Farmers will tell you GES is the best thing that happened to them – Minister

How would the minister assess the level of success or otherwise of executing the Growth Enhancement Support (GES) scheme so far, particularly on fertilizer distribution to farmers? To fully appreciate the GES you need to know the level of fertilizer corruption that has gone on for decades. Between 1980-2010, a total of N873 billion was spent […]

How would the minister assess the level of success or otherwise of executing the Growth Enhancement Support (GES) scheme so far, particularly on fertilizer distribution to farmers?
 To fully appreciate the GES you need to know the level of fertilizer corruption that has gone on for decades. Between 1980-2010, a total of N873 billion was spent on fertilizer subsidies alone. Of this, no more than 11% of farmers got the subsidized fertilizers. The fertilizers were taken over by political elite, bureaucrats and middle men. Over N776 billion was estimated to have been lost to corruption.
The scale of corruption was massive. The old government procurement system was very corrupt. Sand got supplied as fertilizers and people got paid. Governments were not subsidizing fertilizers, they simply subsidized corruption. Farmers lost dignity. The GES was developed to reach farmers directly with subsidized seeds and fertilizers. The old government procurement system was scrapped.
This government ended a fertilizer corruption of 40 years. Fertilizer companies now sell directly to farmers, instead of supplying government contracts. Now farmers get their fertilizers without any political interference. Farmers get their subsidized seeds and fertilizers through electronic vouchers (electronic wallets) they get on their mobile phones.
Last year the GES reached 1.5 million farmers and impacted on 7.5 million people. The GES for 2013 has achieved stronger results than 2012. As at today, we have reached 3.5 million farmers and impacted on 17 million persons. Farmers across all states of the country received more than 7 million bags of fertilizer and improved seeds.
The GES programme saved the federal government N25 billion last year. Bank lending to seed companies and agro-dealers under the GES programme increased from N3.5 billion in 2012 to over N25 billion so far in 2013. The default rate for loans was zero percent in 2012, an extraordinary performance and achievement. Over 1500 agro-dealers participated in the programme in 2013. These results are more than twice what we achieved in 2012.
Sometime in 2011, the minister said only 11 percent of subsidised fertilizers reached farmers under the previous system. What is the percentage of farmers that subsidised fertilizers have reached so far in 2013?
 Things have changed dramatically for farmers. Let me give you some concrete examples of how impactfull the GES has been. In Adamawa State, 93% of farmers received their subsidized seeds and fertilizers. In Sokoto State, 84% of farmers were reached. In Kogi State, 83% of farmers got their seeds and fertilizers. In Plateau State, 76% of farmers got their seeds and fertilizers. In Kano, 100% of farmers got their seeds and fertilizers. Benue State experienced 70% redemption. In Zamfara and FCT, 100% and 80% of farmers received their fertilizers and seeds via the e-wallet system of GES.
So, you can see that the GES has dramatically improved the access of farmers to subsidized farm inputs. As a farmer said, “now no one can steal our fertilizers anymore”. We have restored dignity to farmers. Other countries such as India, China and Brazil and several African countries have approached Nigeria to learn from its success with the e-wallet system of reaching farmers.
 How much was budgeted for the entire fertilizer subsidy programme for 2013, including logistics?
 Last year we spent about N8 billion on the GES programme. This year we spent N750 million to conduct a detailed national registration of farmers – the first in Nigeria’s history.  We have so far registered about 10 million farmers. We intend to reach more of them next year, if we have the budgeted funds. We spent N500 million on GES technology operations and about N380 million for supply chain management systems. We budgeted N6 billion for interest subsidy programme with the CBN, which allows banks to lend to agro-dealers and seed companies at single digit interest rates. The GES programme is multifaceted and addresses areas where the input value chains should be improved. It creates an identity management system for farmers, builds seed and fertilizer supply chains to villages and farmers, reduces interest on loans to agro-dealers and seed companies and supports a mobile phone electronic voucher system that reaches farmers directly with farm inputs.
  What is the specific amount of money budgeted for subsidising fertilizer this year?
 Already answered above.
 What are the challenges so far identified by the ministry in the new fertilizer subsidy system, and what are the steps being taken to address the challenges?
 We will focus on the three major challenges; we found that quite a large number of farmers do not have mobile phones. Only 33% of farmers have valid mobile phones. So, the reality is that many of our farmers are poor. We will work to improve their access to affordable mobile phones, to allow them to benefit more from this programme.
We also experienced challenges with limited penetration of mobile phone service providers in some areas. We are working on new technologies now that will allow farmers to redeem their e-wallets off-line. We hope to deploy these for the upcoming dry season. GES requires a good transport, logistics and technology infrastructure to work well. We are working with relevant ministries to improve this.
In the long run, private sector should wholly run the last mile of the GES programme, in that wise we intend to introduce last mile technologies that will make it easier for farmers to check their profiles, validate their profiles and do redemptions on site using POS devices that eliminate the need for a physical register on site.
  What is the level of cooperation by the state governments to the ministry as regards the fertilizer subsidy programme?
 Cooperation across states is excellent. Across the country, we have had cooperation from 35 out of the 36 governments plus FCT.
 Our reporters have spoken to many farmers and visited redemption centres. Some of the problems identified are; officials at the centres connive to siphon subsidised fertilizers and sell to farmers other than the registered ones, and then ticking off the names of the registered farmers as if they had redeemed their allocations. Re-selling of redeemed fertilizers by people who are registered as farmers but are most likely not. Connivance with traditional rulers and other people to divert fertilizers from redemption centres and sell same to people who are not registered farmers. Inadequate or non-existent redemption centres. Late arrival and distribution of fertilizers. Many places got inputs long after the period farmers require them. Low level capturing of registered farmers in the database. Farmers who registered came to redemption centres only to be told their names have not been captured in the registers.  
Is the ministry aware of these infractions? And what are the steps being taking to check them?
No system is 100% perfect. We know some people will always try to abuse or corrupt any system. We are checkmating them. But note that no farmer is getting free inputs. Everybody pays and nothing is free. This significantly cuts down the potential to abuse as there is no free good. Systems improve over time with use and with experience gained. We continue to improve the data registration and validation system, as we are using farmers’ biometric information system to deal with identity issues. Farmers and National Assembly members held a public hearing for stakeholders across the country. The verdict was overwhelming: GES is the best policy in agriculture developed by government. Farmers all over will tell you, GES is the best thing to happen to them.