Editorial- CBN’s loan Intervention: best agronomic practices also important

We wish to commend the Central Bank of Nigeria (CBN)’s determination to ensure loan intervention to ten economically viable agricultural crops as a means of diversifying the nation’s economy from mono product to agribusiness-based industrialisation, where the entire sub-sector along the value chains of food productivity are effectively engaged and supported, with emphasis on maize, cotton, cassava, rice, tomato, livestock, palm-oil, cocoa and poultry.

What’s more, the policy is being stimulated with denial of granting of foreign exchange (FOREX) at official rate to any food importer to bring in agricultural produce/ products which Nigeria has potential of producing.

Coming on the heels of the success recorded with rice anchor borrower programme, there is no doubt that with effective monitoring and evaluation of these supports, they are bound to succeed. And it is a bold step on the part of this administration toward wealth and job creation but it requires political will and proper execution to succeed.

The concerned authorities should also note that the best agricultural practices must not be left behind so as to ensure high standard of produce and other derivatives along the value chain so as to eliminate poor quality which may result to rejection and, consequently, discouragement of farmers.

Also of importance are insurance cover; extension services to ensure maximum production from cultivation, planting and harvesting, research and transfer and use of improved technologies that have certification of regulatory bodies (for proper checks in case of any need to ask questions in case anything goes wrong).

This brings the issue of imported seeds which have not been properly certified to the fore: this must be checked. The incidence and report of premier bank and NIRSAL getting involved in purchasing of seeds and fertilizer to farmers give us a great concern because it is as if the institutions are taking over the duties of Federal Ministry of Agriculture and Rural Development and also because the organizations involved lack the expertise to do what they are dabbling into.

The angle of rejection of produce also must be taken very seriously to ensure ability to repay the loan for the continuity of the process.