Mainstreet Bank commits N10bn to fertiliser distribution

Anthony Nwakaegho/NaijaAgroNet

Mainstreet Bank plc has committed N10 billion to the funding of fertiliser distribution through agro dealers in Nigeria to complement the federal government’s Agricultural Transformation Agenda, NaijaAgroNet reports.

The Managing Director, Mainstreet Bank, Faith Tuedor-Matthews disclosed this to NaijaAgroNet at the 2013 Nigerian Economic Summit (NES) held in Abuja recently, revealing the bank’s successful intervention in the procurement and distribution of fertiliser had impacted about one million real farmers in Nigeria.

She said that her institution was developing a project initiative in partnership with willing state governments to support funding of primary production activities in some key crops, following the success achieved through the federal government’s Growth Enhancement Support Scheme (GESS).

The Mainstreet Bank boss acknowledged that GESS had been supportive of small farmers who are the ultimate drivers of food production and agricultural development in Nigeria.

Commenting on the use of seed production chain to boost the success of GESS, she said that there are four critical steps which all stakeholders should embrace, which includes: the need for greater investment in Research and Development (R&D) in the seeds sector, quality control of the seeds to ensure standards, deliberate branding of the seeds to achieve market differentiation as well as investing greater effort on general awareness.

She canvassed that government, seed companies, farmers and the researchers to work together to improve the quality of hybrid seeds available to farmers and  crops such as rice, sorghum, cassava, cotton, soya beans, and Maize should be provided to the small farmers who have major buyers or Agro processors.

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Nigeria targets 10% global fertilizer market by 2017-Alison Madueke

Anthony Nwakaegho/NaijaAgroNet

The development of new fertilizer plants in the country will position Nigeria as the nation targets control of 10 per cent of global fertilizer by 2017, to assist in the drive in all sector of the economy, especially the agricultural sector.

The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke disclosed to NaijaAgroNet while speaking recently at a plenary session of the 19th Nigerian Economic Summit titled, “Building a World Class Petrochemical and Fertilizer Industry in Nigeria.”

 Alison-Madueke said that the need to get the gas sector to drive growth in all sectors of the economy mostly in agricultural sector necessitated the excision of some key areas of the Gas Master Plan from the Petroleum Industry Bill, (PIB) for accelerated implementation under the Gas Revolution Agenda.

The Minister listed some of the proposed fertilizer plants to include the Dangote Petrochemical and Fertilizer Plant to be built at Olokola, Indorama Fertilizer Plant at Eleme, Brass Fertilizer Company at Brass, Nagarjuna Fertilizer Plant at Ogidigben, and another plant by the International Fertilizer Association.
 

Speaking further on the gas policy framework, Alison-Madueke explained that the thrust of the two-pronged policy of gas-to-power and gas-to-industries is to drive linkages between the power and industrial sectors with the agricultural sector serving as a linchpin in the industrial sector on account of its enormous job creation potential and multiplier effect in the economy.

The Managing Director of Gas Aggregator Company of Nigeria, Mr. Kunle Allen, stated that apart from Notore which is already into fertilizer production, six new companies have approached the Gas Aggregator Company to firm up gas supply arrangements for their fertilizer plants and that talks are at an advanced stage with the companies.

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*pix: Alison-Madueke Minister of Petroleum Resources

Biotop Green oils, Energy Ltd partners Unilorin on Jatropha plant

 Anthony Nwakaegho/NaijaAgroNet

The Biotop Green Oils and Energy Limited are partnering the University of Ilorin to explore fully the commercial potential of the Jatropha plant which is set to turn investors into multi-millionaires.

The partnership is coming on the heels of the just concluded third conference organised by the Jatropha Plantation and Development Maintenance Committee of the University of Ilorin with the theme “Breaking down barriers and advancing into new realms of Jatropha – the humble plant.”

NaijaAgroNet gathered that one of the most remarkable uses of Jatropha is the production of the bio-fuel on commercial scale and also in use to powering generators and stoves for cooking.

