFIN groups don’t default, they are highly responsible.
“Aside from capacity building, RUFIN also provided us with ICT equipment such as laptops, printers, accounting software which has helped us in keeping records. We now have improved financial reporting. It has been a wonderful working relationship with RUFIN. The impact we see today is as a result of this technical support by RUFIN,” said Mr. Ayodele Odufowokan, Head, Group Micro loan/Rural Finance, Excel Microfinance Bank, Eruwa, Oyo state. Credit flow from MFIs to the rural communities has cumulative figure of N30.983 billion till date. This is a huge jump from N47.1 million as measured in May 2011.The number of loan beneficiaries totalled over 714, 000 farmers.
As a result, at the community level, group members have developed savings habit and financial discipline. Capital base of farmers which was as low as N5, 000 – N6, 000 increased to N1-2 million and over 20,000 rural groups were formed and strengthened. They were eventually linked to financial services with about 40 per cent of them already lifted out of poverty.
Within two years, RUFIN’s sustained follow-up finally unlocked the MSMEDF to the financial suppliers in 2014 and N78.77 billion disbursed. RUFIN’s contribution of $1.5 million to the NIRSAL guarantee facility also eased Micro Finance Institutions (MFIs) R-MFIs access to the MSMEDF by reducing collateral requirements to only 5 per cent.
“About N8, 747,015,234 credit was accessed by over 80 MFIs including Non-Governmental Organsiations and Financial Cooperatives from MSMDF, NAPEP, BOA and other state government micro-credit initiatives. Household level lending to low income and poor rural dwellers has improved in contrast to the start of the programme. Number of MFBs rendering online returns to CBN increased from 20% in 2010 to 85% in 2015.”
“RUFIN’s support is immeasurable. Our capacity has been built on so many issues related to business management, record keeping, business plans and financial management. These training have helped us successfully manage our business. Before now, we were not doing internal savings but after receiving training on this from RUFIN, we started saving. Now we give internal credit to our members. In 2013, our group was linked to Bauchi Microfinance Bank and we got a loan of N140, 000 naira which was shared among group members. Each member received N20, 000 naira. We have repaid the loan and RUFIN is working to link us with Bank of Agriculture to access more credit. We are very happy, our business is growing. Now we can support our husbands to take care of family needs. May Allah bless RUFIN,” Hajia Aisha’tu Musa, Chairperson, Zumunta Durum Women Group from Bauchi Local Government Area, Bauchi state, made the assertions on the impacts of the interventions to supporting their livelihood.
According to available records, over 710,770 individual farmers and rural dwellers that benefited from RUFIN loan facilities, voluntarily saved about N16.149 billion as refund.
In conclusion, since some of these initiatives are tailored towards achieving the 17 Sustainable Development Goals (SDGs) of the United Nations, especially Goal 1 which centres on ending poverty in every form and Goal 2 targeted to end hunger, achieve food security and improved nutrition as well as promoting sustainable agriculture, it is imperative to build partnership to realise the Green Alternative and attain food sufficiency.
