Agric Sector in 2021: Still Work in Progress

Nigeria’s agriculture sector growth remained positive through 2021, but at a considerably slower pace. Although, the sector grew by 1.22 per cent year on year in real terms in the third quarter of the year under review, Gilbert Ekugbe writes that all hands must be on deck to take the sector out of the doldrums.

The year 2021 was an eventful year for Nigerian agricultural sector. It witnessed the sack in September of the under-performing Minister of Agriculture and Rural Development, Mr. Sabo Nanono. But not much has changed since he left. According to the National Bureau of Statistics (NBS), the sector grew by 7.95 per cent year-on-year in nominal terms in Q3 2021, showing a fall of 5.57 per cent points from the same quarter in 2020.

Crop production remained the major driver of the sector as it accounts for 87.32 per cent of the overall nominal growth of the sector in the third quarter of 2021 while quarter on quarter growth stood at 38.48 per cent in the third quarter of 2021.

Agriculture contributed 26.57 per cent to nominal Gross Domestic Product (GDP) in the third quarter of 2021 with the report adding that agriculture contributed 26.57 per cent to nominal GDP in the third quarter of 2021, stating that the figure was lower than the rate recorded for the third quarter of 2020 and higher than the second quarter of 2021 which recorded 28.41 per cent and 22.13 per cent respectively.

The report also revealed the sector contributed 29.94 per cent to overall GDP in real terms in Q3 2021, lower than the contribution in the third quarter of 2020 and higher than the second quarter of 2021, which stood at 30.77 per cent and 23.78 per cent respectively.

Import, export commodities
The NBS report gathered that agricultural import accounted for N1.3 trillion of total trade in the sector while export stood at N292.5 billion within the same period representing a trade deficit of N1.07 trillion in the agriculture sector.

The report also added that Durum wheat, mackerel, herrings, edibile mixtures, crude oil palm and malt were top agricultural imports into the country from countries such as Canada, Denmark, Netherlands, Russia, Lithuania and France.

As at second quarter of 2021, Nigeria exported agro-food items valued at N162.27 billion representing a 112 per cent increase compared to N78.03 billion recorded in the corresponding period of 2020 and also represents a 30 per cent increase when compared to N127.18 billion worth of export recorded in the previous quarter (Q1 2021).

During the third quarter in 2021, the agricultural export was valued at 5.9 per cent lower than second quarter 2021, nut 31.0 per cent higher than third quarter 2020. Cocoa beans were Nigeria’s major traded agricultural product valued at approximately N55 billion while cashew nuts in shell were the second most traded agricultural products from Nigeria followed by sesame seeds as at second quarter of 2021.

The Asian continent was Nigeria’s main trade partner in agricultural products’ exports with an estimated export value of N108 billion while Europe occupied the second largest trade partner to Nigeria valued at N39 billion.

CBN’s ABP
The Central Bank of Nigeria (CBN) stated that the disbursement of the Anchor Borrower’s Programme (ABP) since in 2015, has reached a total of N756.51 billion to over 3.7 million farmers that have benefited from the scheme. The apex bank also stated that so far, the sum of N121.57 billion has been disbursed to 32,617 beneficiaries under its Agribusiness, Small and Medium Enterprise Investment Scheme, an initiative it introduced in February 2017 by the Monetary Policy Committee (MPC).

The ABP, according to the present administration, was to boost agricultural production and reverse Nigeria’s negative balance of payments on food. However, data obtained from the CBN’s fourth quarter 2020 economic report showed that CBN recorded a shortfall of N378.5 billion in loan repayment by beneficiaries under the programme in six years.

Farmers’ and insecurity
No thanks to the high level of insecurity across the country, farmers suffered about 50 per cent production losses as a result of insecurity. Particularly farmers in the northern part of the country have fled their farms over fear of being kidnapped by Islamist terror groups. Stakeholders in the industry, however, have called on the federal government to redesign the nation’s security architecture, saying that the situation is bringing about untold hardship on already impoverished Nigerians as food inflation continued to rise pushing many Nigerians into abject poverty.

The former president, Lagos Chamber of Commerce and Industry, Mrs. Toki Mabogunje, noted with serious concerns the worsening security situation, saying that it is scary that banditry attacks, abduction, herders-farmers conflict, vandalism and insurgency have become recurring incidences in Nigeria as many households have lost their means of livelihood.

Approval of farm estates
President, Muhammadu Buhari, ordered the setting up of integrated farm estates in all 108 senatorial districts nationwide to achieve food security. According to the Executive Secretary of National Agricultural Land Development Authority (NALDA), Mr. Paul Ikonne, who is saddled with the responsibility to create the farm estates, the scheme was aimed at engaging youths to achieve food security in the shortest possible time.

