Friday, 18 March 2016

The Case Of Agriculture As The Only Saviour To Nigeria’s Deing Economy
By
Chigbu, Uchendu Eugene
u.e.chigbu@reading.ac.uk


According to the ‘Economist’, Nigeria displays (truly) the characteristics of a dual economy - a modern sector heavily dependent on oil earnings overlays a traditional agricultural and trading economy. During the colonial era, cash crops were introduced, harbours, railways and roads were developed, and a market for consumer goods began to emerge. At independence in 1960 agriculture accounted for well over half of our Gross Domestic Product (GDP), and was the main source of export earnings and public revenue, with the agricultural marketing boards playing a leading role, but today this leading role in the economy has been taken over by the national oil company, the Nigerian National Petroleum Company (NNPC).

According to the Central Bank of Nigeria’s data (2003), Oil still accounts for our major revenue (gearing towards 80%) and almost 100% of our export earnings. Although Agriculture (particularly forestry, livestock and fishing) is shown to serve as the major activity of the majority of Nigerians; it is clear that we indulge in agriculture purely as personal survival strategies rather than as a calculated effort to warming the engine of our countries economy. This is really where our National economic problem lies.

The gospel of economic salvation cannot be preached without due regard to agricultural development. Agriculture is the major and most certain path to economic growth and sustainability. It encompasses all aspect of human activities - being the art, act, a cultural necessity and science of production of goods through cultivation of land and management of plants and animals which creates an activity web-chain that satisfies social and economic needs. Agriculture is the mainstay of mankind; therefore wise nations all over the globe give it a priority by developing and exploiting this sector for the upkeep of their teeming populations through the earning of revenue for development purposes; as well as employment for the stemming down crimes, corruption and other forms of indiscipline which work against all factors of life, living and most of all economic production. While many nations in the world are working hard and reaping their harvests in this direction, Nigeria happens to belong among the few that have greatly retarded from their past glorious heights in agriculture, down to a near zero scale of agricultural production. Surely, this neglect is because of irresponsible and ill-purposeful leadership.

With an expansive landmass covering 923.771km2, an estimated arable land of about 68 million hectare; abundance of natural forest and rangeland covering 37 million hectares. Varieties of livestock and wide life, an agricultural friendly climate, coastal and marine resources of over 960km shoreline, expansive rivers and lakes covering 120,000 square kilometre and large consumer market as depicted by National population of over 120 million in 1991 (now estimated to be about 200million). Large regional and continental markets, as well as the ever increasing world market exist for the reaping of the potentials that agriculture can offer any economy. Nigeria has great agricultural potentials that will outpace oil and gas on the long run. That not withstanding, the country has had a history of agricultural prowess in the past, so, if it could work then, it surely will work better now, if judiciously and positively articulated. This is only possible if our oil-misdirected governments can start looking inwardly for other sources of revenue other than oil with an honest bid to boost agricultural production.

The importance of Agriculture cannot generally be over-emphasised in Africa or particularly in Nigeria. With poverty having finally taken resident permit in Nigeria in - although we were warned against it by Professor Pat Utomi in 2003, we cannot get out of it today by just relying on oil and gas. We cannot pretend to neglect the importance of Agriculture in the economic forward-wheeling of our nation. World Bank (2003) data show that more than 70% of Nigerians live below poverty line (which is less than a dollar per day), implying that there has been an astronomical growth in the levels of poverty of Nigerians from Independence to today. This is something we all should be ashamed of, yet it is a situation that can be remedied.

