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Dipeolu, A. O., Momoh, S., Akinbode, S. O. & Edewor, S. E. National Agricultural Policy and Implementation of ECOWAP/CAADP, Nigeria Federal University.

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Presentation on theme: "Dipeolu, A. O., Momoh, S., Akinbode, S. O. & Edewor, S. E. National Agricultural Policy and Implementation of ECOWAP/CAADP, Nigeria Federal University."— Presentation transcript:

1 Dipeolu, A. O., Momoh, S., Akinbode, S. O. & Edewor, S. E. National Agricultural Policy and Implementation of ECOWAP/CAADP, Nigeria Federal University of Agriculture, Abeokuta, Nigeria

2 Background Information NIGERIA Total land area of 92.4million hectares About 32m hectares/ 34.6% are under cultivation. Potential Irrigable Area 3.14 million ha. Current Area under Irrigation 40,000 ha. Population of about 167 million people of which ~ 70% are involved in agriculture and allied services

3 Background Information Cont’d Nigerian agriculture is mostly subsistence and characterized by the use of hand implements like cutlasses and hoes. Agricultural Contribution to GDP 42 percent (2009) Nigeria’s food imports growing at an unsustainable rate of 11% per annum. Nigeria has the capacity to be food self- sufficient and still have enough to export.

4 Major Challenges Hindering Nigerian Agriculture Low investment and productivity Inadequate funding for research Climate change-induced challenges Organizational and weak policy environment Resource market failure Limited access to improved technologies Infrastructure inadequacies Financial market weaknesses

5 Reasons for Failure of Previous Intervention Policies/ Programmes Perception of agriculture as a developmental issue instead of business concern. Lack of continuity as political leadership changes Non-mobilization and involvement of non-state actors Top-bottom approach to conceptualization and formulation of policy Poor policy implementation. Inadequate objective monitoring and evaluation of policy programmes

6 The Agricultural Transformation Agenda Launched in late 2011 Goals: Add 20 million MT of food to the domestic food supply by 2015. Stimulate the creation of 3.5 million jobs along the agricultural value chains To drive import substitution by accelerating the production of local food staples to reduce dependence on food imports and turn Nigeria into a net food exporter. Finally, to stop treating agriculture as a development program but as a business so as to generate wealth for millions of Nigerians.

7 MAJOR ENTERPRISES PRODUCED Priority areas are Crop production, livestock (poultry) and fisheries Thirteen crops (cassava, rice, millet, sorghum, wheat, maize, sugar, cowpeas, soybean, tomato cotton, cocoa, and oil palm) were selected for special focus because they meet the criteria of size, linkage effect, “pro-poorness” and market opportunities established in the CAADP brochures.

8 Transformation reforms in.. Fertilizer distribution system Marketing institutions Financial value chain Agricultural investment framework.

9 Comprehensive Africa Agriculture Development Programme (CAADP) CAADP - an initiative by African government under AU/NEPAD agenda to eliminate poverty and hunger among African countries. In Nigeria, the focus of the ECOWAP/CAADP process The government’s 7-point agenda has been replaced with “Transformation Agenda” while the 5-point agriculture agenda has been replaced with Agriculture Transformation Agenda (ATA) due to a change in government To strengthen and add value to the 5-point Agriculture agenda derived from the Government’s 7-point agenda. This is expected to achieve MDG1.

10 CAADP Objectives To improve food security, nutrition, as well as increase incomes in Africa’s largely farming based economies. To combat poverty and hunger through agricultural development by raising agricultural productivity by at least 6 percent per year and increasing public investment in agriculture to 10 percent of annual budgets. Expected outcome To lead Africa to economic growth through agricultural development.

11 The Pillars of CAADP… Land water management Market Access Food supply and hunger eradication Agricultural research These pillars have been coalesced into the Agricultural Transformation Agenda (ATA)

12 Harmonizing CAADP & ATA A workshop with all stakeholders has been held to finalize harmonization of CAADP and ATA documents Proceedings published. More of such workshops are to be held. The results obtained from ATA will mean that CAADP objectives are progressively being met

13 Government incentives to support investors in agriculture Zero percent (0%) duty on agricultural machinery and equipment imports Removal of restrictions on areas of investment and maximum equity ownership in investment by foreign investors Constitutional guarantees against nationalization/expropriation of investments Pioneer Tax Holiday for agricultural investments Duty Waivers and other industry related incentives e.g., based on use of local raw materials, export orientation etc. Free repatriation of capital and returns Infrastructure support, with special focus on Staple Crop Processing Zones.

