Agric budget: Strategic food reserves to gulp N4.1bn

…some senatorial districts get special allocations The Federal Government has appropriated the sum of N4.1 billion to buy grains for the strategic food reserves. There are 33 silos scattered across the country.  The measure is also expected to shoreup the prices of food commodities. The amount represents 5.4% of the total budget (N76.16 billion) appropriated […]

…some senatorial districts get special allocations

The Federal Government has appropriated the sum of N4.1 billion to buy grains for the strategic food reserves. There are 33 silos scattered across the country. 

The measure is also expected to shoreup the prices of food commodities.

The amount represents 5.4% of the total budget (N76.16 billion) appropriated to the main ministry of which N69.2 billion is for capital expenditure in the 2017 fiscal year.

According to the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, the silos sites have a total capacity of about four million metric tonnes of grains.

This money is expected to fill the 33 silos across the country with rice, maize, beans, sorghum, millet and other grains, which will be released back to the market to cushion the effect of soaring food prices later in the year.

Also in the 2017 agric sector budget is the provision of N4.1 billion to get agricultural mechanisation equipment to farmers through service provider operators (SPOS).

This might be grossly inadequate considering the size of the country and the huge demand for agricultural equipment, which is a major factor that can attract young people to the farm. 

Also the ministry has penciled down N5.1 billion to be spent on maintaining ‘land and climate management’.

The ministry would also spend the sum of N3.38 billion for livelihood intensive family enterprise (LIFE) programmes; a programme that the ministry said will take life back to the villages in order to reduce the number of urban poor.

Similarly, extension services support to farmers, value chain actors, youth and women in agribusiness is expected to gulp N3.01 billion.

On grazing reserves, which have been the subject of heated debate, the key question is: Would N1.86 billion budgeted for National Grazing Reserves development grass up 50,000 hectares of land, with infrastructure such as water (for both animals and people) and schools across the northern belt and even develop new ones?

However, considering the lack of federal government preparedness to tackle pest and disease in the country, it intends to spend N2.1 billion on veterinary and pest control services. 

The budget may evoke row over constituency allocation

Special budgetary allocation to some constituencies for the 2017 fiscal year may generate controversy among stakeholders in the sector.

N150 million is earmarked for Kebbi South Senatorial District only for “supply of fertiliser to rice farmers for productivity boosting measures”, which is different from N1.8 billion for input delivery platform for GES roll-out and management.

 This raises concern over why only “Kebbi South Senatorial District” was chosen to get fertiliser worth such amount while other potential rice growing areas in the geo-political zone were left out. 

Also in the budget is a special appropriation of N500 million for construction of Wukari-Ibi rural road.

This is separate from the N6.46 billion allocated by the ministry to “rural roads and water sanitation.”

Crops with giant allocations

Wheat tops the list of crops that have received the ‘billion naira’ allocation for the 2017 fiscal year, with N2.61 billion assigned for the promotion and development of its value chain, which is closely followed by N2.01 billion allocated for the promotion and development of rice value chain.

Cocoa was assigned N1.88 billion for the promotion and development of its value chain; N1.81 billion for the promotion and development of cassava value chain and N1.62 billion for the promotion and development of cotton value chain.

Other crops that have made the list include cashew with N1.26 billion earmarked for promotion and development of its value chain and N1.1 billion for the promotion and development of sorghum/millet value chain.

Likewise, the Federal Ministry of Agriculture and Food Security (FMARD) assigned N1.55 billion for the promotion and development of fisheries and aquaculture value chain, while promotion and development of nutrition value chain got N1.87 billion.

Similarly, N1.1 billion was set aside for the National Agribusiness Incubation Programme (NAIP) and N1 billion for the procurement of agricultural equipment and inputs for 36 states.