The Positive Impact of ATA on food reserve in Nigeria- highlight by Dr. Jide Olumeko, Director, Food and Strategic Reserve Department (FSRD), Ministry of Agriculture & Rural Development.

The Food and Strategic Grains Reserves Department of the National Agricultural Storage Programme which was launched by the Federal government in 1987 to reduce post-harvest losses and also provide the first line of food relief to affected people in time of natural or man-made disaster for prices stabilization at any given time..

The objectives of the National Food Storage Programme are among other things to:

1.    Ensure availability, stability and access to food at all times and at affordable prices to all for a healthy life and security of the nation.

2.    Ensure immediate food relief in time of emergencies arising from natural calamities such as drought, flood, crop disease, pest infestation and man-made disaster.

3.    Ensure adequate supply of food to the current and future needs through efficient delivery system which makes for self-sufficiency in basic food.

4.    Provide appropriate mechanism, the Guarantee Minimum Price Scheme to make farmers earn remunerative prices for the produce.

5.    Create conducive environment through policies which make for price mechanism in food trade to stimulate increased production while ensuring in food prices.

Currently, the Department have twelve (12) completed and functional silo complexes located at Minna (Niger State), Gombe (Gombe State), Akure (Ondo State), Ogoja (Cross River State), Irrua (Edo State), Makurdi (Benue State), Jahun (Jigawa State), Ilorin (Kwara State), Lafiagi (Kwara State), Jos (Plateau State), Kaduna (Kaduna State) and Ibadan (Oyo State) offering a combined storage capacity of 261,000 metric tonnes.  Warehouses of 2,000MT each are attached to the silo complexes. 

 With the current effort of the Ministry at increasing Agricultural Production through Agricultural Transformation Agenda (ATA) and the Growth Enhancement Scheme (GES), Twenty (20) silo complexes are presently been constructed across the country with a combined capacity of 1,025,000mt on completion.  Four of these silo complexes with a combined capacity of 175, 000MT are ready for commissioning in August-September 2013, while the rest will be completed and ready for operation before the end of this year (Annex).  In the bid to meet its primary responsibilities, the Department has procured assorted grains at various times.  

The Department has also intervened on various occasions during times of food shortage and distress both locally and internationally.  Presently, the department is supplying the 3 states under emergency (Borno, Yobe and Adamawa) with 19,500MT of assorted food grains.

Positive impact of ATA

The Agricultural Transformation Agenda (ATA) encouraged formers to increase their scale of production through the use of high yielding varieties and good agricultural practises with less attention to the issue of Marketing.  Farmers therefore require appropriate support in pricing of their produce.  Hence, the proposed warehouse Receipts Systems for Storage and Marketing of Agric Produce.

ATA has increased food production in the country and about 21 million metric tons of food has been added to the domestic food basket by 2014.  The combined silos complex in the country is about 1.3 million metric tons.  At the current GMP rate, about N90 billion is required by the Ministry to stock the silo complexes and also run a viable storage programme.  In view of this huge cost, the Ministry proposes to concession 33 silo complexes to the private sector in line with the extant regulations and in conjunction with infrastructure Concession Regulatory Commission (ICRC).

Concession will free the Government from heavy financial burden, bring private sector funds into the operation thereby resulting to optimal uses of the Silo facilities to creating wealth for the operators, generate employment, and stimulate production.

The World Bank is funding the concession of the Silo Complexes through Infrastructure Concession Regulatory Commission (ICRC) and Federal Ministry of Finance.  The Lion’s Head Consortium has been appointed the Transaction Advisers (TA) through a very transparent procurement process.  The TA is to develop a Full Business Case (FBC) and drive the process to a financial close which will culminate in the appointment of concessionaire, which will be supervised by the Infrastructure Concession Regulatory Commission (ICRC).

In June, 2013 the African Holding Exchange (AFEX) took advantage of the Agricultural Transformation Agenda (ATA) and proposed operating a pilot warehouse receipt system (WRS).  The proposal was reviewed by the Food Strategic Reserve Department (FSRD) and adopted.  This development culminated in the signing of a Memorandum of Understanding between AFEX and the Ministry.

Warehouse receipt system is an important and effective tool for creating liquidity and easing access to credit.  The lack of access to credit is a severe constraint to the farmers.  The warehouse receipt system also known as inventory credits and can facilitate credits for inventory or product held in storage. 

 It also offer additional benefit such as smoothing the supply and price in the market, improving grower incomes and reducing food losses, mobilizing credits to agriculture by creating secure collateral for the farmers, processors and trader, and Smoothing market price by facilitating sale throughout the year rather than just after harvest.

 The warehouses listed below were leased to AFEX

            a)  Dawanu market, Kano State

            b)  Saminaka, Kaduna State

            c)  Zaria, Kaduna State

            d)  Maikafi, Kaduna State

            e)  Talata-Mafara, Zamfara

            f)  Argungu, Kebbi State

           

SILO LOCATIONS AND THEIR CAPACITIES

S/NO	SILO LOCATION	CAPACITY	STATUS
1.	Jahun, Niger State	25,000	Operational
2.	Minna, Niger State	25,000	Operational
3.	Ogoja, Cross River State	25,000	Operational but requires equipment
4.	Makurdi, Benue State	25,000	Operational but requires equipment
5.	Ilorin, Kwara State	25,000	Operational but requires equipment
6.	Gombe, Gombe State	25,000	Operational but requires equipment
7.	Kaduna,Kaduna State	25,000	Operational but requires equipment
8.	Ibadan, Oyo State	25,000	Operational but requires equipment
9.	Akure, Ondo State	25,000	Operational
10.	Jos, Plateau State	25,000	Operational
11.	Irrua, Edo State	25,000	Operational
12	Lafiagi,Kwara State	11,000	Operational
13.	Abuja, FCT	100,000	Operational and ready for commissioning
14.	Sokoto, Sokoto State	25,000	Operational and ready for commissioning
15.	Ilesa, Osun State	25,000	Operational and ready for commissioning
16.	Dutsin-ma, Kastina State	25,000	Operational and ready for commissioning
17.	Maiduguri, Borno State	100,000	90% completed
18.	Birnin-Kebbi, Kebbi State	100,000	90% completed
19.	Gusau, Zamfara State	100,000	91% completed
20.	Gayau. Kano State	25,000	92% completed
21.	Yola, Adamawa State	25,000	90% completed
22.	Uyo, Akwa-Ibom State	25,000	90% completed
23.	Bauchi, Bauchi State	25,000	90% completed
24.	Igbariam, Anambra State	25,000	Underconstruction
25.	Lokoja, Kogi State	25,000	Underconstruction
26.	Lafia, Nassarawa State	25,000	Underconstruction
27.	Ikenne, Ogun State	25,000	Underconstruction
28.	Jalingo, Taraba State	25,000	Underconstruction
29.	Okigwe, Imo State	100,000	Underconstruction
30.	Ado-Ekiti, Ekiti State	100,000	Underconstruction
31.	Yenagoa, Bayelsa State	100,000	Underconstruction but requires new design
32	Damaturu, Yobe State	25,000	Underconstruction
33.	Ezillo, Ebonyi State	25,000	Undergoingrehabilitation