Nigeria is blessed with a wide variety of agricultural potentials, ranging from varieties of crops to varieties of animals and plants and natural agricultural-supportive factors like forests, waters, sands and most of all human resources that are being under-used (or not even used as at now). We have it all, yet we lack it all; and that is why we are hungry in the face of plenty to eat. How can our Nation grow well if we cannot cultivate and manufacture our own food? How do we intend to carter for the ever growing Nigeria population if we cannot confidently feed them to face life’s ever trying activities? For instance, it is well known that the level of animal protein consumption per individual in Nigeria is very low - the reason being that not much of attention has been placed in this area. With the increasing awareness of Nigerians on the need to take at least one egg per day (with population projected to be gearing towards 200 million) our animal protein intake per head is grossly low. But how many Nigerians can afford to put an egg (which is truly viewed as a luxury good) on their tables without necessarily opting for ‘garri’ (which truly will be more satisfying to the stomach and is therefore viewed as a core necessity)? Check it this way: an egg will cost an average Nigerian about N20 (about 16% of a $1) to buy; considering that an egg cannot be considered to be a ‘main course’ but just an a ‘value-added’ to the main food, an average Nigerian (who practically lives under N130 or $1 per day) therefore cannot afford an egg every day and must fall back completely to ‘garri’ which provides more succour, taste and flavour (but surely less nutritive value). That our masses therefore cannot afford eggs to eat is part of why we should be ashamed of our oil-bugged economy. Our inability to have good meal is what increased the craze for buying embalmed chicken imported from other parts of the world (thanks to Dr. Dorah Akunyili’s war) for our meals, thereby poisoning our systems and our mentalities. However, while the present government wisely and rationally banned the importation of these chicken corpses, nothing has been truly put in place to practically encourage poultry and other kinds of farming in this country. At times, one wonders if President Olusegun Obasanjo thinks that the more than 3,000,000 eggs/day production output from his Otta farm will serve the entire Nigeria. Efforts to encourage the Nigerian farmer with finance and other agricultural incentives have only given individuals and corporate bodies with political loyalty to the reigning government access to exploiting the ordinary farmers. Such incentives usually get to false-farmers who use the fund for something else other than for agricultural purposes. Since transparency is lacking in the system, real farmers hardly get the incentives but false-farmers do; and at the end of the day the economy loses the impact that such incentives were made to create. This happens because ours is a Nation that ignores such primary issues as agriculture which should be a very serious tool needed to overturn the sufferings of our masses by providing food, shelter, employment, decorum, revenue etc., as well as to propel the general growth and development of the nation to a sustainable level. The truth is that the agricultural sector of this nation is still being given ill-attention. Something needs to be done. It needs to be resuscitated because Agriculture is truly the hen-that-lays-the-golden-egg of any economy.

The present government came with a lot of promises to revitalize the agricultural sector of our economy which had once fed this nation and nations far and wide with her cocoa, groundnut, Palm oil (not crude oil), rubber, hides and skins etc. Almost six years now, one cannot confidently claim that much of these promises are being kept in the Agricultural sector, even in the face of some new ‘wonderful’ policies. The economy of Nigeria for now is more of a literature of controversy than a statistically reliable one. Gross Domestic Products’ (GDP) data usually released by the present government have been superfluous but when interpreted or translated into the livelihood of the ordinary Nigerian, it at best appears to be more of nonsensical economic expression that protects the image of the country in the International scene than a true growth in the economic Nigeria. With GDP growth of 7.1% (2004 estimate) and Agriculture providing 70% of labour force (1999 estimate), economists have been warring over the truism of these estimates and many have even accused the Government of fingering with figures to boost its face. However, whatever the outcome, what is on ground and well-known to all is that Agriculture has not been made a priority in Nigeria by the government and the Nigerian poverty needs urgent attention. The largely subsistence agricultural sector has failed to keep up with rapid population growth thereby forcing our Africa's most populous country (a country once a large net exporter of food) to importation of food. The government has lacked the will of discipline to either implement a social-oriented reform or even the much-talked-about market-oriented reforms urged by the International Monetary Fund (IMF) - such as to modernize the banking system (thanks to the Professor Charles Soludo agenda), to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. To achieve a stable food-economy, Agriculture must be given its rightful place in the National development effort. This is important due to the menace and distraction being caused by our more than 4 trillion cu m and 27 billion bbl gas and oil reserves respectively. Too worrying to our Nation today is even the generally dwindling calls for the immediate revitalization of the agricultural sector. It is like a situation where many pro-agricultural voices are dieing out because of frustrations from the government by not giving enough heed to their calls in the past and present.

Agriculture, as the “engine house” of world economies needs to be overhauled and serviced in order that the tears of the Nigerian masses may dry up. This can only be possible when the government starts investing substantial capital into the sector. Also the Banks, Insurance companies, Co-operatives and Individual, groups and corporate investors should be encouraged to invest in this sector. In fact the Nigerian Banks particularly cannot be allowed to define their over-popularized and over-advertised “universal banking system” without relating it to agriculture. Insurance firms truly have to start picking interest in the area of agriculture to give it some safety and confidence. The farmers have to start having long-standing visions that can excel in growth terms to a sustainable private and public economy. Our legislators need to start thinking pro-actively on ways to enact economic laws that encourage and boost agricultural production, as well as laws that create enabling environment for its sustainability and safe practice. The politics of oil and profligacy and the unwarranted I-know-it-all mentality in governance cannot lead us to economic glory for now. Not turning to Agriculture will imply our continuous dependency on crude oil and unnecessary reliance on importation of goods that could have otherwise been manufactured at Kaduna, Aba, Nnewi, Ibadan, Port Harcourt, Kano and Onitsha and most of our fast-growing new cities.

