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Nigeria: Food Crisis - Food Imports Gulped $2.9bn in 2007
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Vanguard (Lagos)
12 May 2008
Posted to the web 12 May 2008
Omoh Gabriel
Lagos
NIGERIA spent a total N348 billion ($2.9 billion) in 2007 to import various food items.
Figures obtained by Financial Vanguard from the Ministry of Agriculture and Water Resources showed that the country imported rice to the tune of N32.04 billion ($267 million) which accounts for 36 per cent of rice consumption in the country, while N120 billion ($1 billion) was spent on the importation of sugar.
This accounts for 99 per cent of sugar consumption in the country.
In effect, only 1 per cent of sugar consumed in the country is produced locally. Ninety-nine per cent of wheat used for bread flour in the country was imported.
This costs N123 billion ($1.03 billion) while a total N60 billion ($500 million) was spent to import fish. The implication is that 66 per cent of fish consumed in the country were imported.
Making a presentation to the National Economic Council in Abuja last Tuesday, Minister of Agriculture and Water Resources, Alhaji Abba Sayyadi Ruma, said it was better for the country to spend the huge amount in improving agricultural production in the country than spending it on importation year in year out.
The present ugly situation in the country, he said, would be reversed if government undertook the implementation of public-private partnership initiatives of the ministry, which he listed as:
- Production of rice, wheat, sugarcane and cotton for import substitution
- Tractor service scheme and other agricultural equipment to ensure availability of at least additional 10,000 tractors per annum
- Establishment of Agro-Service Centres for the sale of quality inputs (e.g. fertilizers, seeds, crop chemicals), handle equipment maintenance, other farm supplies, marketing of farm produce.
- Rehabilitation of the degraded irrigation infrastructure under the River Basin and Rural development Authorities to ensure all season farming.
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Agricultural Land Mapping programme:
- Certification of individual farmlands for title deeds to serve as bank collateral, for access to credit and support services (one-third of each state per annum to be concluded over a period of three years for all the states). Central Farmers' Land Registry to be established.
- Comprehensive Soil Testing Programme capability classification to guide fertiliser application and crop suitability estimated fertiliser requirement is expected to rise to 2.5 m metric tonnes/annum for the next four years.
- Management of Problem soils Acids-14m ha, Vertisols - 3.6m ha, Alkaline - 8m ha etc
- Conservation Agriculture Private sector demand-driven extension services (about 8000 professional workers to be trained per annum. Capacity building for private sector extension personnel. Use of partnerships for improved storage and processing through establishment of Agro-Industrial Parks- 1 per geo-political zone.
- Increase storage capacity by completing on-going silo projects (25 no.) and construction of 20 specialised warehouses in the country.
- Promotion of Specialised & Revitalised Co-operatives to render farm support services to small scale farmers (micro-finance, inputs and produce marketing and processing) in every LGA (attract retired security operatives and young school leavers into commercial agriculture).
- Promotion of large scale commercial agriculture of at least 500 -3000 ha, with direct tie to the small scale farmers (targeting about 6,000,000-10,000,000 Ha over a period of 4 years). Intensive Commercial Livestock Development (Small Holder Fattening & 2 Pilot feedlots).
- Livestock Markets Development Intervention (provision of infrastructures in 7 locations for cattle and live birds ) and rehabilitation of 12 abattoirs. Trans boundary pest control (outsourcing aerial spraying). Sanitary Mandate Programme for private veterinarians (promotion of private animal health care delivery); reviewing the commodity marketing policy; guaranteed Minimum Price.
- Reintroduction of Licence Buying Agent.
- Accelerating the establishment of a special intervention fund (Agricultural Development Fund) with a takeoff fund of at least N200 billion over a period of 4 years.
- Utilisation of the Natural Resource Fund Contributions from the private sector endorsed special intervention in the rehabilitation of broken down irrigation infrastructure and PPP in key input service provision.
- Establishment of a guaranteed minimum price system for agricultural commodities under a reviewed commodity board arrangement, support the establishment of specialised agro service co-operatives to actively participate in production, processing and marketing of agricultural products.
- Accelerate the establishment of the Agricultural Development Fund (ADF) with a take-off grant funded by the three tiers of government. And additional funding support from the Natural Resources Fund.
- Provide sufficient fund for implementation of the recommended initiatives and using the ADF as the financial vehicle for these programmes and additional support from Natural Resource Fund to meet the estimated funding level over the next 4 years is a total of N950 billion.
The minister then sought the approval of the council for the commencement of the process for providing legal, administrative and governance framework for implementation of the aforementioned initiative.
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