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Simeon Mpamugoh
One of the Sustainable Development Goals (SDGs) of the United Nations (UN) is to eradicate poverty by 2030.
However, since its adoption several years ago, agro-economists had posited that farming remains the universal occupation to take any country out of poverty. Yet, government cannot just give away money to farmers without the Central Bank of Nigeria (CBN) guidelines on holistic approach to tackling the challenges confronting agriculture.
This certainly cannot take place in a void. There is, therefore, the need for government to match words with action through local agricultural production. The Federal Government’s directive to CBN to stop providing foreign exchange (forex) for importation of food into the country is seen by experts as a right step in the right direction.
But government must begin to involve multipurpose cooperative farmers who have the numerical strength to drive local food production for improved agricultural production, and attainment of full food security.
Experts have argued that one way this can be achieved would be to encourage members of multipurpose cooperatives with facility to break the seeming jinx in Nigeria’s agricultural lending and development.
A Chartered Accountant and Chairman, Federation of Ethics and Values Cooperative Multipurpose Union Ltd, an agro firm for farmers and artisans, South West Zone, Adesina, who commented on the recent Federal Government’s ban on forex ban for food importation said, “it is a welcome development. Government should extend the ban to all agricultural products imported into the country, including rice and every other agriculture and poultry products. The ban will encourage our people to go into producing these items. It is something we can do. We have the land; it is just to make available the necessary conducive environment and facility for our people to go into agribusiness for the betterment of the country.”
CBN-NIRSAL instrument
The journey of Federation of Ethics and Values Cooperative Multipurpose Union Ltd., South West Zone, towards this project has been a long, tortuous one in the search for financial assistance from the Federal Government for farmers from the zone. “In 2014, we went for a meeting in Ibadan. Present at the meeting was Sarah Nnadzwa Jubril, Special Adviser to former President Goodluck Jonathan on ethics and moral values. She was part of those behind this fund for farmers,” Onikeku said.
According to Onikeku, “the then government saw that in the foreign exchange reserves, certain proportions were devoted for food importation. So they began to find how to tackle the challenges of high import bill in our economy. They introduced the Nigeria Incentive-based Risk-Sharing System for Agricultural Lending (NIRSAL) in 2010 targeted at de-risking lending to the agricultural sector. And that was when the Federation of Ethics and Values Cooperative Multipurpose Union, South West Zone, began the journey for funding. We met First Bank to open account, with the entire requirements met. We later opened another account with Zenith Bank. Thereafter, we mobilised members from other states of the South West zone to also open account. We went further to open yet another account with Access Bank.”
He sated that Sarah Jubril told members of the cooperative in one of the meetings they had with her that the Federal Government had already set aside the fund for farmers and that it was with CBN, adding that she tasked them to put their systems and structures in place. This, according to him, gave them confidence that in no distant time, the fund would be disbursed to the members in Ekiti, Ondo, Osun, Oyo and Lagos states.
He, however, said, “we didn’t know that after the assurance from her, the journey would still be this long. As we speak, we don’t know whose table the buck stops; whether the Federal Government, First Bank or CBN. We have had a meeting with NIRSAL, CBN appointee for the disbursement of the fund; and the Federal Ministry of Agriculture and Rural Development, and they asked us to go and search for land. We have been to Ijebu Ode for acres of land but the owners wouldn’t release them without money and the amount is not a mean sum. We have a lot of people whose lives will improve through high end farming.
Food security and sustainability
Speaking on food security and sustainability, Onikeku said, “we are spending quite a large chunk of our forex on the importation of food and other agricultural products into Nigeria when we have vast expanse of land, with large population that could go into farming. Why do we have to be importing food when we can grow food and feed ourselves. This is the more reason we want to encourage people to go into agriculture so that we would be able to access the fund made available by government for farmers.”
He further stated that government can create an enabling environment for sustainable agricultural production, which the country will immensely benefit from. As at now, he stressed, the country is still dependent on oil, pointing out that prior to the discovery of oil, Nigeria was living on agriculture. He stated that the country would be better if it goes back to agriculture. According to him, agriculture is still one sure way to diversify the economy for more forex earning.