Ikonme said that the move was aimed at making agriculture attractive to young Nigerians. He, however, stated that so far only Kogi and Ogun State Governments have keyed into the programme. Kogi State Government donated 700 hectares of land while 100 hectares of land was donated by the Ogun State Government.

Nigeria’s Harvest loss
ActionAid’s Country Director, Ene Obi, at the 3rd ECOWAS Agriculture Budget Summit, said that Nigeria’s suffered post-harvest losses of N3.5 trillion annually. Ene called on economic managers to develop measures that would attract investments. The country director also tasked them to come up with strategies in the areas of essential services such access to credit, women in agriculture and post-harvest losses reduction.

A survey conducted by Research and Strategic Communications Consulting Firm, SBM Intel, indicated that about 47 per cent of Nigerian farmers have no access to post-harvest storage facilities.
According to the firm, this inadequacy could lead to post-harvest losses for the farmers that might not be able to arrest the situation by acquiring their storage facilities. The report said: “The lack of storage facilities contributes to post-harvest losses which could get as high as 60 per cent for tubers, fruits and vegetables.”

Statistics showed inadequate storage, processing facilities and wastages in tomatoes value chain is costing the country’s economy about $15 billion in PHL annually.

FG’s reassurance
Earlier in the year, the Secretary to the Government of the Federation, Mr. Boss Mustapha, at the public lecture and investiture ceremony of the 6th Chairman of the Abuja Chapter of the Nigerian Institute of Environmental Engineers, Ms. Lynda Elesa, said restrictions on movement following the outbreak of COVID-19 led to a decline in agricultural productivity and threatened food security in the country.

However, the Minister of State for Agriculture, Mr. Mustapha Shehuri, has said that the federal government was committed to ensuring food security despite the COVID-19 pandemic and assured that ongoing collaboration with research institutions would make Nigeria self-sufficient in food production.

The federal and state governments’ officials from ministries of agriculture also reviewed policies and programmes of Nigeria’s agricultural sector to avert the looming food crisis that could arise from insecurity on farmlands. The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Mr. Ernest Umakhihe, at the official’s session-opening ceremony of the 44th National Council on Agriculture and Rural Development, said the federal government implemented prevailing frameworks of the National Economic Sustainability Plan (NESP) and the Nigerian Agricultural Technology and Innovation Plan (NATIP) as a strategy for food resilience and economic development.
Stakeholders’ plea

The National President of the All Farmers Association of Nigeria (AFAN), Mr. Kabir Ibrahim, in a chat with THISDAY, said that the country is still grappling with insecurity, COVID-19 pandemic and climate change. Ibrahim argued that these have affected farmers’ productivity.

He said: “We have a food insufficiency situation in our hands that is escalating the prices of food. In order to do better in 2022, we need to get our acts together and all interventions from the CBN, NISRAL, NALDA and the works that needs to be done by the Federal Ministry of Agriculture should all be put together to bring solutions to address the challenges of food production.”

He said the new NATIP must be implemented judiciously to impact the food system positively and recommended that the CBN’s intervention should be reappraised to target the real farmers.
On his part, the Director General, Premier Agribusiness Academy (PAA), Mr. Francis Toromade, described 2021 as a tough year for farmers, especially in those in maize and soybeans productions.

Totomade said: “It was tough for farmers because the price of maize and soybeans has never been high like this since I joined the industry in 1987. This is highest price ever. Soya is not available and when you find it, it is very expensive. Farmers cannot transfer the high cost to consumers and it has made the business difficult for farmers. 2021 was not a good time for farmers. Farmers are not smiling, farmers are groaning. This is supposed to be the time price of soya beans and maize should go down, but the price is skyrocketing. The insecurity in the country has not encouraged farmers to produce.”

He said that effort by the federal government to intervene in agriculture is a drop in the ocean, adding that his academy is training farmers to boost their productivity. He also called on the federal government to address the insecurity situation in the country.

An Economist and the Chief Executive Officer, Centre for the Promotion of Private Enterprises, Dr. Muda Yusuf, stated that Nigeria, as a matter of urgency, must invest in mechanised farming. Yusuf lamented that Nigeria with a population size of about 200 million people is still depending on hoes and cutlasses to meet its food demands.

He said: “The projections for the sector in 2022 are not too good given all these challenges that the sector is facing. There is problem of security and there is also nothing on the horizon to show that the issue will be addressed anytime soon even as the problem seems to be getting worse. If we do not fix security, how are we going to get people farming and if people are not farming how do they produce and if they are not producing how will the price come down. So the outlook from the point of insecurity and logistics, inadequate application of technology to agriculture, the problems are still there.”