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Assessing government's effort to tackle rising cost of food
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The poor performance of the agriculture sector which places majority of Nigerians on the food insecurity index has prompted the federal government to embark on measures to stave off looming food crisis. HORATIUS EGUA in Abuja examines the details of the plan and assesses its likely impact on the war against hunger
On the global scale, food crisis is biting hard and protests have already broken out in countries such as Haiti, Mali, Senegal and Egypt and this has sparked off discussions on the international scales.
Since the alarm raised by the World Bank a few weeks ago, discussions on finding a way out of the crisis have gradually taken the front burner. Worried by the development, Ban Ki-Moon, the United Nations Secretary-General, has volunteered to chair a special task force to design a strategy to tackle the imminent global food crisis.
He told an audience in Geneva, Switzerland that the first priority of the task force will be to meet the $755 million shortfall in funding for the World Food Program (WFP).
"Without full funding of these emergency requirements, we risk again the spectre of widespread hunger, malnutrition and social unrest on an unprecedented scale," he told reporters in the Swiss capital, Bern, where the UN agency chiefs have been meeting.
Ban added that new measures must go beyond the usual approach of simply providing emergency food relief when crises hit.
The global alarm raised by different international and local organisations have sent jitters across the nation and consequently triggered off high cost of food in the country. Abba Ruma, minister of agriculture and water resources had admitted recently before the Senate Committee on Agriculture at a public hearing recently that hunger was imminent in the country and that something urgent needed to be done to avert the looming food crisis.
Despite the increasing production of cassava and tomato, Nigeria still ranks 20th on the 2006 global hunger index. All these are hinged on the poor performance of the agriculture sector, which places about 65 per cent of Nigerians on the food insecurity index.
President Umaru Yar'Adua, governors of the 36 states of the federation and top aides to the president have been brainstorming over the issue and have resolved to take proactive steps not only to provide immediate succour but also to design both short, medium and long term strategies to tackle the problem of food scarcity in the country.
As at today, the federal government spends about N70 billion annually on importation of rice and other grains into the country.
Ruma, told Business Day that the ministry was prepared to revolutionise the agricultural sector in the country with a view to guaranteeing food security for the nation and has consequently designed short, medium and long term strategies to present the imminent food scarcity.
He emphasised three core areas that the government has comparative advantages (grains, livestock and the fisheries) and noted that everything would be done to increase their production.
Nigeria, the minister stated has the capacity to enhance rice, wheat, sugar, cassava and tomato production as well as enhance the capacity to meet meat production in the country. He said the country needs about five million metric tonnes of fish but it can only provide about 500 metric tonnes annually leaving a gap of 4.5 million metric tonnes. Nigeria currently imports about 700 metric tonnes of fish from other countries
Investigations revealed that Nigeria spends about $267 million annually on the importation of over two million metric tonnes of rice while it produces only a mere 300 metric tonnes representing 0.96 per cent of the global production.
Short term strategies
On the short term measures taken by the government, the federal government has finalised arrangements for the immediate importation of 500,000 metric tonnes of rice at a cost of N80 billion (N40 billion including waivers) from Thailand and other parts of the world within the next five months to ameliorate the growing price of the food item in the country.
In the same vein, the government also set aside 1.68 per cent of the natural resources development fund for agricultural research and the development of the agricultural sector over the next four years.
All these measures, Ruma said are aimed at checking the impending food scarcity and ensuring stability of the prices of rice in the country.
"To save the situation and further ameliorate our conditions government will import 500,000 metric tonnes of rice immediately in addition to what we are producing at home now because we all know that there are several states in the country that are rice growing in the country, so we will encourage our people who are rice growing to grow more, the rains are here and rice takes about two to three months to mature, our people will be encouraged to grow more," Olusegun Agagu, governor of Ondo state told journalists, recently in Abuja, after an emergency session on food security with the 36 state governors, ministers and top presidential aides.
Agagu argued that the rice, when imported, would be sold to "our people at subsidized rates. These two measures are for the immediate term to dampen the escalating price in the markets and make food available to our people. People can shift from other food stuff that is expensive to rice. This is short term and we can't live on this forever. "
An additional 11, 000 metric tonnes of grain from the nation's strategic reserve has also been ordered to be released to create more availability to the consumers.
As part of the short term measure, Ruma disclosed that the ministry of agriculture and water resources was embarking on a one billion fingerlings project for fish farmers in the 2008 financial year to promote aqua culture and fishery development in the country.
The minister argued that if proper attention was paid to these three areas, the nation would not only be able to guarantee food abundance for its citizenry but would also be able to export to other countries within the sub-region and in the continent of Africa.
