Seed supply gap of 231,000mt exposes opportunity in industry

Latest statistics from the Federal Ministry of Agriculture and Rural Development shows Nigeria has a supply-demand gap of 231,000 Metric tonnes(MT) of seeds valued at N81bn while in 2016, the  annual seed demand in Nigeria is about 350,000 MT for rice, maize and sorghum with an approximate seed industry value of N112 billion.

Presently, the demand- supply gap is filled through massive use of low quality seeds, such as farmers’ saved seed and supplies from unscrupulous seed merchants.

To avert this trend, Audu Ogbeh, Minister of Agriculture said the Ministry is working with research institutes on a seed industry revitalisation with greater attention given to agro-ecology suitability for major crops in the country and soil mapping.

Ogbeh, who spoke at the National Workshop on developing rapid action plan for quality seed production in Abuja, said the Ministry would engage further with the financial sector on high-lending rate to ensure that seed industry actors have improved access to credit and finance for the development of the sector.

According to him, the current high interest rates of 26 percent being charged by banks are a disincentive to investment in agro-industry.

To this, he informed that the Ministry would push harder for the introduction of a lower interest regime to the agricultural sector under the special intervention programmes of the Central Bank of Nigeria.

On partnership with the state on improved seedlings Ogbeh said: “It is worth noting that we now have seed preference mapping for the country and we will ensure that each state of the federation is provided with the proffered varieties of seed most appropriate to environment for bumper agricultural production”

Industry watchers are of the view that Nigeria research institutes if well supported could close the supply-demand gap for millers, processors and breweries who demand high quality products that could only be produced using seeds of specific quality with high demands.

Since the demand for high quality seed is growing faster, Ogbeh revealed that the Ministry would upscale its collaborations with agricultural research institutes to get the technologies, infrastructure, institutions and policies right.

He said: “On the Policy front, support for the seed industry development should feature high on the agenda of the government, which aimed at promoting a private sector-led development”

The minister said that, “Federal Government shall empower the entities of government such as regulatory and coordinating agencies, research institutions, Universities and the extension services for technology generation, adaptation, and diffusion at the national, state and local government level.”

We shall follow up speedily the reform of the Bank of Agriculture (BOA) in order to bring it in line with similar institutions in the rest of the World”