Jibrin Abubakar
16 June 2008
The sixty-day ultimatum given to the three fertilizer contractors expired Sunday May 31, 2008 with all the states taking delivery of the product, even as the distribution, which is still on-going , has not witnessed any fundamental change from the past disorderliness.
The government, though, through its efforts at pruning down the 68 fertilizer companies, had selected three companies to meet their obligations so that the product could reach farmers nationwide at the beginning of the planting season.
The three fertilizer firms saddled with the responsibility of the procurement of the product are:Tak Continental, Golden Fertilizer and Federal Superphosphate Fertilizer.
The Chief Olusegun Obasanjo government had spent N30 billion annually amounting to N300 billion without any corresponding result from 1999 to 2006. And between this period, government subsidy of 25 per cent amounted to N15, 907,904,893, 61.
However, as a mark of departure from the past, the Umaru Musa Yar'adua government jerked up fertilizer import from 528,000 metric tons to 650,000 metric tons in order to augment for the crop failures last year. It has also budgeted N65 billion for same.
All these, commentators say are laudable steps to address the teething problems associated with fertilizer procurement and distribution in Nigeria.
However, there seems to be no evidence that the country is getting it right this time again as the ordinary farmers are not any better.
A survey carried out by the Nigerian Civil Society Initiative on Food Security on fertilizer distribution in northern states confirms that most farmers across the northern states could not get the product as they had to fall back on the fertilizer in the open market.
While the average prices of the subsidized product is N1,500, the market price of the unsubsidised fertilizers remains N5,000, which is far and beyond the reach of an ordinary farmer.
Again, it appears that there are no concrete steps taken by the government to stop the menace of smuggling to the bordering countries, colossal wastages, dumping of fertilizer in unusual places, theft, over invoicing, diversion and transit adulteration.
The survey by the organi-sation of some northern states which are considered the hub of farming in the country pictures disturbing scenarios.
Despite the state government subsidy to augment federal government's 25 per cent subsidy, the farmers say the exercise is far from perfect.
It said that there are evidence that Abuja, Katsina, Kaduna, Bauchi, Zamfara are among the states that are yet to get it right.
"Apart from Kwara and Yobe States where the distribution exercises have been hitch - free, the exercises in other States in the North were marred by irregularities. Most farmers across the states monitored in the North could not get the product as they had to fall back on the unsubsidized fertilizer in the market which is pretty expensive," the group said in its preliminary report made available to Daily Trust.
Daily Trust had reported that in Abuja, for instance, 8,100 metric tons were distributed within three days of commencement, but most of the farmers said that they were yet to take delivery of the product. While those who got, received less than the stipulated five bags. A farmer said that he got only one bag which cannot help him much in his farm.
Another farmer said the distributing agents gave the product to marketers who sold it at N3, 000 instead of the official rate of N1, 500. Hence, some of the farmers interviewed accused the distributing agents of diverting the product.
"I waited but got nothing. The agent did not turn up. This is a failure," a farmer said.
In Bauchi State, farmers are worried that although the government has released 35,000 metric tons of fertilizer into the market, the prices of the brands of the commodity have increased by about 124 per cent. At the Muda Lawal and Central markets in Bauchi Metropolis, a bag of Urea goes for N5,500 while the NPK and Superphosphate cost N4,400 and N3,000 per bag respectively. The brands were previously selling for N3,500, N3,000 and N2,000. The state government had previously fixed the price of Urea brand at N1, 800 per bag as against N1,600 sold last year. Farmers in Tafawa Balewa, Toro, Ningi and Bogoro where farming activities have commenced rely on cow dung as an alternative for fertilizer. The rising demand for cow dung has also forced the price upward.
The subsidized fertilizer are sold at different rates. The Urea brand goes for N1,800, NPK N1, 600 and SSP N1, 500. The new prices are 15 per cent higher than last year's.
In Katsina, farmers have accused politicians of conniving with village heads to divert the product. The product was sold for N3, 800 instead of the subsidized rate of N1, 600. Daily Trust gathered that about five farmers share one bag in most centres because of the non-availability of the product, even though the government has approved for distribution 15,000 metric tons. Farmers in Rimi and Bataragarwa, perhaps are the worst hit. For now most of the farmers are in the market trying to buy the normal but expensive fertilizer.
However the good news from Katsina is that the government has set aside huge sum of money for the establishment of fertilizer plants in its three senatorial zones namely: Bakori, Batsari and Maiaduwa. This, it is thought will go a long way to help in easing the tension around fertilizer in the state. It will also help in cutting the prices and thus create job opportunities for the youths.
In Yobe State, report shows that distribution went on properly as there were no visible problems, yet the government purchased additional of 3000 metric tones of assorted fertilizer at the total cost of N298 million. The good news is that the state has commenced production at its fertilizer blending plant. The state has procured 40, 000 metric tons of raw materials for fertilizer worth over N3.5 billion. Yobe State seems to be moving in the right direction.
In Kaduna, farmers pay N1, 500 per bag and in Zamfara State it cost N2,800, even though some of the local farmers we spoke to in Zaria said they have not seen the product, Ditto for Gusau the Zamfara State capital.
It said that in Plateau shortly after the official launching of this year's sale of the commodity at Kassa village near Heipang Airport by Governor David Jonah Jang, the commodity disappeared only to be seen in the open market.
"Fertilizer has become 'gold' in Plateau State as top Government officials, traditional rulers and party loyalists were allocated assorted fertilizer who in turn diverted them to the open market where they are sold above the government controlled price.
"At the venue of the official launching, some traditional rulers were seen trading off the commodity, where a bag was sold to anxious farmers at N5,000. In some local governments in the State, fertilizer is sold between N5,000 and N6,000."
It added that the Plateau State Government and the leadership of the All Farmers Association of Nigeria (ALFAN) are at loggerheads over the method of fertilizer distribution which has so far only benefited absentee farmers and middlemen. ALFAN, we gathered, refused the allocation of 90 bags of NPK (Nitrogen Potassium Calcium), 350 bags of Urea and 35 bags of Superphosphate.
In Kwara State, it was reported that the distribution went well and the government was said to have put in place adequate machineries for its enhancement. It could be recalled that the state government put fifty per cent subsidy while local governments also added 20 per cent to bring down the prices of NPK 201010, NPK 151515 and Urea fertilizer to N1,880.00, N2, 040.00 and N1,880.00. This is apart from the 25 per cent subsidy by the federal government.
While the group which carried out the independent monitoring of the distribution commended the fertilizer firms and the federal government for delivering on their pledge, it however regretted that state governments are yet to get it right as they have failed to augment the effort of the federal government.
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