Industry players have hinged the success of next year’s proposed ban on rice importation by the Federal Government on the effectiveness of the Nigerian Incentive-Based Risk-Sharing for Agricultural Lending (NIRSAL) scheme, launched by the Central Bank of Nigeria (CBN) last year.
Local farmers who currently produce three-fifths of the five million metric tonnes of rice consumed annually in the country, say they are well able to fully meet local demand, but for poor access to inputs such as fertiliser and credit facilities. The monetary value of the said five million metric tonnes of rice consumed in the country annually, is put at about N360 billion.
The rice farmers maintain that they must receive more support in terms of funding and technical assistance, to be able to produce the remaining two-fifths of the volume of local rice consumption, which amounts to about 40 million 50 kg bags, locally.
Abdulghaniyy Alabi-Ojolowo represents the rice value chain in the Commercial Agriculture Development Association (CADA) Lagos chapter and is also president of the Rice Farmers’ Co-operative.
He said: “Next year’s ban on importation of rice would be possible if this government policy to finance farmers’ production along the agricultural value chain is well implemented.”
NIRSAL, according to Sanusi Lamido Sanusi, governor of the CBN, is expected to resolve issues related to agricultural inputs supply to farmers and provide technical assistance to help organise farmers into co-operative groups that can act as recipients of working capital for co-operative production.
The aim is to ensure that all operators along the value chain get support.
Alfred Uwheraka, chief executive of Frijay Consult, an agro-allied firm, expressed confidence in the ability of NIRSAL to resolve issues of the country’s dependence on food imports, if well implemented. He, like other industry players is concerned about the fact that many government policies are not backed long enough with the willpower needed to yield desired results.
NIRSAL is expected to address five areas of agricultural lending with an estimated $500 million, which will be provided by the CBN. These areas include risk-sharing - the CBN will share any loss with banks on agricultural loans. It also includes insurance facility, technical assistance to equip banks and producers, bank ratings which will rate and publicise banks’ agricultural lending effectiveness and their social impact. Subsequently, cash awards will be given to banks to further strengthen their lending to the agricultural sector.
Ojolowo said rice farmers are hopeful that if this policy and others, as articulated by the current minister of agriculture, Akin Adesina, are carried out effectively, there would be enough incentive for rice farmers to step up production and produce the estimated 40 million bags of rice currently being exported annually.
He said rice can be grown in all the states in Nigeria, including the federal capital territory. “But the notable rice producing states are Niger, Kano, Jigawa, Benue, Kogi, Kwara, Kaduna, Cross River, Ebonyi, Ekiti, Edo, Ogun and Lagos. It should however be noted that rice can be grown on any type of land, it is the varieties suitable on such lands that differ. However, Niger state, where the National Cereal Research Institute in Badeggi is located, is the largest producer of rice in the country.”