The Chairman/Chief Executive Officer of Biotop, Olajiga Temitope said the company working hard on the other commercial uses of Jatropha by introducing distributors of bio-fuel in many place and trying to co-opt users of cooking stove as distributors of the product.

Speaking at the occasion, the Chairman of the local organising committee of the international conference and a Professor of animal production at the university Moshood Yinka Belewu said that Jatropha seed cake is relatively cheap and can be mixed with energy sources such as maize to compound livestock feeds.

Belewu explained that the juice from the Jatropha leaves can be used in the treatment and prevention of many ailments, while the stem can be cut and used as a chewing stick to cure bleeding gums and smelling mouth.

He disclosed that the university has produced ceiling boards that are better than Asbestos from Jatropha and is currently working in the lab to produce toothpaste from the plant which is capable of turning prospective investors into multi-millionaires.

A Jatropha farmer in Minna, Niger State, Garba Attahiru, said that selling the Jatropha harvests to the processing company has boosted his income appreciably more than the farmers that engage in the cultivation of other crops.

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AGRF decries acute financial gap in African agriculture

Anthony Nwakaegh/NaijaAgroNet

The African Green Revolution Forum (AGRF) has decried what it described as acute financial gap that exists in the development of Africa’s agriculture.

NaijaAgroNet gathered the Forum, which saw over 200 delegates from across Africa and internationally in attendant, focused on the critical role to be played by public-private- partnerships (PPP) and business models in the development of Africa’s agriculture, noted that

the global gap in finance for agriculture stands at about $450 billion, and is more acute on the continent of Africa than anywhere else.

NaijaAgroNet also gathered that evidence abound that only 10 per cent of African smallholder farmers have access to the financing they need to expand their production and raise their income.

According to the convenor of the AGRF, Irungu Houghton “Throughout the African continent, we are witnessing successful partnerships between the private and public sectors and smallholder farmers. But these partnerships are still too rare. We will only be able to transform Africa’s agriculture, and alleviate food insecurity and poverty, if smallholders have the funds to boost their crop yields and expand their business.”

Also speaking at the Forum, the Chief Executive Officer, National Association of Smallholder Farmers of Malawi, Dyborn Chibonga, said “Some African governments have gone some way towards addressing affordability and accessibility of production inputs, but challenges still persist. Each and every year smallholder farmers are pulled into a downward spiral of taking out high-interest loans in order to buy farming inputs for the following season. Without access to credit, smallholders cannot raise productivity.”

 

The President, Alliance for a Green Revolution in Africa (AGRA), a partner in the AGRF, Jane Karuku, said “2014 is a critical year for agriculture, when African governments will be setting investment targets and plans to develop agriculture over the coming decade. The African Union has recognised this crucial moment and designated 2014 as the Year for Food Security and Agriculture. We are delighted to announce that next year’s AGRF will be co-hosted with the African Union in Addis Ababa in September 2014.”

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Gov Shema urges govt to focus on agriculture

Anthony Nwakaegho/NaijaAgroNet

The Governor of Katsina State, Ibrahim Shema has added his voice to the clarion call by well-meaning Nigerians on federal, state and local governments to make agricultural development their focal point.

Governor Shema made this call while speaking at the opening ceremony of LAKAJA Agricultural Growth Corridor Investment Summit in Abuja, stressing that “the USAID summit was absolutely important because it offers a unique opportunity for citizens to expand their potentials in agricultural development and to have clear access to market.”

Shema explained that agriculture is the way forward not only for northern Nigeria but for the entire country because the nation’s soil is fertile that could grow seeds from the first day of January to the last day in December.

On agricultural development in Katsina State, the Governor said his state was working hard and had revived irrigation schemes, asserting “we have a Shanghai-Katsina Initiative, we are working in Niger Porto-novo where we have a 3.4 billion initiative going on training young farmers on modern ways of farming and we are supporting agriculture to be turned around, mechanised with improved variety of seedlings and other varieties of essential services important to farmers.”

