Chief Audu Ogbeh |
·
FEPSAN, AFAN, international agencies support
removal.
The cry for fertilizer subsidy removal as posited by private
stakeholders from West African countries in the agricultural sector may not be
immediate especially in Nigeria as the Federal Government is determined to
ensure that finance are made available to small scale farmers at a very
appreciable digit number that will ensure food security in less than thirty two
years so as to be able to cope with population explosion predicted by United
Nation, Food and Agricultural Organization (FAO) in the African continent.
Majority of the stakeholders including the farmers’
association are well disposed to government handling off the fertilizer subsidy
to private sector based on the allegation of corruption along the procurement
and distributions that have not allowed the products getting to the
beneficiaries with markets and choices impediments.
Despite this stakeholders’ position, the Federal Government
of Nigeria at the last month ECOWAS fertilizer summit through the Minister of
Agriculture, Chief Audu Ogbeh said that farmers cannot be immediately deserted
on fertilizer subsidy support but pointed that the lean budget for agriculture was
also another great challenge to achieving the required quantity demanded by the
African Heads of states in their resolution.
Stakeholders have described fertilizer subsidy as another conduit
where billions of unaccountable naira are being drained into wrong pockets in
the name of giving fertilizer subsidy to farmers through procurement and
distribution by the Federal and states governments.
The Executive Secretary to Fertilizer Producers and
Suppliers Association of Nigeria (FEPSAN) Alhaji Rabiu Kwa said that while his members out
rightly supported subsidy for agricultural development so as to reduce drudgery in farming, the aspect of
subsidizing fertilizer products was not acceptable because it has limited the
scope of choice and market expansion of the agro inputs to farmers.
FEPSAN boss, Alhaji Kwa pointed that government must subsidize
agriculture through a well supported research work that would enhance increased
yield in a small expanse of land through improved seeds varieties availability
pointed that performance of fertilizer is a function of best agronomics
practice which must be supported with availability of extension workers for
farmers and good infrastructures of energy and road network for produce
evacuation.
“FEPSAN support agricultural subsidy for the development of
the sector but we do not support fertilizer subsidy as this will not allow the
development of the products in terms of market expansion that will give choice
and opportunity cost for end users. Farmers must be given access to varieties
and they must be made to take farming as business by using their money to
purchase what will give them more profits and dividends.
Government should
rather invest on those things that will reduce farming drudgery like research,
extension workers availability, supporting farmers through grants and loan
guarantee at an avoidable digits, functioning infrastructures and guarantee minimum
price among many others. As for us, we support subsidy support to agriculture,
but not to fertilizer as this will deter the development of the sub sector”
said Executive Director.
The President of All farmers’ Association of Nigeria (AFAN)
Architect Mohammed kabiru posited that government should hand off from
fertilizer saying incentive should be given to
companies instead of subsidy adding the past experiences have revealed
it was all about corruption.
Also the West Africa
Director of International fertilizer development Centre (IFDC) Mr. Rabi Good
stressed the need for the rest African countries to toll the path of Ethiopia
and Ivory Coast who had faced out fertilizer subsidy adding government should
not take over the role of private sector in the distribution of these agro
inputs to end users.
Mr. Rabi Good pointed that as the population of Africa is
anticipated to be doubled in the year 2050, there is need for consistency in
agricultural policies in the region stressed also the need for access to
finance fertilizer agro inputs through the commercial banks at a very
appreciable digit rates.
Stakeholders observed and frowned at the low usage of
fertilizer in African at 12kg per hectare after the 2006 African submit that
stipulated usage at 50kg wondering what are the structure that needed to be put
in place for the purpose of achieving this target in African.
In her support to the stakeholders’ position, the International
Fund for Agricultural Development (IFAD) representative Ms Atsuko Toda was
worried at food importation with burden of when shall logistic to attain 50kg
fertilizer usage be achieved in the
continent despite the local resources availability saying that policy
implementation was a critical challenge in Africa.
According to Ms Toda “What are we putting in place to
achieve 50kg per hectare in the next 25 years despite the political will of African
leaders in 2006 which was re-affirmed in 2014? What are to be put in place
about what our heads of states have agreed upon? All these have to be taught
out. Finance is a challenge in Africa. Cost of production in Africa is high. We
have not differentiated agriculture as a business. Our economy must be
encouraged beyond borders trading with each other”
Chief Audu Ogbeh however argued that the present condition
of Nigerian small scale farmers was too pathetic to be left to the fertilizer
open market prices saying their lean
profit cannot enable them access to sufficient purchase that would meet the
stipulated amount at the African
fertilizer submit of 2014.
Already, about 50 billion naira debt inherited by the
President Mohammadu Buhari from last administration are yet to be paid to
fertilizer suppliers coupled fund availability challenges to ensure further
supplies to farmers with no inputs distribution in 2015 till date.
FMARD Minister pointed that the dilapidated infrastructures
in the country have heightened the cost of production through high transport
from production destination to the end
users who are farmers saying that “We have gas that Notori is trying to convert
to fertilizer but where are the facilities to move them. No railway network and
this has made the cost of transportation very high. Removal of subsidy will be
slowly done in Nigeria until we have ensured getting fertilizer at single digit
bank loan to farmers”
The Minister lamented on the high interest rate on
agriculture with commercial banks not readily disposed to lending to the sector
based on the gestation period that may not attract fast interest thereby putting farmers in a very tight corner
of finance to production and processing.
Ecowas fertilizer
submit also emphasized the need to
strengthen and enhance the involvement of West African fertilizer Association as a private entity so as to
ensure standard, monitoring and involvement
in the fertilizer policy before
it would be rolled out by the member states.
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