Cottage industry: Fed Gov gives 45% grant, advises owners to ensure loan repayment

The Federal Government in her spirited effort to power the micro economics of the country through non oil sector of processing and packaging agricultural produce for both local and export market has initiated a platform whereby the private sector will have a paradigm shift of doing agriculture as business with the use of small cottage processing factories of N10m payable loan within 5yrs at single digit of 8% and grant of 45%.

In a first of its kind stakeholders meeting organized by the Federal Ministry of Agriculture and Rural Development (FMARD) at NACBRAB, Ibadan where various speakers extensively educate cottages owners under the project partners initiated by the organizer that the proper maintenance of the factory with mindset of doing thing rightly to meeting global standard was hammered as it will enhance the economic growth of the nation and create job at the grass roots. 

In his address on the occasion, the Permanent Secretary FMARD, Architect Sunny T. Echono said the cottage crops processing factory programme’s objective is to advance local standard products for global market and to overcome rejection by the other countries saying that “This forum aims at activating the collective efforts in standardization of processed agricultural crops that will break the barriers of trade for the nation to prosper. It should be noted that if quality infrastructure improves across the states there will be better products and winning of more buyers from within and beyond, this will help to generate employment for the teaming unemployed youths” 

 

Architect Echono urged the cottage crops processing factory owners to become visible as a business group that will be well supported with government policy towards ensuring economic boost through meeting global market demand adding that “ it should be noted that cottage crops processing factory as a subset of SME is a vital national economic growth engine contributing to vital economic indicators such as employment generation and gross domestic product with 70 percent of the rural people being active in the formal and informal cottage  crops processing”

He pointed that loan challenges from the commercial banks will be reduced through this means saying “the field survey has shown that growth possibilities are hampered as significantly low numbers of startup who apply directly to the commercial for medium/longer term financing could not benefit due to stringent measures being put in place, and majority of this bottlenecks are being addressed by the cottage crops processing factory programme”

Shedding light on the design of the programme, the Head of the project in the ministry, Engineer Owolabi said the component involved FMARD, Bank of Industry who is the loan provider, developers and the investors who are farmers, groups, individuals and Non Governmental Organizations that have shown interest by paying 10% of the total loan of ten million naira as government is giving 45% as part of friendly policy.

Engineer Owolabi pointed the loan is given at a single digit that will be paid back in five years as attention is being given to rice, palm oil and cassava cottage processing factories where economic activities will be done in a standard way to attract global market as all post harvest will be processed through using of modern machines as government provides infrastructures for the purpose thereby taking agriculture back to its place of bride saying default will be zero tolerant. 

 

He added that a cassava cottage processing factory in this project will include (1) Motorized stainless steel cassava graters (2 in numbers), (2) Cassava Dewatering press with 30 ton hydraulic press to specification. (3) (2nos) stainless steel fryer 250kg/ day 1200mmx 24000x2.5mm with stand. (4)Mechanical shifters with removable wire mesh screens (1 in Nos), (5) Sealing Machine (1nos), (6) Platform weighing scale (1000Kg), (7) Generating set 10KVA Diesel (1nos).

For rice a cottage there will be the following- Paddy milling machine 300kg/hr (1 nos), Paddy rice parboiler (2nos), Pre-cleaner (1 nos), Bag stitching machine (1 nos), Weighing Scale (1 nos), Thermometer ( 1 nos), Probe Moisture meter (1 nos), Milled rice destoner (1 nos), General (1 nos)

Finally for palm oil, there will be a stripper (1 ton/day) with Shp Diesel engine (1 nos), Cooker (1 no), Palm oil vertical Digester with 8HP diesel engine (2 ton/day), Clarifier with steamer (1/2ton/batch (1 no), Dryer/shell fired (1/2ton/batch) (1no), Oil Presser with 30tons hydraulic (1 ton/day).

Speaking on the condition for parting in the process, Engr stated that letter of expression of interest must be presented which will be followed with an acknowledgement and allocation of factory by the FMARD through an agreement signing document adding that other signing document will be completed in the Bank of Industry through confirmation from FMARD.

“ eligibility to particapte in the cottage crops processing packaged factories involves payment of commitment fee of N500,000.00 bank draft, provision of accessible land with tilled whether state/local government or chiefs, description Map/sketch of the site location and production data of the specific crop (s) in the locality” said Engr Owolabi.

He further emphasized that government’ s role is to ensure the success of the programme through policy as the private sector are the ones to drive the industry to a point of finishing their loan repayment to become a full owners and also allow to enjoy the benefit.

1.       RT-LT- Dr. Isa Kolo, NCRI Badeggi, Isaac Eni, PPP&MA Coordinator, SG2 2000 & Food Farm news publisher, Mr. Ayeni Oladehinde at IAR 2015 cropping scheme.

One of the beneficiaries in the oil palm cottage factory, the Chief Executive Officer of Jimak Nigeria Limited, Mr. Akintoye Akeem who spoke with us said the programme was well designed and good stressed the need for more policy like this that will proactively stimulate the nation economy of the non oil sector adding his company will not fail the government in achievement the aim and objectives of the project.

In his paper presentation, Mr. Williams Ezeagu of the Export Promotion Council encourages the cottage owners to ensure standard products saying on this basis more incentive from his organization are bind to be given towards encouraging them to embark on export adding the potential in the non oil sector of agriculture has not been tapped to maximum level as compared to Thailand, India, China and the rest where they made billions of dollar.

Mr. Ezeagu pointed that the organically grown agricultural product is the most acceptable in the world market adding Nigeria with all these potentials has not benefitted enough in the dollar exchange especially in some of the produce which are the best in the world due to processing and packaging gaps this forum is meant to address.

The Bank of Industry official, Mike Oye advised the stakeholders on the need for farmers to embrace capacity building in their businesses pointing that many commercial banks may not feel comfortable giving loan to someone with less capacity of skill. It is believed this project is menat to address all these challenges towards doing agriculture as a business.