Farmers condemns FG cassava, say money for HQCF was wrongly spent- Pastor Adewumi

Can you introduce yourself sir?

I am Pastor Segun Adewumi, I am a Pastor and also farmer. I am the National President of Nigeria Cassava Growers Association (NCGA).

Can you tell us the Importance of Cassava to a growing economy like ours?

Yes, cassava is that wonderful crop that provides over twenty (20) domestic food types for Nigerians. It is a raw material for Ethanol, Industrial Starch, Cassava Flour, Glucose Syrup and Sweetener. This product is also a raw material to numerous Industrial items with limitless domestic and export market potentials. Cassava can really trigger massive Industrial Revolution in Nigeria economically.

Can you expatiate more on the economic benefit of the produce?

Yes, for example with good planning, Nigeria can indeed produce 200 million Metric Tons (MTs) of cassava in a year. If this is milled into Industrial Starch for example at the ratio of 4MTs of cassava to 1MT of Starch, we shall have 50 million MTs of Starch. Starch is sold in the domestic market at N170, 000 per ton, this is to say we can generate 8.5 trillion Naira from Industrial cassava in a year. Assuming the cost of starch in the international market is N100, 000 per MT. We shall definitely have 5 Trillion in foreign exchange.

Why is this not happening now?

It is because our Agriculture needs to be developed into full mechanization. Farmers in Nigeria harvest between 12-15 MT of cassava from one HA while farmers in other countries even in Africa are able to reap over 40 MT from the same one hectare. This is why our cassava products cannot penetrate the International market because the cost of its production is the highest in the world.

What can be done to make it competitive in the global market?

We need to provide the enabling environment in form of cultivable land in a contiguous form. We actually need 5 million Hectares (Ha) out of the 84 million arable land that Nigeria has for us to produce 200 million MT of cassava in a year. We can develop the land through bush/ land clearing at the ratio of 1 million hectare per year. This will allow the use of mechanized equipments like a plough, harrower, planter and harvester that will enable the cost of production to be drastically reduced and make the price very competitive in any market on the globe.

What is your take on cassava bread?

The immediate past Minister of Agriculture and Rural Development, Dr Akinwumi Adesina (CON), has made the right move which was the creation of Cassava Development Commission that has most of its members drawn from the private sector. This is the only way that will make the Cassava Bread program works. It cannot be done under the bureaucratic ministry system. The ministry has a system that gives no room for personal ingenuity even when an individual has the where-withal to do it because he has to go through the procedure of beaurocracy. 

 Beside, the money meant for the development of cassava bread was not used for the purpose. For example, the extra import duty imposed on wheat was to support the cassava flour program. From what we heard, over 150 billion Naira has been generated from this extra import duty out of which only 10 billion Naira was released to the Federal Ministry of Agriculture and Rural Development (FMARD). 

Now we have glut everywhere in the market of cassava, at the same time there is no cassava flour to add to the white wheat flour. The reason is that cassava flour is sold at N80,000 per ton as against industrial starch that is sold at N170,000 per ton, while Gari at between N150,000 and N200,000. The three items have almost the same cassava root input, so it does not pay a Processor to process the cassava to Cassava Flour. 

The irony of it is that the entire unsold cassava that causes the glut is not enough to constitute 1% of Cassava Flour requirement whereas we are targeting 20% inclusion. What to do is to provide subsidy that will ensure guarantee minimum price for cassava flour as a temporary measure until we can have fully mechanized farms that will provide cheap cassava. 

At the same time, if 100 billion naira is devoted to land clearing from the 150 billion Naira realized from the external import duty, what this implies is that we should have 400,000ha of land cleared. At 40MT per Hectare, then 400,000ha could have produced 16 million MT cassava root or 400,000MT Cassava Flour which can give us 1,100 Cassava Flour inclusion daily.

 What this means is that if the money accruing from the increase in wheat was judiciously spent on the programme, we should by now have had a clear 10% inclusion of cassava flour in bread but rather we have not even achieved 1% inclusion.

What is the Way forward?

Nigerian Cassava Growers Association (NCGA) is preparing a comprehensive proposal for the consideration of the government and it will be published in news media for everybody to see.

