‘Nigeria requires agric policy to move forward’

Nigeria is said to be one of the major producers of cashew nuts, but due to poor method of processing, little foreign exchange is earned from the business. Why is it so?Currently, Nigeria produces over 120,000 tons of cashew nuts, and we are a net exporter of raw cashew nuts. Despite that, I do not […]

Nigeria is said to be one of the major producers of cashew nuts, but due to poor method of processing, little foreign exchange is earned from the business. Why is it so?
Currently, Nigeria produces over 120,000 tons of cashew nuts, and we are a net exporter of raw cashew nuts. Despite that, I do not see any cause for celebrating our position as net exporter of raw nuts. More work is required in terms of increasing the volume of cashew production and processing in Nigeria. Cashew is a winner crop; virtually everything in cashew is useful. So, cashew is a big industry waiting to be established.
From cashew you can produce cashew apple juice, cashew kernel, cashew oil, cashew nut shell liquid etc. These are big industries that when established will move our annual earnings from N24 billion to over N2 trillion annually.
What is the way out?
If we do things the wrong way we have always done, we will keep getting same result. To get a better result, we need to do things differently and that starts with policy. Good agricultural policies can solve the problems the sector is facing. We need farmers’ national agricultural policy that enhances productivity, efficiency and prosperity of our agribusinesses; that can create jobs for our people and contribute to our economy. For agriculture to be the economic backbone of Nigeria, our developmental policy must be tied to agriculture.
What are the farmers as stakeholders doing to boost cashew production and export?
Our role as association is more of advocacy and ensuring that the sector grows and contributes towards creating policies that support agriculture. So far so good, we are doing that to the best of our ability even though we have constraint in terms of funding that is required to drive our activities.
In what way is the agricultural transformation agenda of the present administration helping to revolutionise cashew farming, processing, marketing and the agricultural sector?
The Agricultural Transformation Agenda is aimed at adding 20 million metric tons of food to domestic food supply and create 3.5 million jobs by 2015. Under the agenda, so much has been achieved in terms of food production, but a lot more needs to be done.
Do you think shifting dependence from oil to the agricultural sector can help revamp Nigeria’s economy by 2020?
My answer is a resounding yes! But that is only if we have to direct funds into building our agriculture. Developing agriculture cost money and we must be ready to spend in building our agriculture and agricultural infrastructure to a point that we are proudly producing all the food we eat and enough to meet export demand. The problem with agriculture in Nigeria is loss of focus and commitment. We found easy money in crude oil and so we were distracted and gradually our agricultural productivity began to decline to the point that we became a net importer of food.
We need to appreciate the fact that during the era when agriculture was the mainstay of Nigeria’s economy, before and after independence, the country invested heavily in agriculture and gave the sector all it deserves and requires. We invested heavily into producing cotton, groundnut, maize, and spices in the North, cocoa and cashew in the West, and oil palm and rubber in the East and South. This was the time of our nation’s triumph in agricultural productivity. We created wealth through our agriculture because we were serious, focussed, committed, and we deliberately and purposefully financed agriculture, building vast plantations and well coordinated farm settlements. We made enough money to build the cocoa house which was Farmers House, a modest 24 storey building which stood as the first skyscraper in Africa solely from proceeds of sales of raw cocoa beans and other agricultural commodities. That was cocoa money at work, a testimony and proof that there is wealth in agriculture. I believe that our farmers and agribusinesses will do well if given the enabling environment.
It is important at this point to state that Nigerian farmers are not looking for charity. Rather, we need access to long term finance that is appropriately priced at single digit interest rate. What has killed several farmers’ and agribusinesses in Nigeria is that they have difficulty in accessing credit for their business and when they finally access credit; they do so at very high interest rates and cost that cannot support their business. Agriculture is serious business. You take to agribusiness as a career for a lifetime, and need not look at any other thing other than the agribusiness you are engaged in. This is the attitude every agribusiness man/woman should have. Our business is to produce the food that will feed our people and nation and produce raw materials for our industries today and forever. The business of government is to provide enabling environment for the private sector to take charge.
For agribusiness to work, the private sector has to drive it with the robust backing and support from government. If our government wants the agricultural sector to grow and return to its enviable height, then it must, as a government, support the sector. Government cannot go wrong deliberately supporting agriculture. Considering the transformative power of agriculture, when you strengthen the sector you invariably boost food production, reduce spending on food import, eradicate hunger, guarantee food security, reduce unemployment, earn foreign exchange from exports, reduce rural to urban migration and stimulate overall growth of our economy.
Nigeria is said to be spending about N1.7 trillion on importation of food annually, which is about 39percent of the nation’s budget. Is there anything our farmers can do to stop that?
There is no way we can justify this high national food import bill, rather, we should strive hard to produce all the food we need to eat as a nation.
What do you think the government can do to change the situation?
The government needs to act more, take more agric friendly actions. We need a national agricultural policy that enhances the productivity, efficiency and prosperity of our farmers. The National Assembly needs to adopt a specific resolution for the development of Nigeria’s agriculture. The issue of our agriculture needs to be well treated and handled by our National Assembly. I am not trying to pass any blame but rather this is a call for a well targeted action in favour of our agriculture as part of move towards diversifying our nation’s economy. I really would love to see the Senate and the House of Representatives put in their agenda for discussion the Agricultural Transformation Agenda and then pass it into law. This will establish for us a national agricultural roadmap that will be followed and implemented by successive governments. The National Assembly should target issues like the agricultural value chain covering inputs, production, processing and marketing. Review upward the national budget for agriculture and what it must achieve; financing agriculture at single digit interest rate and improving farmer’s access to credit; building capacity of our farmers on the use of improved agricultural techniques and technology; strengthening agricultural research and empowering and supporting youth in agribusiness.