Prior to now, agriculture used to be considered as the nerve of every nation’s economy and Nigeria was not an exception. However, what used to be the pivot for growth and development in the past has suddenly been neglected because of oil boom. Godwin Anyebe writes
In 1971, the share of agriculture to GDP stood at 48.23 per cent. By 1977, it had declined to almost 21 per cent. Agricultural exports, as a percentage of total exports, which was 20.7 per cent in 1971, reduced to 5.71 percent in 1977. The discovery of oil in commercial quantity in the late-1950s coupled with the oil-boom resulting from the Arab oil embargo on the USA in 1973, affected the agricultural sector adversely. The economy became heavily dependent on oil. By this time, oil revenue represented almost 90 per cent of foreign exchange earnings and about 85 per cent of total exports. While the boom afforded the government much needed revenue, it also created serious structural problems in the economy.
Relentless campaign for a revival of the sector coupled with recent consistency in policy is bringing about a positive change however. Even the Nigerian Society of Engineers (NSE) recently added its voice to those urging a return to the era where agriculture is taken seriously as the sector has the potential to generate one million jobs in one month. The NSE President, Prof. Isaac Olorunfemi said “Every strong economy in the world derives their power from agriculture before they go into other areas. Agriculture is the door.
He however, observed that “There must be an attraction to encourage the young ones. Unless there is encouragement, agriculture will not get anywhere. Agriculture is a place where you can generate one million jobs in one month.
Economic Confidential finding revealed that, Nigerian farmers who produced 120 per cent of the nations needed food lost over 60 per cent of its perishable agricultural products to poor or non existing processing and storage facilities, thereby leading to a food shortage of 25-30 per cent.
It is also on record that one of the policies of the honourable minister is to reach out to Nigerian farmers through using the local government approach of establishing co operatives and coordinating individuals who have vested interests to push the complete agricultural process in rural communities, to also ensure loan facilities for farmers as well as better transportation of harvested produce.
Catastrophe
Though, crude oil is seen as a blessing by some Nigerians, some others see it as a curse. Nigerians on either side of the divide have passionate reasons for feeling the way they do. To this category of people, they have their reasons which they hold on to tenaciously. The first category of people who think crude oil has been a blessing to the country is obviously people who have benefited from the discovery of this natural resource in the Nigerian soil.
While few continue to feed from this discovery, others are lamenting that government abandoned the agricultural sector, which has the potential to benefit millions.
Reacting to this issue Chief Anthony Idigbe (SAN) said, “The history of oil and gas development in Africa is quite pathetic. Over the years, petroleum production has generated great sense of difficulty. Higher revenues from royalties and oil exports have flowed into government coffers, but have been alleged to line the pockets of public officials and their cronies. “Multi-national oil corporations have also been major beneficiaries. The only losers seem to be the citizens of these countries in particular, members of oil producing communities who have borne the brunt of the discovery and exploitation of oil while missing out on the benefits.
Light at the end of the tunnel
Following the reforms in the agricultural sector led by the Dr Akinwunmi Adesina, analysts believe that the country is set to reclaim its place in the global theatre of agricultural production and business.
Adesina who is the immediate past minister of agriculture said; “agriculture accounts for 75% of the growth of the non-oil sector of the Nigerian economy, and assured that the present administration is creating enabling environment, developing infrastructure, safeguarding investments, reducing official bottlenecks and motivating local and international investors.”
He confidently proclaimed the feasibility of reclaiming the former glory of Nigeria as a net exporter of food from its current net importer position.
It is to be recalled that the 2014 Annual Report of the Ministry of Agriculture and Rural Development had revealed that as result of treating agriculture as a business, over $5.6b letters of intent were signed by over 30 domestic and multinational agribusinesses while a $100m Fund for Agricultural Financing in Nigeria (FAFIN) was launched to provide financing for small to medium investors in agriculture.
The Report further revealed that an agriculture mechanisation program was launched by the Ministry in which a mechanisation fund of N50b was also established. The programme once fully executed will establish 1,200 Agricultural Equipment Hiring Enterprises (AEHE)
It revealed that there had been over $3b in ATA priority value chain production and processing including cassava starch and sweetener, cassava flour, fruit concentrate processing, sorghum, palm.oil and parboiled rice.
Other investment it revealed included over $2b in infrastructure development, mechanisation and training and processes products including ethanol and cassava starch among others. The Report also revealed over $2b in investments for infrastructure and other value chain related programming. Investors in the agricultural value chain include local, International and Global players including The World Bank, Dangote, Cargil, Ford Foundation, and the Bill and Melinda Gates Foundation among others.