How do we finance Agriculture

One thing I know is that the commercial banks in Nigeria have never financed the real Agricultural sector, what the banks used to give are monies for trading in agriculture products especially export of cocoa, cashew etc. For them to finance the production of agricultural produce, there has to be a change in the finance policy whereby agricultural land should be enough collateral with a well arranged off-takers for all crops produced. 

Gladly I heard the Vice President Prof. Yemi Osinbajo said in his campaign that adequate and rewarding market will be provided for agricultural products. For example even though I am the National President of NCGA, I have a ten Hectare Cassava Farm along Akure – Itaogbulu road which is already over matured for competitive market as many  factories have rejected the produce because of its over staying in the soil. Even if they will buy it, the price is less than the cost of harvesting and delivery.

 As earlier said, the irony of the situation is that the entire cassava that we have in the glut situation can not amount to 1% requirement of cassava Flour. We have to be very serious to accomplish the lofty idea of using cassava to substitute 20% white wheat that we import. Moreover the Bank of Agriculture (BOA) that lends money to farmers must change its strategy. 

Their normal practice is to inspect the field after which loan is approved and disbursed. NCGA insisted that money should be disbursed in phases. The first payment is expected to be for land preparation, the second for planting, the third, maintenance and finally harvesting. 

We also insist that farmers should sign agreement not to sell the product from farm except through the bank. Our main aim was to deliver the entire harvest to the off takers who would pay the proceeds to the bank from where the profit of the farmers will be worked out and paid to him but unfortunately, the glut in the market has disorganized the whole process as cassava flour targeted could not get off takers. 

1.      What is your association doing about the glut?

I wrote to the former Honourable Minister of Agriculture, Dr. Akinwumi Adesina earlier this year about the glut and he immediately set up a two man committee to consider the proposal of NCGA to use gari to mop up the excess cassava through the Federal Strategic Grain and Food Reserve. Unfortunately, the entire budget of that department is inadequate for the program, and the alternative market that was proposed was cassava chips. 

The tragedy of cassava chips project is that chips that is sold for N40, 000 per MT will cost N75,000 to produce. It has the same idea of slave mentality reminiscent of the sale of our crude oil to those who will refine it and sell back as refined petroleum to us at their own price. Cassava chips is nothing more than de-watered cassava, it does not conform to the value addition idea of the Federal government of Nigeria. It is like using our resources to boost the economy of China and other destinations of the chips Export of cassava chips is a very bad idea to the Nigeria Economy and agric farmers.

What is the way out

We shall seek the corporation of the Federal Ministry of Agriculture to take a loan of 2.5billion from the banks that will be used to purchase gari from farmers. We expect the Government to provide packaging material and get the silos to preserve the gari. No money will be given out for production but the bank and the Association will purchase gari produced to specification and package it in the form that will guarantee a four years shelf life.

 It is expected that as soon as the new government settle down, solution will be found to the sales of cassava flour a situation that will guarantee market for cassava root. The additional 29,500 HA of cassava cultivated for High Quality Cassava program will begin to be mature in September 2015. This will add again 1^1/2% inclusion of cassava flour to bread. The reality is that even if the entire available excess cassava is mobilized we shall have only 2^1/2% inclusion of cassava flour this year.

2.      If Necessary Arrangements are made What can we get from ethanol?

 

From what I am yet to verify, it is as if the most profitable industrial usage of cassava is Ethanol. I am told that one MT of cassava root will produces 100 litres of ethanol. 

If the analysis is correct, it means 200,000 million MT of cassava target yearly from five years time will give 20 trillion litres, and if  sold at 250 Naira per litre, we know what that means. Assuming it is 100 naira per litre in the international market, 20 trillion litres will give us 200 trillion naira. 

I may not be accurate in my figure but definitely Nigeria will earn several times more than what she previously earned from fossil fuel if resources are devoted to Ethanol.  We need to realize that Malaysia earns over double what Nigeria makes from fossil on the oil palm, the seed of which they took from Nigeria.

3.      Tell us about NCGA

NCGA is the Association of Cassava Farmers formed to promote cultivation, utilization and export of cassava products. It has numerical strength of over 1,250,000 registered individuals both in Nigeria and overseas countries. Recently we have Nigeria Cassava Growers USA branch consisting of individual with financial abilities to own medium and large scale factories. 

