Dr. Akinwumi Ayodeji Adesina Hon. Minister of Agriculture and Rural Development
HONOURABLE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT, DR AKINWUMI AYODEJI ADESINA’S TALKING POINTS ON THE OCCASION OF THE ADMINISTRATION’S 100 DAYS IN OFFICE.
As part of the Federal Government of Nigeria’s effort to grow agriculture, ensure food security, diversify the economy and generate foreign exchange, the Federal Ministry of Agriculture has embarked on an Agricultural Transportation Programme in line with the Agricultural Transformation agenda of Mr President with focus on the development of agricultural chains.
The Transformation will focus on key aspects of value chains, including:
• Provision and availability of improved inputs (seed and fertilizer)
• Increased productivity and production.
• Establishment of staple crop processing zones.
• Reduction in post –harvest losses.
• Improving linkages with industry with respect to backward integration.
• Access to financial services and markets.
• The Transformation Agenda will target rural communities particularly women, youth and Farmers Associations as well as improving rural institutions and infrastructure.
• To deliver visible impact within the next four years, the emphasis will be made on increasing the production and productivity of six priority crops of rice, cassava, sorghum, cotton, tomato, and maize as well as livestock and agriculture where Nigeria has an inherent competitive advantage and have the ability to create wealth, jobs and drive food security. This is to ensure that the demand supply gap of these commodities is bridged within the next four years in order to attain self sufficiency in their production.
Key areas of the value chain that will be focused on are:
• To ensure the provision of adequate and good quality inputs such as seeds, fertilizers, seed stocks, agro-chemicals, etc
• Production of staple-crop and the development of processing zones.
• Ensure adequate financial services and credit to farmers NIRSAL.
• Promoting marketing outlets.
All investments will be carried out with special focus on youths and women development in Agriculture.
1. INPUTS: SEEDS AND FERTILIZERS.
• Seeds: In order to stimulate a thriving sector, the seed industry will involve import of high quality adapted seeds in the short term to start the transformation. Thereafter, liberalize foundation seeds to private sector and expand seed production capacity from 8,000 metric tons to 1,000,000 metric tons by 2015. To promote the adoption of use of improved seeds by farmers (less than 5% of farmers use improved seeds), there will be nationwide seed promotion campaign, ensure seed quality through enforcement and invest in research and development.
• Fertilizers: Under the agricultural transformation period 2011 to 2015, fertilizer distribution will be private sector led through the voucher system. This is targeted Growth Enhancement Support (GES) to migrate farmers from subsistence farming to commercialization system.
The key benefits of the voucher system are that:
• 94% of actual farmers will receive subsidized fertilizer at 10% cheaper as against 11% under government control;
• Cost less than 50% to administer the system and
• Encourage the development of a strong private sector. It is envisaged that a total of 1,200,000 metric tons of high quality assorted fertilizers will be distributed as subsidized rate to farmers using the voucher system during the agricultural transformation period. It is also expected that by 2015 between 10-12 million farmers will be reached with fertilizers.
Federal Ministry of Agriculture and Rural Development
President Goodluck Jonathan IN THE FIRST 100 DAYS OF THE PRESIDENT GOODLUCK JONATHAN’S ADMINISTRATION
Agriculture and Rural Development Milestones
The key benefits of the voucher system are that:
• 94% of actual farmers will receive subsidized fertilizer at 10% cheaper as against 11% under government control.
• Cost less than 50% to administer the system and encourage the development of a strong private sector. It is envisaged that a total of 1,200,000 metric tons of high quality assorted fertilizers will be distributed as subsidized rate to farmers using the voucher system during the agricultural transformation period. It is alsoexpected that by 2015 between 10-12 million farmers will be reached with fertilizers.
2. PRODUCTION OF STAPLE CROP AND THE DEVELOPMENT PROCESSING ZONES.
• Under the agricultural transformation agenda, production of staple crops and the development of marketing strategy will focus on attracting private sector agribusinesses to set up processing plants in zones of high food production to process commodities into food products. This will be facilitated by government putting in placeappropriate fiscal, investment and infrastructure policies for staple crop processing zones. This will include tax breaks on import of agricultural processing equipment, tax holidays for food processors that locate in these zones and supportive infrastructure, especially complementary investment by the government in roads, logistics, storage facilities and power. These staple crop processing zones will link farmers in clusters to food manufacturing plants.
3. SERVICE : FINANCIAL SERVICES NISRAL
• In order to revolutionize Nigeria’s agriculture and expand bank lending across the agricultural value chain, the Nigerian Incentive Risk Sharing System for Agricultural Lending (NISRAL) will add USD 3 Billion to Nigeria’s agricultural bank lending, boosting it from 1.4% to 7% of total lending. The NISRAL is designed to “de-risk” agricultural financing value chain, build long term capabilities and institutionalize incentives for agricultural lending.
• In order to strengthen the markets, support will be giving for the development of private sector driven marketing corporations to grow the agricultural sector. These corporations must be owned by the agricultural value chains, run as private sector led (but government enabled) institutions and empower farmers andthe value chain actors and generate value. The marketing corporations will coordinate the production and/or export of target commodities. In addition investment into the sector from research and development to infrastructure and processing will be encouraged. Finally, the development of tailored financialservices to grow, the sector will be stimulated.