He said that as part of the preparation against the 2013 flood warnings, the state government has cleared the waterways and also put up standby emergency teams who will move in to assist in any ravaged area.

 “Those villages that are very close to major waterways or river tributaries were the ones most affected by last year’s flood, but we are working hard to sensitise the people to make sure that their homes are moved away from the flood prone areas and then we are giving assistance, shelter, health facilities and others,” Shema said.

On his part, the Governor of Niger State, Mu’azu Babangida Aliyu said that his adminstration was committed to supporting initiatives that would transform the state agriculture sector, stressing that Niger State stands as a hub in the corridor because it has greater advantage in landmass, three major hydro-electric power stations and route linkages to the South-West of Nigeria

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World Bank, ADB, IFAD boost agriculture with N200.3bn

Anthony Nwakaegho/NaijaAgroNet

The World Bank, International Fund for Agricultural Development (IFAD) and the African Development Bank (ADB) have approved $1.23 billion, about N200.3bn to boost food production in Nigeria, according to the Federal Minister of Agriculture and Rural Development (FMARD), Dr Akinwumi Adesina.

 

He disclosed this NaijaAgroNet in Abuja, during a press meeting on the activities of the ministry, saying that $900 million was approved by the World Bank, $250 million by ADB and $80 million by IFAD.   

He explained that the international community is rallying round government’s effort, saying that $500 million of $900 million obtained from the World Bank was meant for agriculture, while $400 million would support water and irrigation projects.

‘‘As you know, the World Bank has agreed to invest $900 million behind agricultural transformation in Nigeria, $500 million for agriculture and $400 million for water and irrigation. The International Fund for Agricultural Development (IFAD), their board has approved the release of $80 million to Nigeria to support the agricultural transformation going on in Nigeria. The African Development Bank is considering $250 million in support of the transformation agenda on agriculture,” he said.

He further disclosed that American billionaire and philanthropist, Bill Gates, has agreed to co-opt with the eminent persons group to advise President Goodluck Jonathan on matters concerning agriculture and health in the country.

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Implement Maputo declaration on agriculture - Lawmakers

House Committee on Agriculture and Rural Development has canvassed for implementation of the African Union (AU) Maputo Declaration, which requires 10 per cent of the member country’s annual budget to be voted for the development of agriculture sector.

The Chairman, House Committee on Agriculture and Rural Development at the National Assembly, Alhaji Mohammed Mungono and his Deputy, Alhaji Munir Babba Dan made the House position known to NaijaAgroNet, at a workshop on IAR4D and Innovation Systems Approach for SARD-SC Wheat Value-Chain, in Abuja.

The lawmakers explained that funding of research and development will be ineffective unless there is an established strong partnership with the federal government.

NaijaAgroNet gathered that the legislature has not asserted step of legislation and appropriation of the African Union Maputo Declaration of 10 per cent to agriculture, because of the long history of military adventurism into the nation’s polity and the issue of budgeting between the executive and legislature.

According to Mungono “At this point, there is need to cooperate with the executive to at least give 10 per cent of our national budget to agriculture in tandem with the Maputo Declaration.”

Lamenting the over N635 billion spent on wheat importation annually, he said that although oil is a working asset, there was need to diversify the economy through agriculture to create sustainable development and generate employment.

He said that the Maputo Declaration would have been implemented if the House had the veto power, adding that “As a legislator, one of our major functions is appropriation. We assure you that we are going to do everything possible to give you robust funding not only for wheat, but also other crops and especially for research and development.”

Earlier, Minister of Agriculture and Rural Development, Dr Akinwumi Adesina who was represented by Dr Akinbolawa Osho said the wheat value chain was expected to cover a minimum of 33,000 hectare in each of the wheat producing states, adding that about 7,500 improved seeds would be distributed to the farmers in the selected states in an effort to reduce wheat importation at least by 50 per cent.