14 Agricultural Policies Liberalize foundation seed policy to allow private sector to commercialize seeds Eliminate government distribution of fertilizers and replace with private sector distribution Move away from a flat fertilizer price subsidy to targeted support to small holder farmers Incentives to engage young commercial farmers for farming as a business Development of Agribusiness Entrepreneurship Centres Farm skill acquisition centres Access to land and finance

15 other policies… Create institutions to support the agricultural transformation agenda Marketing Corporations, to replace marketing boards Transform the Agricultural Research Council (ARCN) to a National Agricultural Transformation Agency like EMBRAPA that transformed Brazilian agriculture Guaranteed minimum price for food crops to stabilize prices Revise the Land Use Act to enable easier access to land for investors Rapid expansion in irrigation facilities and revamping of existing ones

16 Some Actions: Government hands off fertilizer distribution and the use of E-wallet system Creation of marketing corporations to link farmers. Increasing functional irrigated land from 40,000 ha. to 200,000 ha by 2013. Creating market for cassava products such as HQCF, modified starch, livestock feeds, high fructose cassava syrup to replace sugar used in the industry and ethanol. Nigerian Incentive-based Risk sharing System for Agricultural Lending (NIRSAL) integrates agriculture value chain with agriculture financing. Building of rice mills e.g. Ebonyi Rice Mill and the plan to build more. Signing of MOU on N4.3 Billion with the Bank of Industry for the funding of cassava value chain to support 20% replacement of wheat in bread.

17 RURAL DEVELOPMENT COMPONENT Existence of the Rural Access Mobility Project (RAMP) which is in the second phase to complete 500km of rural roads in 4 states. Existence of Rural Finance Institution Building (RUFIN) project to expand microfinance institutions in the rural area.

18 Drivers of success Enabling environment for private sector participation in agriculture Broad participation in policy process Local control where there is capacity Effective accountability mechanism Willingness to learn from experience Effective coordination mechanism

19 Limitations of the Nigerian Agricultural policy A general lack of coherence Problem associated with programme continuity Issues to other sectorial policies Implementation issues at various institutional level( No clear defined roles) No accountability mechanism with proper monitoring and evaluation

20 some results The number of farmers who have so far received their subsidized inputs via Growth Enhancement Scheme (GES) and Electronic Wallet Scheme in 2013 is over 3.7 million using mobile phones The success of e-wallet scheme and the GES has encouraged fertilizer and seed companies to develop their supply chains to reach farmers directly. Value of fertilizer and seed sold directly to farmers in 2012 by private fertilizer companies amounted to N15 billion and N1.5 billion respectively.

21 results.. Additional 17 million MT of food produced in 2014 –90% higher than the annual target of 5 million MT Food imports declined by N857 billion by end of 2012 – a 144% achievement above the target of N350 billion Import bill on wheat, rice, sugar declined by $3 billion in 2012 Establishment of a $60 million cassava-bread fund

22 yet more results… Agricultural exports expanded by 822,000 MT in 2012 – 144% higher than the target of 364,000 MT. Agricultural sector’s contribution to non-oil exports expanded by N759 billion – 493% above the target of N128 billion. Over 2.7 million farm jobs were created – 77% of the target of 3.5 million jobs by 2015

23 Summary CAADP framework of improving food security are subsumed under ATA. Non-state actors such as private companies, dealers, civil society organizations and farmers are involved in the implementation of ATA. Fertilizer and seed distribution value chain are being developed. Appreciable increase in the output of some targeted crops. Achieving the MDG1 before 2015 Emergence as Africa’s largest economy with a GDP of $432billion Generating of N722billion because of decline in export

24 THANK YOU FOR LISTENING


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