As a protagonist of agricultural development, this writer believes that Nigeria’s economic development can only be realistic through the total resuscitation of our agricultural sector. This will propel the sector to produce food and fibres to feed our people and the industry at a rate faster than the birth-rate; yet reducing the death rate. The injection of vigour into the agricultural sector will also fasten the creation of self-reliance, self-contentment and self-sufficiency (which will be translated to National sufficiency). Adequate supply of raw materials for industries, increased foreign reserve; and increase in the export of non-oil commodities and improvement in the standard of living of the masses are issues that a revitalised agricultural system can provide. This will encourage the growth of a physically fit and mentally alert population. Succinctly put, the development of the agricultural sector will generally improve the revenue generation of our nation and discourage our over-reliance on oil and gas which has created a ‘Dutch disease’ for the Nigerian economy. The economic independence which the agricultural sector can offer this nation (if developed) will undoubtedly propel us to political and economic independence, which we cannot truly boast of today as a debtor and borrower nation. Rural and urban development, rural and urban employment; and of course the control of urban migration and general development of other sectors of the economy will be the positive chain reactions of an improved Agricultural sector.  All these can only be possible if the Federal government can increase its budgetary allocation to agriculture to a reasonable level in order to aid adequate research in the sector as well as enhance production, education and general management of the sector. This will boost the food and science technology industry, the chemical industry, banking / finance industry, the export business, the agro-franchise and industries; and even enhance the Federal government’s policy on National Poverty Eradication Programme (NAPEP).

Nigeria, a nation believed to be one of the nations that have potentials to be great in the world because of her endowment with natural and human resources cannot unleash her potentialities if the country does not gain self reliance and self sufficiency. Our country will perpetually remain a borrower and debtor nation in the face of the booming globalization exercise. Until Nigeria summons courage to invest and exploit its rich agricultural sector, our country cannot achieve economic and political independence. More importantly, our present economically hazardous environment should be politically repositioned in order to harness the resources that a bountiful Agricultural sector can give birth to. Unless we invoke the spirit of agriculture in our national economy, our country will always remain the biblical ‘Jonah’ whose inability to self-actualize made him think he could keep deaf ears to the words of wisdom. Our government is still suffering from this “Jonah Complex” which has made it unthinkable for it to embrace agriculture as a true solution to our economic death. The government should embrace Agriculture with more confidence because good agricultural policies and implementation still is the only “big fish” that can transport our economy to the path of recovery and boom.

By,
Chigbu, Uchendu Eugene

Agriculture is antidote to Nigerias  unemployment crisis, Aderohunmu

Read more at: http://www.vanguardngr.com/2010/07/agriculture-is-antidote-to-nigeria%E2%80%99s-unemployment-crisis-aderohunmu/


