X-raying problems hindering agribusinesses in Nigeria

The practice of agriculture is fast transiting fully to the private sector and from all indications this seems the best option for the country. But there are still so many problems which call for urgent attention for the governments at various levels, especially the Federal Government to deal with if Nigeria wants to ensure it is fully food-secure as highlighted below:

Access to capital

Though there are now quite a number of low-interest loan schemes, majority of farmers or primary producers and other agro-allied business operators still have difficulty accessing these funds. Highlighting possible solutions, Johnson Chukwu, managing director, Cowry Assets urged stimulation in private agricultural investments in the country through targeted reduction in the cost of funds to operators in such productive sectors. 

Sotonye Anga, agro-commodities dealer and coordinator of the Community of Agricultural Stakeholders of Nigeria (CASON) also stressed the need for the government to do all it takes to ease cost of doing agribusinesses in Nigeria. “By producing enough domestically to feed the teeming population of 170 million, the country can simultaneously solve the problem of unemployment,” Anga stated.

Mechanisation

Another major challenge impacting on Nigeria’s ability to fill up its food basket is low level of mechanisation. The cost of production of farmers and other producers along the value chains are generally higher because of low mechanisation and poor infrastructure –roads and electricity.

Akinwunmi Adesina, former minister of agriculture now president, African Development Bank stated last year, “A farmer with access to a tractor will be able to plant 10 hectares per day, compared to just one hectare per day if the same operation is being done manually with hoes and cutlasses with human labour. Harvesting with cutlasses or sickles is not efficient, and leads to high losses from harvest and post-harvest operations.” This is still the situation with many Nigerian farmers, who still do farming manually.   Adesina also said, “We must aggressively privatise the commercialisation of agricultural machineries in Nigeria.”

Richard Hargrave, managing director, Dizengoff says, “In Nigeria, you got approximately one tractor to 1,030 hectares of arable land, in the United states, they have one tractor to every 36 hectares of arable land.”                                                                                                                                           Hargrave has also advocated privatising of agric equipment hiring services with support from the government where applicable.

Temitope Adewole, young graduate and owner of Simeon Farms says, “The government is trying when it comes to hiring of farm equipment but the procedure it takes before it gets to the farmer is tiring. If government could give out the equipment at subsidised rates to young farmers like my association to run an agricultural equipment hiring service, there would be so many advantages.” Adewole then stated that the equipment will get to the farmers on time if run by private hands and would be well managed and maintained.

Irrigation

Part of the mechanisation challenge is that irrigation is not so widespread in the country. Even in many places where irrigation facilities are used such as farms along the River Basins, due to poor or no electricity supply, they have to fuel the facilities with diesel with the attendant high costs. 

Erratic rainfall in recent years caused by climate change has no doubt created more need for massive investments in irrigation. For instance, annual harvests of tomatoes in Nigeria worth about N180 billion survives mainly on rain-fed agriculture. As a result of climate change, every year since about 10 years ago, the prices of tomatoes skyrocket around April to July due to delayed or early rains, and/or flooding.

Baba Usman, financial secretary, Arewa Perishable Foodstuffs Market Association, Mile 12 Market noted that speculations/predictions on supply of tomatoes and some other commodities are due to forecasts on expected rainfall patterns. 

But it is now clear that if the country wants to fully ensure food security, the government must support irrigation schemes and this must be country-wide and not just for a part of the country.

Afioluwa Mogaji, veteran farmer and chief executive, X-ray Farm Consulting said, “If there had also been funding for massive irrigation in the south, then whenever rains are delayed in April which is the case in recent years, farmers in the South would still commence planting and we would not have this scarcity, not only of tomatoes but of other crops such as maize.”

Some industry experts have also urged that the government turn around the operations of the River Basins into a Public Private Partnership (PPP). That way, the investors can get involved in areas that would lead to greater efficiency with the government giving them access to the infrastructure, land and water resources of the river basins.

Roads

The condition of the roads hinder movement of farm produce from getting to consumers on time and in good state. Most of the roads leading to the farming communities or between farms, storage/processing centres and markets are in dismal state especially during the rainy season. As a result, the travel time is often longer than it ought to be and high humidity speeds up spoilage of the fresh produce.

Unclear policy direction

Politics usually have a great impact on agricultural operations in any country. Investors’ confidence was initially shaken prior to the 2015 elections in March and April. In the aftermath of the elections, the fact that the policy direction of the new government has not yet been made clear has also affected investors’ confidence. This has resulted in hesitance on the part of the private sector in making massive investments in the agric sector for fear of policy somersaults that could affect their investments. 

Natural/man-made disasters

Natural disasters such as flooding have been recurrent annually all over the country, though not as intense as that of 2012. Erosion, which is man-induced natural disaster, is also a major problem in several parts of South East Nigeria. Also, the undefined grazing zones have often resorted in crops in some farms in the North Central and Southwest being destroyed by grazing cattle. This has led to many violent clashes between farmers and Fulani herdsmen.

Insurgency in the North-east of Nigeria has also impacted adversely on the country’s agricultural output  as many farmers that fled from terror are yet to get resettled and resume their farming operations.

Way forward

Meanwhile, investors all over the world are earnestly looking to Nigeria as a potentially viable agricultural investment destination. With clear-cut policy direction and  strong political will on the part of the new administration to tackle  all the challenges, the country would not only be able to fill its food basket, feed its teeming population and export food but would address the unemployment situation significantly. 

OLUYINKA ALAWODE