Michael Olugbode
4 July 2009
Maiduguri — Worried by depleting oil revenue, Central Bank of Nigeria (CBN), has urged Nigerians to go back and till the land with the mission of re-enacting the glorious era of pre-1970s when the nation's economy mainstay was cash crops.
Speaking during the presentation of the key note address at a seminar: "Harnessing the potentials of Gum Arabic for Economic Development in Nigeria," the Deputy Governor of the CBN, Mr. Tunde Lemo, who was represented by a director at the bank, Mr. Joe Alagieuno, said during the pre and post-independence Nigeria, before crude oil became the country's major foreign earner in the mid- 70's, the agricultural sector performed satisfactorily on all parameters.
He lamented that since the advent of oil, the development and harnessing of the economic potentials of all exportable agricultural commodities began to wane.
Lemo, while explaining that Nigeria needs to brace up in order to maintain her position as the second highest producer of gum arabic coming after Sudan, said apart from its economic value it has the ability to withstand adverse environmental conditions which has made it a potent weapon for fighting desertification and environmental degradation in the Sahelian belt of the country.
He said the gum arabic which is used as thickener, suspender, emulsifier, stabiliser, flavour carrier, binder and encapsulating materials, is very useful in confectionaries, food, beverages, pharmaceuticals and chemical industry with major markets including Belgium, China, USA, U.K and Japan.
The CBN deputy MD, who identified that the primary mandate of the CBN is to promote a sound and sustainable financial system, price and monetary stability, among others, said interventions in the commodity sub-sector is to encourage value addition through increased local processing with a view to ensuring higher returns on investments.
He said at the end of the two-day seminar solution would be proffered to the problems of limited awareness and low investment in gum Arabic. He further said the seminar was aimed at sensitising more potentials investors; promote interaction and partnership among all the relevant stakeholders in the public and private sectors, as well as expose participants to the best practices in gum Arabic value chain.
Also speaking at the opening of the seminar, Alhaji Shettima Yuguda Dibal, the deputy governor of Borno State who represented his boss, Governor Ali Modu Sheriff said the way the world is going, Nigerians may wake up to see that the oil though we still have it might just be worthless.
He asked where are the gum Arabic, cotton, groundnut and other cash crops which built our economy in the past. He said "we need to be a little more serious about these our search for ways around sole dependence on oil. We need action, action, action to grow the economy and get free from the jaws of over dependence on oil."
He added that "it is dangerous to rely on oil when we have other areas we can get resources from. We must go back to the land for resources."
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