Applauding Kebbi/Lagos Agric Partnership

The recent signing of MoU between the governments of Kebbi and Lagos States on the rice value chain where the former being the largest producer of rice in the country with comparative advantage will produce paddy rice for the latter being the biggest consumer of rice in the country is indeed a welcome development. According […]

The recent signing of MoU between the governments of Kebbi and Lagos States on the rice value chain where the former being the largest producer of rice in the country with comparative advantage will produce paddy rice for the latter being the biggest consumer of rice in the country is indeed a welcome development.
According to media reports, during the signing of the MoU, Lagos State Governor, Akinwumi Ambode expressed optimism that the pact would go a long way in ensuring food security, creating job opportunities for the people, boost the economy of the two states and increase Nigeria’s Gross Domestic Product (GDP). On his part, the Kebbi State Governor, Mr. Atiku Bagudu described the MoU as an innovative partnership that would lead the way positively for Nigeria as years of policy distortion had demoralized local producers of agricultural products from competing with their foreign counterparts which had in turn affected the economy of Nigeria negatively.
Under the MoU which is the first of its kind amongst States of the Federation, the Lagos State is to establish a modern rice-processing Mill in Kebbi State which being the highest rice-growing area in Nigeria will produce rice paddy to feed the mill.
Other high-rice growing areas in the country include, Abakaliki Basin, Ebonyi State, Adani, Enugu State, Bida Basin, Niger State and the Lake Chad Basin, in Borno State amongst others.
It would be recalled that President Muhammadu Buhari had last year officially flagged off dry season rice and wheat farming in Kebbi state and also launched the N20billion Anchor Borrowers’ Programme (ABP) which the Central Bank of Nigeria has set aside for rice farmers across the country. At the ceremony, the President enthused, “The importance of agriculture to the economy cannot be over emphasized because economic diversification is the only way to prosperity. Go back to the land and develop agriculture because the era of depending on oil is over,” he said.
Also speaking at the event, Governor, Central Bank of Nigeria, Godwin Emefiele said that the Anchor Borrowers’ programme was designed to create economic linkages between farmers and processors, not only to ensure the output of rice and wheat, but also to bridge the gap between production and consumption.
“Over 200,000 rice and wheat farmers will benefit from the scheme ranging from N150,000 to N250,000 to assist in procuring necessary agricultural inputs.
“The programme is an initiative of the CBN aimed at creating an ecosystem to link out-growers (smallholder farmers) to local processors”, he said.
It is regrettable that agriculture which used to be the country’s economic mainstay has been allowed to degenerate. As statistics indicate, it is equally lamentable that in 2010 alone, Nigeria spent 635 Billion Naira on import of wheat, 356 billion naira on importation of rice, an average of N1 Billion Naira per day on rice alone, N217 Billion naira on Sugar and with all the marine resources, rivers, lakes and creeks in the country, Nigeria spends a whopping sum of 97 Billion Naira on fish imports.
By its very nature, the agricultural sector has the capacity for both backward and forward value chains that can sustain wealth creation, employment generation, poverty reduction, rural development and production of feedstock for local industries.
It is significant to note that all the developmental strides recorded by the defunct regional governments became possible because of the quantum funds derived from massive exploitation of natural resources. Nearly all the infrastructural development recorded in the period preceding the discovery of oil including the infrastructure for oil exploration were all financed from revenue derived from Agriculture and the Mining Industry.
The neglect of this important goldmine has led to total dependence on monthly allocation from oil revenue by nearly all the Three Tiers of Government in the country. This is as result of the ineptitude and lethargy of governments at all levels who, bugged by the Dutch Disease have refused to look inwards for alternative revenue sources lying fallow in their backyard.
Given the lean resources at the disposal of states and Local Governments and the looming bankruptcy, the rapid development of natural resources like agriculture, tourism and solid minerals require massive infusion of funds which could only be leveraged through a tripartite partnership between and amongst the three tiers of government on one part and the private sector and host communities on the other.
Natural resources are evenly distributed in Nigeria with regional comparative advantage. It is therefore expedient for states and local governments in the country to exploit their natural resources with a view to reviving regional economies and boosting the Federation Account with additional revenue. This will further reduce the over dependence on oil revenue and strengthen Nigeria’s fiscal federalism. 
Mohammed, a public affairs analyst, wrote this piece from Abuja.