The selected states include Borno (Ngala and Kirnowa), Taraba (Gembu, Ngoroje), Adamawa (Dasin Hausa), Bauchi (Badel Jama’are, Misau), Jigawa (Hadejia, Chiyeko, Ringim), Plateau (Tahoss), Kano (Kadawa, Bunkure, Alkamawa and Bagwai), Kebbi (Kebbi), Sokoto (Sokoto),  Zamfara (Talata Mafara), Yobe (Gashua)and Gombe (Balanga & Dadinkowa).

The Africa Union Maputo Declaration on Agriculture and Food Security of 2003 stated that 10 per cent of national budget should be allocated to agricultural development.

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Edo urges NASS to legislate against vegetable oil import

Anthony Nwakaegho/NaijaAgroNet

 

The Edo State government has called on the National Assembly to legislate on law banning the importation of farm produces that has impacted on local production, especially vegetable oil.

 

The Edo State Commissioner for Agriculture and National Resources, Mr Abdul Oroh made the call at his office in Benin City while playing host to the team leaders of the oil palm value chain, Federal Ministry of Agriculture and Rural Development, who were in Benin City for the 2013 special oil palm Growth Enhancement Support (GES) roll-out.

 

Oroh lamented that the unbridled importation of vegetable oil has negatively impacted local production, and canvassed that in adding to banning the importation, high tariffs should be introduced to encourage local production.

 

The commissioner appealed to the Federal Government to allocate 500,000 improved tenera oil palm seedlings to Edo State farmers out of the 4 million raised for distribution to farmers in 24 oil palm producing states.

 

He however noted that it is the wish of the state government that free distributions of the seedlings are made available to the farmers instead of subsidising it.

 

“I want to call on the National Assembly to legislate on law that will prohibit the importation of vegetable oil in the country. Lack of legislation regulating the importation of farm produces, especially that of vegetable oil, has negatively affected local production. I also want to advocate that the Federal Government should give farmers free inputs instead of at the subsidised rate,” he said.

 

He expressed the commitment of the state to producing 25 percent of Nigeria oil palm needs, adding that the 500,000 seedlings would go a long way to help in realising the target of the state.

 

He revealed that plans were at an advance stage for the  state to signing a memorandum of understanding with the investors after  playing  host to some investors  at the first ever agro-business summit held in the state last year.

 

Oroh, commended the minister of agriculture, Adesina Akinwunmi for his leadership role in transforming the nation’s agriculture sector and the organisational structure of Growth Enhancement Support (GES).

 

The leader of the oil palm value chain, Mr Dickson Okolo said the meeting was to finalise arrangement for the distribution of improved farm inputs to 30,000 oil palm farmers under GES.

 

The Minister Of Agriculture, Mr Adesina Akinwunmi Akinwunmi, who was represented by the Permanent Secretary in the ministry, Mrs Ibukun Odusote, stated that the main objectives of the value chain are to increase vegetable oil palm production and achieve import substitution by 2015, the yield and productivity of organised and unorganised plantings.

 

“The oil palm value chain is among the Agricultural Commodity Value Chains being promoted by the Federal Ministry of Agriculture and Rural Development. The ministry of agriculture has in the 2012/2013 fiscal year set up a target of raising 9 million improved tenera oil palm seedlings with potential yield capacity of 21mt ffb/ha and has already done 4 million,” she said.

 

She explained that the seedlings are being raised by public and private nursery operators of the 24 oil palm growing states, while the distribution of the improved seedlings to farmers will commence under the Special Oil Palms GES to plant new areas and expand existing holdings.

 

Odusote also said that a total of 49 public and private nursery operators are involved in the activities, adding that 18 estates benefited from the free nuts issued to them to raise and expand their plantation in order to annually achieve 500-550ha each.

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*Pix: Gov Adams Oshiomole

ATA is govt- enabled private sector agenda to grow agriculture

 

Anthony Nwakaegho/NaijaAgroNet

 

The Agricultural Transformation Agenda (ATA) has been described as the largest ever government-enabled private sector-led effort to grow agriculture in Nigeria.

