Last week Tuesday, President Muhamadu Buhari unveiled the mega rice pyramids in the Federal Capital Territory, Abuja which was meant to showcase the achievement of his administration to achieve food security in Africa’s most populous nation. The mega rice pyramids were also proof that the various interventions of the Central Bank of Nigeria in the agriculture sector especially through the Anchor Borrowers’ Programme are yielding the desired result. But as laudable as the pyramids would appear, the ordinary man in the street may not have started to enjoy the benefits as the price of the commodity still remains unaffordable. But CBN assures that prices will crash as production levels rise. BAMIDELE FAMOOFO writes.
Selected Food Price Watch for December 2021 published on the website of the National Bureau of Statistics penultimate Friday indicated that the average price of 1kg of “Rice Agric Sold loose” in December 2021 stood at N476.44. This showed an increase of 1.47% when compared to N469.53 in November 2021.
But while higher prices were recorded on a month-on-month basis and year-on-year basis for all selected foods reported, “Broken rice (ofada)” recorded a decline month-on-month by -0.09%.
Generally, food prices have remained on the high side as inflation figures released also last week showed that food inflation increased by 2.19% month-on-month in December and 17.37% year-on-year.
President Buhari, while unveiling the mega rice pyramids in Abuja, gave the assurance that his administration remains committed to achieving food security & economic diversification through home-grown policies targeted at securing food for all Nigerians.
He urged other agricultural commodity associations that are yet to participate in the Anchor Borrowers’ Programme to emulate the Rice Farmers’ Association of Nigeria to key into the administration’s drive for food self-sufficiency.
The President commended the CBN for its recent efforts at resuscitating the Nigerian Commodity Exchange, noting that farmers would be ready for the off-take of their produce, thereby resolving the current logistical challenge of moving their produce from farm to markets.
Godwin Emefiele, Governor of the Central Bank of Nigeria, disclosed that the partnership between the Bank and farmers through ABP has significantly improved productivity per hectare of the smallholder farmer from about 2.4 metric tons per ha in 2015 to about 5 metric tons per ha in 2021.
He argued that an increase in the production of rice will lead to an increase in supply to the market and that price will eventually begin to drop when local demand is effectively met.
Emefiele explained further that over 3.1 million farmers have been financed for the cultivation of crops across 21 agricultural commodities captured under the Anchor Borrowers’ Programme since inception.
“A total of 3,107,890 farmers had been financed for the cultivation of 3,801,397 hectares across 21 commodities through 23 Participating Financial Institutions in the 36 States of the Federation and FCT, from the inception of the programme till date,” Emefiele said.
“The CBN on many occasions has debunked claims suggesting that the Bank’s targeted interventions in the agricultural sector are tilted in favour of a certain section of the country
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He noted that under the 2020 wet season CBN-RIFAN partnership, the bank also financed 221,450 farmers for the cultivation of 221,450 hectares in 32 States.
As part of efforts to boost food production locally, Emefiele disclosed that the CBN targeted a minimum of one million hectares of rice through a partnership with farmers of Rice Farmers Association of Nigeria and prime or private anchors for each planting season in 2021.
While also unveiling aggressive production plans for maize, wheat, soybeans, cassava, sorghum and cassava, he explained that the bank’s backward integration drive with rice millers was also gaining momentum as the CBN intends to finance millers to grow their own paddy during the current wet season.
Speaking during the unveiling of rice pyramids in Abuja, Emefiele disclosed that “CBN in collaboration with the Wheat Farmers’ Association had concluded the first major wet season wheat farming in Plateau State and planted over 100,000 hectares of wheat across 15 States in the 2021 dry season.”
Boniface Chizea, Chief Executive Officer, BIC Consulting, applauded the CBN for the feat achieved so far with ABP especially in rice production.
He disclosed that available verifiable data indicate under ABP that at the end of the year 2021, 4,489,786 farmers cultivated 21 commodities supported by 23 participating financial institutions in 36 states of the Federation and the Federal Capital Territory were involved.
“The national output of rice increased from 5.4 million tons in 2015 to over 9 million in 2021 making Nigeria the largest rice producer in the African continent. And the rice mills grew from 6 in 2015 to over 50 in 2021 underscoring the involvement of the private sector as this feat was wrought,” he said.
He added “To underscore further the extent of progress made under the scheme, the published website of Thailand Rice Exporters Association confirms the fact that the extent of rice exports to Nigeria dropped from a high level of 1,239,810 metric tons in 2014 to a tolerable quantity of 2,160 metric tons in 2021 as progress is sustained. We can now begin to imagine the quantum of expenditure in foreign exchange that has been conserved as well as the multiplier effect in terms of local productivity as well as job creation opportunities. I suppose most patriotic and well-meaning Nigerians will be reassured as we recount this success story that it is not a case of all gloom and doom in the country. There are many such silver linings in the dark economic skies of Nigeria. ”
ABP explained
The ABP scheme was launched in 2015 to boost agricultural production and reverse Nigeria’s negative balance of payments on food.
Farmers captured under this programme include those cultivating cereals (rice, maize, wheat etc.) cotton, roots and tubers, sugarcane, tree crops, legumes, tomato and livestock.
Loans are disbursed to the beneficiary farmers through Deposit Money Banks, Development Finance Institutions and Microfinance Banks, which the programme recognises as Participating Financial Institutions.
Meanwhile, the CBN boss stated that there is a need for more private sector investment in the agricultural value chain, adding that significant improvements in domestic production of staple food items would help in attaining the country’s price stability goals while reducing its dependence on imported food items.
The CBN on many occasions has debunked claims suggesting that the Bank’s targeted interventions in the agricultural sector are tilted in favour of a certain section of the country.
According to the Bank, contrary to views held by some individuals and interest groups, the interventions in the Anchor Borrowers’ Programme were not only about rice production but had expanded to over 21 crops and were evenly spread across the country.
The Challenge
A major challenge confronting the Anchor Borrower’s Programme according to the CBN is the unwillingness of some beneficiary farmers to repay loans given to them by banks and other financial institutions.
The Bank however has urged farmers to repay their loans in order to sustain the Anchor Borrowers’ Programme.
“Loan repayment is the hallmark of every credit cycle and the sustainability of the programme is hinged on farmers’ ability and willingness to repay their loans, and we are constantly engaging with them to enhance their trust in the system,” Emefiele said.
Also noting that power is another major constraint for farmers, the CBN boss reiterated the need to ensure the integration of Nigerian farmers into the Government’s Economic Sustainability Programme aimed at providing five million homes with electricity using solar energy.
While acknowledging the current challenges in attaining food security in Nigeria, he said synergy among stakeholders will surely catalyse the growth process, assuring that the CBN stood ready to offer effective partnership to deliver on this critical national mandate of attaining self-sufficiency in food production.
He also enjoined Nigerian youths to embrace agriculture, adding that “they have the talent, energy, enthusiasm, technological adoption capacity and all the right drive to revolutionise agricultural production in Nigeria.”
