Nigeria’s food import bill dropped by over N400bn ($2.55bn) to N684.7bn ($4.35bn) by December 2013 from N1.1tn ($6.9bn) in 2009, the Federal Government has said.
The government also said that the sum of N50bn had been set aside as agricultural mechanisation fund.
The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, said the country’s food import bill had continued to decline since 2009.
Nigeria’s food import bill dropped by over N400bn ($2.55bn) to N684.7bn ($4.35bn) by December 2013 from N1.1tn ($6.9bn) in 2009, the Federal Government has said.
The government also said that the sum of N50bn had been set aside as agricultural mechanisation fund.
The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, said the country’s food import bill had continued to decline since 2009.
Adesina spoke in Abuja on Monday at the inauguration of the 100,000-metric-tonne silos complex and the private sector-driven Agricultural Equipment Hiring Enterprises.
He said, “Today marks another milestone in the drive and journey of Nigeria to modernise its agricultural sector. There is no doubt that agriculture is growing rapidly in Nigeria. Private sector investments in agriculture are expanding.
“All across the nation, smallholder farmers are witnessing a refreshing new dawn. Our food import bill has declined from N1.1tn ($6.9bn) in 2009 to N684.7bn ($4.35bn) by December 2013 and continues to decline in 2014.”
He noted that despite the gains in the sector, there were still challenges and stated that “one of such challenges is the low level of mechanisation of the agriculture sector.”
Adesina said “The number of tractors per 100 square kilometres in Nigeria is less than 10, compared to over 728 in the United Kingdom; 257 in the USA; 200 in India; 130 in Brazil; and 125 in the Philippines.
“Therefore, productivity per area of land and productivity for labour in the agriculture sector of these countries are much higher than in Nigeria. Nigeria must, as a matter of national priority and urgency, fully mechanise the agricultural sector.”
The minister said hoes and cutlasses did not reflect a modern agricultural system.
He said the country must aggressively privatise the commercialisation of agricultural machinery.
Adesina said, “I wish to state clearly that the ministry no longer buys and distributes tractors as had been the practice for decades. The ministry now supports the private sector to drive the mechanisation of Nigeria’s agriculture.
“What you are witnessing here today is the establishment of what we call Agricultural Equipment Hiring Enterprises, driven by the private sector. They will provide access to affordable agricultural mechanisation services for farmers.”
He said the government was building up the country’s storage capacity, both silos and warehouses, to store food and reduce food losses.
The minister noted that the nation currently had 1.3 million metric tonnes silos and stated that the newly inaugurated 100,000-metric-tonne capacity silos was the largest in West Africa.
In his address, President Goodluck Jonathan said he had directed the Central Bank of Nigeria to set aside N50bn as the agricultural mechanisation fund.
Jonathan, who inaugurated the facility, was represented by Vice President Namadi Sambo.
The President said, “As part of our drive to leaving the use of hoes and cutlasses, and to replace them with modern agricultural equipment, I direct the Central Bank of Nigeria to set aside the sum of N50bn mechanisation support fund.
“This support fund will allow and enable the full establishment of the 1,200 private sector-driven agricultural equipment hiring enterprises across all states of the federation.”
He said the agricultural mechanisation programme would be driven as a public-private partnership involving the manufacturers of tractors and agricultural machinery, service providers, financial institutions and the government.
Jonathan noted that over the next three years, the scheme would make available a minimum of 6,000 units of tractors and 13,000 units of various harvesting equipment.
He said, “The first phase of the mechanisation programme, which I am launching today, will make available immediately 590 units of tractors, 500 power tillers and harvesting equipment, which will be used to set up 118 agricultural equipment hiring enterprises across the country.
“In addition to this, a total of 24 agricultural equipment hiring enterprises will be established to typically support youths and women.”
The President noted that the Federal Government, through the Ministry of Agriculture, had made available the sum of N4.5bn to support the provision of affordable refinancing facilities through the Bank of Agriculture.
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