Ruma noted that the massive importation of 650,000 metric tonnes of fertilisers, which represents 50 per cent of the total fertiliser purchased in the eight years administration of former President Olusegun Obasanjo and the zero contract arrangement for tractors, were moves by the government to equally boost food production in the current farming season.
"We are happy that the respective state governors are declaring openly that for the first time in the history of a government that fertilisers are getting to them and on time. If the reverse was the case, I know by now people would have been calling for me to resign. We have said now, no contractor should handle the purchase of tractors again. It has to be on zero contract arrangement," he told Business Day.
He said the government also plans to float a bond to facilitate loans for the effective participation of the private sector in agricultural development.
Medium term strategies
The government in collaboration with the Stallion Group and the Thai government would focus attention on rice production. Livestock and fisheries would also receive a boost.
The involvement of the Sterling group in the local production of rice in Nigeria he said would be a big boost for the country stressing that Nigeria has comparative advantage in the production of rice and other grains.
The minister explained further that agriculture which "employs about two-thirds of the total labour force of the nation provides a livelihood for the bulk of the rural population (nearly three-quarters of the poor live in the rural areas," and challenged the private sector to be actively involved in the production of food in the country.
He however, lamented that going by the declining number of farmers in the country, who currently form the nucleus of agricultural production in the country, something urgent needed to be done to sustain the high target of food production of the Yar'Adua administration.
Long term measures
In a recent document presented to President Yar'Adua by the ministry of agriculture and water resources on the way forward, private sector-led improvement of the performance of Nigerian agriculture sector was amply encouraged.
The ministry suggested engaging fully the private sector as the main vehicle to drive the development of the agricultural sector in the country with emphasis on commercial agriculture (contract farming & co-operative based agriculture) in the areas of research and extension mechanisation, input provision, agro-processing, storage and market development.
Other measures as contained in the ministry of agriculture and water resources document presented to the president include, involvement of the three tiers of government, private sector and farming communities in programme implementation.
The nagging problem of shortage of tractors was also cited as an impediment to guaranteeing food security for the nation. The minister therefore said the government should boost tractor service scheme, (and other agricultural equipment) to ensure availability of at least additional 10,000 tractors per annum.
He also stressed the need for the establishment of agro-service centres; for the sale of quality inputs (e.g. fertilizers, seeds, and crop chemicals), handle equipment maintenance, other farm supplies, and marketing of farm produce.
Ruma did not leave out the rehabilitation of the degraded irrigation infrastructure under the River Basin and Rural development Authorities to ensure all season farming.
The urgent need to shore up the nation's storage capacity, especially the completion of on-going silo projects and the construction of a good number of specialised warehouses in the country, was also emphasised.
Since the alarm raised by the World Bank a few weeks ago, discussions on finding a way out of the crisis have gradually taken the front burner. Worried by the development, Ban Ki-Moon, the United Nations Secretary-General, has volunteered to chair a special task force to design a strategy to tackle the imminent global food crisis.
He told an audience in Geneva, Switzerland that the first priority of the task force will be to meet the $755 million shortfall in funding for the World Food Program (WFP).
"Without full funding of these emergency requirements, we risk again the spectre of widespread hunger, malnutrition and social unrest on an unprecedented scale," he told reporters in the Swiss capital, Bern, where the UN agency chiefs have been meeting.
Ban added that new measures must go beyond the usual approach of simply providing emergency food relief when crises hit.
The global alarm raised by different international and local organisations have sent jitters across the nation and consequently triggered off high cost of food in the country. Abba Ruma, minister of agriculture and water resources had admitted recently before the Senate Committee on Agriculture at a public hearing recently that hunger was imminent in the country and that something urgent needed to be done to avert the looming food crisis.
Despite the increasing production of cassava and tomato, Nigeria still ranks 20th on the 2006 global hunger index. All these are hinged on the poor performance of the agriculture sector, which places about 65 per cent of Nigerians on the food insecurity index.
President Umaru Yar'Adua, governors of the 36 states of the federation and top aides to the president have been brainstorming over the issue and have resolved to take proactive steps not only to provide immediate succour but also to design both short, medium and long term strategies to tackle the problem of food scarcity in the country.
As at today, the federal government spends about N70 billion annually on importation of rice and other grains into the country.
Ruma, told Business Day that the ministry was prepared to revolutionise the agricultural sector in the country with a view to guaranteeing food security for the nation and has consequently designed short, medium and long term strategies to present the imminent food scarcity.
He emphasised three core areas that the government has comparative advantages (grains, livestock and the fisheries) and noted that everything would be done to increase their production.