 

The Acting Director, Communication, Federal Ministry of Agriculture and Rural Development , Greyne Anosike made this remark,  stressing that ATA is a comprehensive effort aim at increasing domestic food production, reduce dependence on food imports and expand value addition to locally produced agricultural products.

 

Anosike noted that through de-regulation, attractive financing, concentrated infrastructure investments, and competitive policies, the sector will be more productive, efficient and competitive.

Findings by NaijaAgroNet revealed that the ATA has the capacity to create 3. 5 million jobs and add 20 million tons to the domestic food supply by 2015.

 

According to the Agriculture Minister Dr Akinwunmi Adesina, “shifting focus towards farming is justifiable and a task that must be accomplished in his time as the nation is facing stiff competition from neighbouring African countries in crude oil sales and the United States of America recent oil discovery, and in neighbouring countries such as Ghana, Angola, among others.”

 

The Agriculture Minister said it has been his dream that attention be shifted from the oil sector to agriculture for it to be driven as a form of business and not just as a mode of life for the old.

 

NaijaAgroNet recalls that since the Agriculture Minister came on board, he had introduced policies that have been favourable to farmers which have changed their orientation of hitherto not being seen as stakeholders in the sector, especially in fertiliser’s distribution.

 

NaijaAgroNet recounts that his laudable achievement is seen in the mode of fertiliser distribution that had destroyed the corrupt middlemen and saving the nation a whooping N25 billion in 2012, while the Growth Enhancement Scheme (GES) allows the farmers key into the e-wallet system, allowing the farmers get seeds in a defined mode and the usage of technology in driving the ATA.

 

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Lend to farmers or face deposit cut, FG warns banks

Anthony Nwakaegho

/DigitalSENSE Business News

 

The Federal Government has threatened to cut her deposits with the commercial banks in the country over its reluctance to grant loans to agricultural, mineral resources and small and medium enterprises sectors of the economy.

 

The President Good Luck Jonathan dropped the hint, when he spoke at the 7^th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Tuesday, and warned that government might be compelled to reduce their access to public sector deposits unless they increase their funding to these critical sectors.

 

President GoodLuck Jonathan who was represented the Minster of State for Finance, Dr. Yerima Ngama   frowned at the performance of the banks in not doing enough to support the real sector despite the policies and other incentives provided to create an enabling environment for them to thrive in the country over the years.

 

He explained that the Central Bank of Nigeria (CBN) has intervened through financial intermediation support initiatives such as Commercial Agricultural Credit Scheme (CACS), and Nigerian Incentive-Based Risk Sharing System for Agricultural Lending,(NIRSAL).

 

The President expressed his desire for the banks to jointly do more in terms of Agricultural lending, adding that it has remained too low to achieve the Agricultural Transformation Agenda’s (ATA) goals of making Nigeria to become a net exporter of food and a hub in job creation in the nation’s economy.

 

"The banks have to come together and see how they can put funds together to really support the farmers. The statistics we have coming from the Central Bank is that when you lend to farmers they pay you. I think we have First Bank’s experience where the percentage of non performing agric loans to performing is less than 1.5 per cent.

 

“So the poor actually pay their loans, but why are the banks always eager to go and lend to riskier businesses than safe agricultural businesses? The issue is with our psyche, we think that maybe they are not high tech or maybe there is too much documentation based on a loan of N50, 000 or N100, 000.”

 

He warned that except the banks show their readiness to support the nation’s economic development objectives the CBN may have to introduce new policy measures that would deny the banks continued access to government deposits

 

The President of CIBN, Mr Segun Aina in his remarks reassured the government of the institute’s readiness to partner government on its various initiatives that is aimed at deepening banking knowledge and improving delivery of top class financial services to the nation’s economy.

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Pix: CBN Governor, Sanusi Lamido Sanusi