Investors’ expectations of new agric minister
With the appointment of Audu Ogbeh, the new minister for agriculture and rural development, it is pertinent to bring to the fore again the expectations of stakeholders in the agriculture industry.
Agric investors in the country generally want the Muhammadu Buhari-led government to sustain the Agricultural Transformation Agenda (ATA) started in the immediate past government. This was the general expectations of the industry after the current president won the 2015, March 28 presidential polls. With the appointment of a new minister of agriculture, the industry watchers expect that the minister at the helm of the nation’s agricultural affairs would sustain and improve on the policies driven by the former minister of agriculture now president of the African Development Bank (AfDB).
Under the ATA, the focus of agriculture was changed from a national development project into a serious business led by the private sector. Therefore, government is simply expected to provide the enabling environment and encourage private sector players to invest not just in farming but all along the value chain of different crops and animals- from farm to fork and in agro-based manufacturing and services. The government would therefore be expected to make regulations that would encourage/boost private sector investments rather than those that would hinder agribusinesses.
Sotonye Anga, a commodity exporter and publicity secretary, National Cashew Association of Nigeria (NCAN) says “ATA has been so wonderful; it should be retained irrespective of the fact that it was started by another government, but it can be improved upon but must not be thrown out.”
Anga however urge the Buhari-led government to float a very large fund of about N1trillion to N2 trillion which will be an all-inclusive fund as soft loans for the various sub-sectors in the agric industry. He stated, “The new administration needs to accept that financing agriculture is quite expensive but crucial to full attainment of a green revolution and massive job creation. The fund will be needed to finance every aspect of the value chain of key commodities such as cashew, cocoa, gum arabic, oil palm and so on.”
Speaking further, Anga said, “The cashew industry for instance needs N50 billion to finance various levels of businesses in the value chain. But it is one thing to create funds, another is for it to be accessible to the real stakeholders in the industry.”
On how such loans should be operated, Anga says, “The demand for collateral is one factor hindering farmers and other agribusiness investors from accessing existing funds. Loans can be given through clear-cut identification. Every farmer or agribusiness player can be identified through databases and tracked down if they default in loan repayment. They definitely live somewhere, have phone numbers, have families, should belong to associations or have voters’ registration card. If they are given single-digit interest loans to improve their agribusinesses and attempt to default, let it be in their consciousness that the discipline the new president is known for will come to play. So they had better use the money for what it is meant for.”
Edobong Akpabio, a crop farmer and publicity secretary, NECA Network of Entrepreneurial Women (NNEW) also urge continuity of the Agricultural Transformation Agenda because many private investors have made heavy financial commitments.
Akpabio adds, “ATA has developed a life of its own. It needs to be maintained and improved upon.
For instance, the new president (with Audu Ogbeh, the new minister and his team) must not allow reintroduction of fraud into the fertilizer subsidy allocation to farmers. The Growth Enhancement
Scheme is working for us and should not be tampered with.” She however says the Buhari administration through the new minister must work at making access to land for agricultural purposes easier by getting the state governors to commit to it during their council of state meeting.”
Tunde Sanni, a fish farmer and former executive of Lagos state Commercial
Agriculture Development Association (CADA) also urges the Buhari administration to build on the Agricultural Transformation Agenda and maintain focus on agriculture as a revenue earner for the country since the price of crude oil has become erratic.
Sanni adds, “The government must also look into the strength of the dollar to the naira because it is affecting the cost of agricultural equipment which are still being imported.”
Ayoola Oduntan, poultry farmer and national president, Poultry Association of Nigeria (PAN) says the good policies of the past administration should be maintained in the Buhari government. Citing an example, he says there have been attempts by the immediate past government to increase maize production to ensure adequate supply to the poultry industry.” He however says the shortcomings in agricultural loans such as too short moratorium can be addressed by the new government.
Stakeholders in the agric industry also generally call for less stringent loan requirement especially the issue of collaterals which make it difficult for many to access the loans.
In a similar vein, Lekan Akande, chief executive Zarm Poultry Farm says there should be one digit interest loans for businesses in the agric sector.
Despite the numerous achievement of the previous minister of agriculture, the sector is still faced with many challenges. The challenges are poor state of roads, high input cost, poor storage facilities, access to finance and market access. For Nigeria to achieve food security and reduce its food import bill, the new minister of agriculture must address these challenges especially those that fall directly under the agric ministry’s purview.
OLUYINKA ALAWODE & JOSEPHINE OKOJIE