He stated that, “if we must achieve food security and sustainability, government must stop raising and dashing hopes of individuals. It must come up with a policy of assisting multipurpose cooperative organisations by making funds available. It should go further by assisting to make lands available because all the communities we have approached for land are not offering it to us for free. So, besides making money available for the farming, government should equally make funds available for land acquisition. And as members, we should be mindful of the fact that the money is not a grant but loan that should be repaid.
“It behoves on us to make judicious use of it for our own good and that of the country. And I’m sure if the fund is used for the purpose it is meant, we would be able to ensure food security and boost the economy.”
Structures and systems
Assuring the government of the cooperative members’ readiness to pay back the loans, Onikeku said, “there is no way members of the group can run away with the fund when released to them because it is a cooperative society and they know each other. The system we have put in place ensures that the fund is not going to be released directly from CBN or government into the individuals’ bank accounts. It is going to be given to the union. So, it is the union that would disburse the money, and monitor eventual repayment into government pause.
“We know them, and we have been meeting with each other. There is no way anybody that accesses the fund can run away. And as a chartered accountant, versed in the art of bookkeeping, besides keeping records of the organisation, I will ensure that we will put in place systems and structures that would enable members keep adequate record of their financial transactions, and activities of their businesses to enable them determine at any point in time how the businesses are being run, whether they are profitable or not.
Off takers
Prince Babatunde Raji Bibire, Ogun State-based farmer and member of the group, said, “our population in the South West is estimated at more than 7,000. We are seeking the support of the Federal Government and the elite to help us appeal to CBN to release some funds for us so that our members’ agribusinesses and small and medium enterprises can be improved upon. We are looking for assistance to the tune of N10 billion. We assure that every member would pay back.
“What we really want to establish is Farmers Resettlement Centre (FRC). In each state of the South West, we have some areas we have acquired land for the project but we have not paid. What we plan to do in this centre is that those who want to plant cassava would be in one place while those for fishery would be together in one place. The off takers for these goods have already been contacted, and they have agreed to buy them off from us.”
Furthermore, Bibire assured the government that all members of the cooperative are professionally trained, adding that “we have monitored them and their activities for years and seen what they are producing, and ways they can be helped to produce in large quantity. Some of them are already in the business but need expansion. We assure the government that repayments would not be a problem. This is a union with assets and if the fund is released, it is still the union that would ensure it is repaid into government coffers.”
Value chains
In terms of value chains, those who want to produce cassava would be monitored. And cassava has ranges. There are 419 cassavas, which are used for the production of flour and other goods. We also have cassava used for garri (eba), a staple for domestic consumption. Those who want to produce cassava can also produce corn and vice versa. Corns are used for a lot of things: cornflakes, pap (ogi) in Yoruba, and akamu in Igbo, among others. All these products are made from corn.
Bibire explained that, “we have also contacted those that need them as end products. There are those who are also into fish farming, snail farming, etc. We are also in contact with them. We implore government to assist the South West Zone so that we can reestablish our people in agriculture, skills and professions.”
Also, Prince Aladesanmi Adekunle, a zonal coordinator of the group in Ekiti State, shared the agricultural potential of the state. “Ekiti State is renowned for agriculture. Apart from yam, which is processed into different categories of food, we also have cassava and rice. We’ve been hearing of Igbemo rice. It is a community in Ekiti State that produces Igbemo rice in large quantity.
“People are used to ofada rice, which is fast going away because it is no more being produced. But Igbemo rice is the only local rice we can lay hands on today in the South West. It is our indigenous rice, and tastes nice. It is more nourishing than polished rice. What we need is how to expand and mechanise our process. For instance, a harvester of cassava may not be the person to process it, take it to the selling point before it gets to the consumer.
“So, when we discuss agribusiness, we should at the same time think value chains and that is when it is going to add value. If one is producing and doesn’t have the market outlet to dispose of his produce, and make more money, how is he/she going to continue? So, we need something we can do that is secure and sustainable, which can only be agriculture.
“There is need for government to pay serious attention to agriculture. In Ekiti State, we have fertile lands, but to cultivate it requires modern implements. We need to go into automated farming method, and increase the value chain so that when you produce, you already know the off takers, and that would enhance productivity, and generate employment.”
