GES: Suppliers demand payment as FG embarks on inputs distribution

Chief Audu Ogbeh

The concluded arrangement of the Federal Government (FG) to finally embark on Growth Enhancement Scheme (GES) inputs’ distribution of improved seeds and fertilizers to farmers for the 2016 dry season farming may have been stalled as suppliers have insisted on the settlement of outstanding bills before they would release any products to agro dealers for onward transfer to the rural areas of need, towards achieving the  government’s effort to increase food production.

 in rice, sorghum, maize, groundnuts, tomato and the rest as stipulated by the National Council for Agriculture meeting held in Kano early this year.

Coming after about three seasons of non- inputs distribution to farmers across the states of the federation, (since the assumption of this administration in year 2015) and being undertaken through the Federal Ministry of Agriculture and Rural Development (FMARD) it is part of effort at stimulating production for commercialization of the sector to food crops production aimed at  checkmating import.

 The GES was an anchor programme under Agricultural Transformation Agenda (ATA), initiated by the last administration under the former Minister of Agriculture, Dr. Akinwumi Adesina towards giving inputs support of 10kg improved seeds and two bags of fertilizers to each farmer, on crops, livestock and fisheries at a subsidized rate through the electronic wallet platform of smart phone offered by Cellulant Nigeria Limited.

By this new development, farmers’ hope on increased food production may have been heightened as registration of farmers’ participation in this dry season cultivation across various crops have already commenced in about five states, but the position of the agro dealer suppliers may seem to hinder this programme as they insisted on the payment of past outstanding bill of N4.2 billion dating back  to 2014, before they could be able to release their input products to farmers for the exercise. 

In a meeting held at Keffi, Nassarawa state, inputs suppliers have vehemently insisted many of its members do not have any stock for distribution, and until the FG respond to their request that they couldn’t  release any of their products even as FMARD has ordered for immediate roll out.

What is not too clear is whether the GES is going to cover all the states in the country going by the available information that only five states would participate in this dry season cultivation in just two crops of the individual state’s comparative advantages with compliance to soil test confirmation before fertilizer application.

 A reliable source informed our correspondent that In this programme the involvement of seed companies especially the big ones is in doubt as emphasis is much on community seed producers who are very  close source to the farmers but many of the other stakeholders are concerned about certification of the seeds by National Agricultural Seeds Council(NASC).

However, the New Agricultural Promotion Policy of 2016-2020 has identified the inability of the last administration ATA to achieve its production targets as Nigeria still imports about $22 billion worth of food annually in wheat, rice, dairy, fish and sundry items like fruits and vegetables, and this is what the administration of President Mohammadu Buhari is out to address with the injection of this rebranded GES.

It was noted in the new policy document that: “ Access to input remains a challenge for achieving optimal productivity of agricultural outcomes. Attempts to address this issue in the previous government administration has resulted in subsidy programme (e.g GES) which have been characterized by late or non- delivery of inputs. Other problems encountered include delivery of sub- standard or counterfeit inputs, and exclusion of rightful beneficiaries. Therefore, the policy objective is to increase productivity by ensuring access to timely, high quality and price competitive inputs that is demand driven”.

 Food Farm News spoke with the National President of the Agro-Dealers, Alhaji Kabiru Fara who disclosed that members of his association have had meetings with the federal government, and they as an association have been ordered by the FG to roll out on Monday November 28, 2016 so as to meet up with the GES program for the dry season, but the association is willing to comply if government meets up with the two weeks payment as promised.

Fara added that it is what the senate has approved and all they are waiting for is for government to make payment, because without payment the association will not rollout, due to the fact that most of their members are already out of stock, and they can’t restock their warehouse for distribution for the dry season farming to the states participating in the dry season farming.

He added that government needs meet up with requirements, as some of its members are keen on payment first. He stressed that with the pressure being mounted, it is believed that government will not default, saying that they are also ready if government is ready to roll out on November28, but they are willing to give government till  December 12, which is the conclusion of the association that no center will be active until after two weeks when payment has been made.

Engr. Noel Keyen, the National Secretary of Organic Fertilizer Supplier, who initiated the idea that government should be given the period of two weeks to meet up with the requirement of the agro-dealer told Food Farm News, it is two week for government to pay, stating that Indorama alone cannot meet up with the supply of the inputs to farmers. The motion was seconded by many of its members who also said that it was a universal decision taken by the association because most of them are out of stock for supply.

Controversy also came up when some other members of the association also told Mr. Buba the head of the GES Program that they were ready to work with the government whether the payment date is met or not.

They stated that their colleagues should learn to do more profitable businesses and not use the nonpayment of the federal government as an excuse to keep upholding the program from running, come the dry season farming. One of those who agreed to work the government irrespective of whether the government pays or not, also disclosed that he had already restocked his warehouse with about 120 million naira worth of inputs ready for the roll out and so he believes that those who are ready have done same too, because the business is a capital intensive business and not a business meant for unserious people  or people who do not have the capacity. 

He further stated that he is happy because those without capacity will not be allowed to do business, but business will be for those who have the product on ground to sell with complete requirements, which also means that states with no suppliers will be added to those who are ready for business.

 He further stressed that government is doing its best to see that the subsidy program works, as they have it easy for the input suppliers to buy at the rate of N5,500 and sell for N8,000, and with the introduction of the e-wallet system by Cellulant it is believed that corruption will be curbed during the program, as the system makes transaction more visible, capturing old and new farmers, updating with the new farmers biometrics, which will not give room for reconciliation in the service network, thereby providing all necessary information’s to the Directorate of State Security (DSS), FMARD through the android platform.