The parlous state of Nigeria's economy is a reflection of the agricultural sector, according to Dr. Michael Aderohunmu, managing director of Dudu Investment and Business Research Centre Limited. Farm land He therefore wants government attention to be focused on agriculture and infrastructure to fast track the country’s  social economic development, in this interview with  Akoma Chinweoke The agricultural sector which used to be the mainstay of the nations economy has been adversely affected since the discovery of oil. How do you think the sector could be revived to check the escalating unemployment problem in the country? The are two major areas that we should look at. One is commitment . It is the commitment of the Malaysian government to grow their economy locally based on their strength and one of  their strength is agriculture. So, what Malaysia has been able to achieve was to do a kind of elevation to its agricultural processing by adding value. In those days, produce like rubber and palm kernel that left Nigeria for Malaysia cannot be  referred to as they used to be because they have been able to apply technology based on their commitment to develop agriculture. So, they were able to add value through the supply chain. What I mean by adding value is that , you take a product like cassava or palm kernel for instance from farming to export, there are lots of value that have been added there in terms of production, transportation, processing and exporting. We have a lot of specialists that are working there. Each one of them is a cluster that can be developed for new business and contribute enormously to employment and  income generation. These were commitments from Malaysian government to see that the small scale industries working around the manufacturing sector add value to the produce such that even the farmers generate a lot of income from that and then that becomes part of its national strategy for agricultural development . So, what is important now for Nigeria is to focus on our strength by getting the banking sector to support the whole sector of the economy. The mainstay for Nigeria’s economy as it is now is agriculture though it is yet to be . So, there must be government commitment in that sector. There must be government pronouncement and national strategy on agricultural development, on how to develop the sector to create employment for the young ones, create new business and entrepreneurial skills with specialists to see that there is value addition. These are the areas that need to be addressed.  Again in the area of infrastructure, we need to look into the issues like roads, access to farm, since to bring the produce from the farmland to the factory, you need good road. So, infrastructure cuts across every sector of the economy. I don’t want to dwell too much on that because  everybody knows. I want to dwell on what can create employment in our country. We need to bring some innovative approach into that. The high rate of unemployment has forced youths in the country into kidnaping and other crimes as a means of earning a living. What could be done to make agriculture an attractive venture  for our youths? I just came from a World Bank summit where I participated in global innovation policy in Washington. Nigeria was represented by three of us  and people from various parts of the world were there  in the World Bank headquarters to focus on innovations in various aspects which include the policies, quality and the economy, among others. In our case, we need to reformulate ideas on how to make sure that our youths are well employed and one area that I focused on was agriculture. Agriculture offers so many solutions to unemployment and isolation of young ones that are engaged in non-productive activities. Bringing innovation into agriculture means working along with specialists in terms of research and development, formulating a policies that would give us new access to information, marketing, production and then create an avenue whereby these young ones can be employed by exposing them to training , access to skill development that are related to farming, Also, we need to work with specialized organizations and all stakeholders to see that something is really done in terms of moving the economy forward. Today, agriculture employ almost 65-70 percent of our population and that is where we should focus on. I believe that there should be a strategy to develop agriculture in every state and local government so that we can create alternative revenue to oil industries  and employ people. Malaysia developed agriculture before they went into other sectors . Palm oil  has become third or fourth revenue earner for the country while electronics is its number one revenue earner.  They were able to jump from agriculture to electronics because they were able to create a kind of education background based on agriculture that gives is entrepreneurial skill and development locally and then from their graduate to hi-tech . Malaysia is the fastest ITC growing country in the  world today but their basic social economic development was based on agriculture. Even in the western world, before there was industrial revolution, there was agricultural revolution. So, we really need to pay serious attention to that sector as we have so much vast land that can be developed for agriculture. One of the things that we discussed in the World Bank seminar was how to bring innovation into agricultural development to formulate new access to market both local and international through improvement of production and services in the sector. If every state does that, things would be different and there are people here that would offer their quota to see that Nigeria is well  recognized globally in terms of agriculture. We have a template to make every local , state, and the country prosper in agriculture. Government should focus on developing agriculture; we have capable Nigerians that can make this happen to move Nigeria forward. The country has over the years continued to experience delay in budget passage and poor implementation if eventually passed as a large portion is spent on paying salaries of government officials. Is that ideal for an economy aspiring to be great? If the country is spending most of the budget and appropriation on salaries and the rest and there is no capital project, there is no way we can generate additional revenue . What we are talking about is that it is time for us to begin to look for an alternative way of creating additional revenue. We can’t be living on rent. This crude oil money which we have focused all our attention on is not even for Nigeria but for international oil producers. Nigeria like we all know earns rent as one of the producers and this rent is not enough to cater for all what we need for the socio-economic development of the country . So there must be a way to create another avenue to generate income, that is,  there must be a kind of budget appropriation for capital projects, particularly in the areas that can support the economy  which are the real sector, agriculture and education. So, when there is delay, of course we have already defeated the purpose because everything goes with time. Again, we need to find out why there is delay and why it is being done repeatedly as it is what the present and past administrations inherited from the military structure by delaying the budget and applying it towards the end because we never had what we can call economic planning . Planning goes with budget. Many have continued to criticize the Federal Government  plan to allocate N6.6 billion to mark the country’s 50th independence anniversary. What is your view on that? For some of us that are so consistent and concerned about development, what do you celebrate? Is it because the level poverty is increasing by the day or that Nigeria’s population of 1960 has increased by how many percentage and yet none of them can be serviced in terms of basic  education, shelter, electricity supply. So, we need to know what we want to celebrate. For some of us that want to appropriate the resources that are available to us to something we can refer to, I will not go for that. I will rather use my money to get good education for the mass population of our children that are growing today, iinvest the money in profitable areas that can enhance the lifestyle and the quality of education of because if you don’t develop your agriculture and education, you are not going to be represented in the global village that we are talking about which means global market and global market means production that you need  to showcase at that global market. This cannot be done without basic foundation. We have been here for fifty years, this is what we have not been able to achieve, October 1, we would be fifty, October 2 we would be 50+1, we would like to see what would be the agenda as tomorrow would come and go.

Read more at: http://www.vanguardngr.com/2010/07/agriculture-is-antidote-to-nigeria%E2%80%99s-unemployment-crisis-aderohunmu/