Peasant farmers stare at FG’s N200bn agric fund from afar

It was alleged that the two banks have so far made a profit of about N6 billion since they began warehousing the N100 billion set aside for the intervention funds. The banks have also been reported to have put stringent conditions like demanding for 20 per cent equity contribution from the beneficiaries, a condition Weekly […]

It was alleged that the two banks have so far made a profit of about N6 billion since they began warehousing the N100 billion set aside for the intervention funds. The banks have also been reported to have put stringent conditions like demanding for 20 per cent equity contribution from the beneficiaries, a condition Weekly Trust learnt was against the disbursement criteria.

Governor Gbenga Daniel of Ogun State said the inability of the banks to disburse the funds could not be linked directly to sabotage. “The banks are not sabotaging, they are just doing business. You know that banks will always sit on the money for as long as it is possible for profit-making, so it is left for the supervisory agencies to put them on the run,” he said.

The Federal Government has emphasised on the all-important role of such funds. A statement from the Ministry of Agriculture and Water Resources said the aim of the CACS is to enable farmers to exploit the untapped potentials in the sector, lower the costs of production, generate surplus for export and thereby increase foreign exchange earnings as well as diversify the revenue base of government.

The peasant, rural farmers, however, have their reservations on the success or otherwise of the project. An experienced banker who also engages in commercial agriculture, Alhaji Adamu Hassan, told Weekly Trust that the scheme has some lapses, especially as it affects the real village farmers. He said a critical look at the scheme would tell you who the real beneficiaries are.

“The targets are mainly integrated, large-scale or agro-based enterprises with assets of not more than N350 million, excluding land and with a prospect of growing such assets to N500 million within the next three years. For non-integrated commercial farms/agro-enterprises, they need an asset strength of not less than N200 million, excluding land with a prospect of growing the assets to N350 million in the next three years.”

In the scheme, state governments and the Federal Capital Territory can access the funds to the tune of 20per cent (N40 billion) through specialised agencies or secretariats established for the purpose of onward lending to smaller groups in their various domains. This arrangement, according to Hassan, automatically makes it difficult for the small, village farmer to benefit.

As much as the intervention has received commendations, it has also continued to get some unfavourable remarks. Mr Katung Gwam, an agricultural extension worker, observed that the resources should have been shared, some for direct production like farming, processing, poultry and marketing while some part should be for research and development, agricultural education and infrastructural development in the agricultural sector.

Alhaji Hassan also said that farmers, especially peasant farmers, usually receive unfriendly reception from banks. Hence that relationship would rear its head again even if the farmers eventually have access to the funds. “Most banks are not usually willing to listen to farmers; it has always been the case in time past and it still remains so,” he said.

“This is even the reason that I believe caused the unnecessary delay in the disbursement of that N200 billion by UBA and First Bank. It’s not fair. Farmers are crucial partners in the development of any nation and so are the banks, so they are supposed to see each other as partners in progress. I don’t blame the banks; it is the relegation of the sector by government that made the banks to take a cue from that,” he said.

He, however, said the case is even worse when it involves small-scale farmers. “These small village farmers need to have access to loans and credit facilities to expand their trade.”

A peasant farmer in a suburb of Abuja popularly known as Uke (Zimbabwe), Musa Asso told Weekly Trust that he does not know anything about any funds meant for farmers provided by government.

“Me, I no hear anything like that. Even if e dey, na big, big people go collect am. Before, if there is anything like that, government workers used to come to our village and tell our heads, but now, nothing like that,” he said. He said said he can produce up to 40 bags of maize.  

“Last year, I got 46 bags of maize, 40 bags of groundnuts, 27 bags of millet and other petty crops. If to say government dey help us, food for no cost for market. The big, big people wey government dey help na sell dem dey sell the foodstuff to outside country,” he said. There probably lies another problem facing government’s agriculture scheme: misplacement of priority and targeting the wrong stakeholder in the entire agriculture sector.