 

We have arranged to hold an international conference in Brazil to interact with the cassava experts in cultivation and processing of cassava and to partner with them for technical assistance for the production of various cassavas based utility items in various part of Nigeria.  We are just waiting for the new Federal Government of General Mohammed Buhari to settle down so that we can gainfully employ 5 million Nigeria in cassava program. 

4.       As a Pastor and General Overseer of a large church with many branches how do you combine your church activities with your role as NCGA President?

With humility I say that my involvement in NCGA has brought a lot of changes to Agricultural Commodity Association. I became National President of NCGA in May 2012 about three years ago. 

The assets of the Association at that time were zero with liabilities and debt. Right now the Association is worth over 500 million naira in assets. We also grew from less than ten thousand to over 1,250,000 million members. My idea is that men of God should not only speak but must act as God himself was the first farmer in Eden. 

There are too many pastors who are parasites on the economy of our great Nation, we should come into operation and make a difference. As you can see God has used us to lift this Association and I hope we shall be able to use cassava to replace oil as a major foreign exchange for Nigeria. In the past, Farmers’ Association was known for duping and cheating farmers. The magic wand that God used in NCGA was our insistence that all monetary transaction including registration of farmers should be done directly through the bank. We also insist that loan must go to the farm and not to the farmer.

 Every farm unit is tracked with Global Positioning System (GPS) with the track record displayed in our website. You can access any information about individual farmer from our website. We have extension officers who are mostly University graduates in Agricultural related studies. Farmers are grouped under these extension officers who supervise the entire cultivation process and also ensure sales of the product and settlement of their loan obligation. 

Through this procedure we have accurate records of our unharvest cassava and other reliable data. It is my fervent believe that if religious organizations in Nigeria got involved in Agriculture, Nigeria will be transformed into financial paradise. There are some Religious groups that can finance cultivation of Cassava, Rice and Maize to the magnitude of 100,000ha to support their members. 

Most churches for example have excelled in the provision of educational institutions but unfortunately, children of their members cannot directly benefit from these Schools due to School fees that will be required to make the School standard. This is why Agriculture option will give the churches the opportunity to help their less privilege members. NCGA have designed a programme for both those in Islamic and Christian religions to invest in the sector.  

Our projection is that the two Religious organizations will put over 2 million hectares into cultivation of Cassava, Rice and Maize for their members in the next four years. Over 500,000 Nigeria will be gainfully employed from this project.  

5.      What are your plans for the Small Holder farmers

We are actually thinking of two programs for cassava. While the fully mechanized cassava farmers whose product will come cheap are devoted to industrial usage the small holder farmers will target food security. Our plan is to start with youth and graduate farmers with 10ha each. We shall add five ha yearly to the portion of the successful ones until he has 25ha which will enable him to earn over 5million income in a year. 

Beside we shall form the youth into cooperatives that will own specialized Agricultural equipment and processing factories. Universities, secondary and primary schools especially those in rural areas will be encouraged and assisted to own cassava farms and processing factories. The beauty in cassava program is the limitless market potentials of cassava products for example there will be market if the entire Nigeria is used to cultivate cassava for the production of Ethanol. Nigeria has no business of being poor. We shall use cassava for the next era of prosperity.

6.      How is NCGA partnering with the State Governments?

We have some ongoing projects with some state governments. One of them is the Ethanol project introduced to NCGA by E-Debit “A financial institution based in UK”. The Ethanol plant is to be sited in Oyin, Boluwaduro/Ogbese Ondo state. It requires 6,000ha of cassava farmland. Union Bank PLC is to finance Bush/Land clearing to the tune 1.6 billion and yearly cultivation for 900 million naira. The project is to be replicated in other states that are willing to give the 6,000 HA to the cassava program.While this is ongoing the Agricultural department of Union Bank Head Office is arranging off-takers of cassava Root with functioning Ethanol plants in Ogun state.

We have requested the Ogun state government to make land available for this program.Cost of surveyor, bush/land clearing, demarcation of land to blocks of 10ha each and other Agricultural Land development requirements will be borne by the Association. Other states targeted for this Programme are Ekiti, Osun, Oyo, Edo, Delta, Ebonyi and any other states that show interest in donating a freehold land for the program