Nigeria, the minister stated has the capacity to enhance rice, wheat, sugar, cassava and tomato production as well as enhance the capacity to meet meat production in the country. He said the country needs about five million metric tonnes of fish but it can only provide about 500 metric tonnes annually leaving a gap of 4.5 million metric tonnes. Nigeria currently imports about 700 metric tonnes of fish from other countries
Investigations revealed that Nigeria spends about $267 million annually on the importation of over two million metric tonnes of rice while it produces only a mere 300 metric tonnes representing 0.96 per cent of the global production.
Short term strategies
On the short term measures taken by the government, the federal government has finalised arrangements for the immediate importation of 500,000 metric tonnes of rice at a cost of N80 billion (N40 billion including waivers) from Thailand and other parts of the world within the next five months to ameliorate the growing price of the food item in the country.
In the same vein, the government also set aside 1.68 per cent of the natural resources development fund for agricultural research and the development of the agricultural sector over the next four years.
All these measures, Ruma said are aimed at checking the impending food scarcity and ensuring stability of the prices of rice in the country.
"To save the situation and further ameliorate our conditions government will import 500,000 metric tonnes of rice immediately in addition to what we are producing at home now because we all know that there are several states in the country that are rice growing in the country, so we will encourage our people who are rice growing to grow more, the rains are here and rice takes about two to three months to mature, our people will be encouraged to grow more," Olusegun Agagu, governor of Ondo state told journalists, recently in Abuja, after an emergency session on food security with the 36 state governors, ministers and top presidential aides.
Agagu argued that the rice, when imported, would be sold to "our people at subsidized rates. These two measures are for the immediate term to dampen the escalating price in the markets and make food available to our people. People can shift from other food stuff that is expensive to rice. This is short term and we can't live on this forever. "
An additional 11, 000 metric tonnes of grain from the nation's strategic reserve has also been ordered to be released to create more availability to the consumers.
As part of the short term measure, Ruma disclosed that the ministry of agriculture and water resources was embarking on a one billion fingerlings project for fish farmers in the 2008 financial year to promote aqua culture and fishery development in the country.
The minister argued that if proper attention was paid to these three areas, the nation would not only be able to guarantee food abundance for its citizenry but would also be able to export to other countries within the sub-region and in the continent of Africa.
Ruma noted that the massive importation of 650,000 metric tonnes of fertilisers, which represents 50 per cent of the total fertiliser purchased in the eight years administration of former President Olusegun Obasanjo and the zero contract arrangement for tractors, were moves by the government to equally boost food production in the current farming season.
"We are happy that the respective state governors are declaring openly that for the first time in the history of a government that fertilisers are getting to them and on time. If the reverse was the case, I know by now people would have been calling for me to resign. We have said now, no contractor should handle the purchase of tractors again. It has to be on zero contract arrangement," he told Business Day.
He said the government also plans to float a bond to facilitate loans for the effective participation of the private sector in agricultural development.
Medium term strategies
The government in collaboration with the Stallion Group and the Thai government would focus attention on rice production. Livestock and fisheries would also receive a boost.
The involvement of the Sterling group in the local production of rice in Nigeria he said would be a big boost for the country stressing that Nigeria has comparative advantage in the production of rice and other grains.
The minister explained further that agriculture which "employs about two-thirds of the total labour force of the nation provides a livelihood for the bulk of the rural population (nearly three-quarters of the poor live in the rural areas," and challenged the private sector to be actively involved in the production of food in the country.
He however, lamented that going by the declining number of farmers in the country, who currently form the nucleus of agricultural production in the country, something urgent needed to be done to sustain the high target of food production of the Yar'Adua administration.
Long term measures
In a recent document presented to President Yar'Adua by the ministry of agriculture and water resources on the way forward, private sector-led improvement of the performance of Nigerian agriculture sector was amply encouraged.
The ministry suggested engaging fully the private sector as the main vehicle to drive the development of the agricultural sector in the country with emphasis on commercial agriculture (contract farming & co-operative based agriculture) in the areas of research and extension mechanisation, input provision, agro-processing, storage and market development.
Other measures as contained in the ministry of agriculture and water resources document presented to the president include, involvement of the three tiers of government, private sector and farming communities in programme implementation.
The nagging problem of shortage of tractors was also cited as an impediment to guaranteeing food security for the nation. The minister therefore said the government should boost tractor service scheme, (and other agricultural equipment) to ensure availability of at least additional 10,000 tractors per annum.
He also stressed the need for the establishment of agro-service centres; for the sale of quality inputs (e.g. fertilizers, seeds, and crop chemicals), handle equipment maintenance, other farm supplies, and marketing of farm produce.
Ruma did not leave out the rehabilitation of the degraded irrigation infrastructure under the River Basin and Rural development Authorities to ensure all season farming.
The urgent need to shore up the nation's storage capacity, especially the completion of on-going silo projects and the construction of a good number of specialised warehouses in the country, was also emphasised.
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