| In a recent pronouncement, the Nigerian Central Bank | | | | a flourishing and suitably interlinked agro-allied industry. |
| announced the establishment of a federally-assisted | | | | Nigeria's ambitions for accelerated and inclusive |
| programme specifically aimed at promoting agricultural | | | | economic growth are contingent on achieving a |
| enterprises. The Commercial Agriculture Credit | | | | vibrant agriculture sector that can support extensive |
| Scheme (CACS) is a unique initiative launched as part | | | | down-the-line enterprise development and |
| of Late President UM Yar'Adua's Seven Point Agenda | | | | employment. In fact the UN Conference on Trade |
| for economic revival and accelerated growth. It will | | | | and Development (UNCTAD) expressly recommends |
| provide concessionary funding to small farmers | | | | the adoption of a national investment policy to |
| through credit guarantees and interest draw-back | | | | diversify the economy with strong focus on |
| support. Initial outlay for the scheme stands at a | | | | agro-allied industries. The fact that this sector is |
| respectable $1.4 billion, to be disbursed through | | | | primed to spark off rapid enterprise development in |
| participating commercial banks. The Nigerian | | | | Nigeria is simply undeniable. |
| government is understandably optimistic about the | | | | |
| programme and its potential to increase farmland | | | | Enterprise potential exists in almost all areas of local |
| output, diversify the revenue base and provide vital | | | | farm production. Nigeria currently produces over |
| resources and raw material to the manufacturing | | | | 100,000 metric tonnes of kola nut, which finds use in |
| sector. The idea of agriculture and agro-based | | | | the manufacture of beverages, liquor and |
| industry as a strategy for accelerated economic | | | | confectionaries. Yet, local processing units are rare |
| growth is slowly beginning to take hold. | | | | and exports are largely limited to fresh and dry nuts |
| | | | | with little value addition. Cassava, likewise, has |
| In Western Africa, agriculture accounts for an | | | | emerged as a major cash crop with untapped |
| estimated 40% of combined GDP and employs up to | | | | potential in industrial use and bio-fuel development. |
| 70% of the available working population. Agricultural | | | | With adequate private sector involvement, |
| commodities are the second largest export from the | | | | commercialised agriculture can not only aid |
| region to the European Union, although most goods | | | | industrialisation and employment generation but also |
| are traded without any local value addition. This | | | | breach the productivity gap and reduce food costs. |
| represents a significant failure to produce high-value | | | | |
| products that can enhance profitability in | | | | In terms of broad parameters, policies for effective |
| agro-operations and provide much-needed | | | | development of the agro-allied sector in Nigeria must |
| employment. Exports to newer markets are often | | | | focus on a number of key considerations: |
| held back by concerns over compliance with | | | | |
| international production standards. Further, the | | | | - Ensuring food security by increasing supply and |
| region's high transportation costs inflate the price of | | | | lowering prices with the specific aim of curbing |
| agro-products in local markets and lower export | | | | inflation. |
| competitiveness. The gross outcome of these | | | | - Enhancing credit access to small farmers and |
| conditions is that developing economies in West | | | | agro-based enterprises at low rates of interest. |
| Africa and elsewhere generate only $40 by | | | | - Providing information, support and training for |
| processing one ton of agricultural products against | | | | emerging agro-industries and promoting best |
| $180 in developed countries. | | | | practices. |
| | | | | - Increasing productivity through promotion of |
| Fortunately, this persistently bleak outlook for | | | | high-growth models in food processing enterprises. |
| agriculture across sub-Saharan Africa is gradually | | | | - Prioritising locally available raw materials over |
| beginning to change and Nigeria is poised to take the | | | | extravagant imports. |
| lead in reversing the trend. In the first decade after | | | | - Removing informal barriers to trade and streamlined |
| its independence in 1960, the traditionally agrarian | | | | manufacturing of agricultural products. |
| Nigerian economy contributed 60% of GDP and more | | | | - Promoting greater regulatory cooperation among |
| than a third of total export revenue. The country | | | | West African neighbours to increase regional trade. |
| was the world's top exporter of palm oil and had | | | | - Reducing tariff on goods and services that support |
| commercialised production of several cash crops | | | | the agro-processing sector. |
| including cocoa, cotton, rubber, groundnut and kola | | | | - Enforcing relevant safeguards for agricultural and |
| nut. The situation changed radically when the oil boom | | | | value-added food products to guard against import |
| of the '70s shifted focus away from cropping and | | | | surges. |
| petrochemical exports became the primary national | | | | - Building capacity in the private sector and promoting |
| obsession. Agriculture was marginalised into a | | | | public-private partnership in agro-processing industries. |
| labour-intensive, low-productivity subsistence activity | | | | |
| that eventually plunged large parts of rural Nigeria into | | | | Abuja's intervention in the agro-allied sector must |
| abject poverty. Despite several resuscitation | | | | essentially be aimed at creating the right environment |
| attempts over the decades - including the 1972 | | | | for rapid expansion of locally-owned enterprises. |
| National Accelerated Food Programme, the 1976 | | | | However, there are serious challenges in this direction. |
| Operation Feed the Nation and the Green Revolution | | | | Industrial processing of agricultural products is almost |
| initiative of 1980 – the steady descent of | | | | negligible, existing standards being very basic and |
| agriculture continued till the very end of the last | | | | often incomparable with export requirements. |
| century. | | | | Post-harvest losses are also very high in the region, |
| | | | | averaging up to 50% for fruits and vegetables and |
| The redirection of agricultural policies affected since | | | | 25% for grains. In many instances, losses due to |
| the return of democracy in 1999 proved more | | | | customs delay and complicated documentation |
| successful. Under a radical reforms programme, Abuja | | | | exceed applicable tariffs. Labour saving production |
| targeted rural development with integrated plans for | | | | and advanced harvesting and processing technologies |
| agriculture promotion, rural industrialisation and | | | | are therefore critical for sustained revival of the |
| infrastructure development. This integrated approach | | | | Nigerian agriculture scenario. Moreover, efficient |
| has yielded tangible results: Agriculture now leads the | | | | production and marketing systems will prove vital in |
| country's economic recovery, bouncing back to | | | | ensuring high quality standards and competitive prices |
| contribute 42% of GDP by 2008. | | | | for both domestic industries and export markets. |
| | | | | |
| Perhaps the most significant thought arising out of | | | | In terms of Nigeria's long term growth prospects, |
| this recovery is Nigeria's natural inclination towards | | | | perhaps the most important consideration of all is |
| farming. Traditional involvement with agriculture and | | | | simply the realisation that future prosperity depends |
| the existence of diverse ecological conditions across | | | | not on the yield from its oil fields, but on the harvest |
| the country offers tantalising potential for growth of | | | | of its land. |