Foreigners taking over Nigeria’s agric sector, says FG

Foreigners are currently taking over Nigeria’s agricultural sector as a result of the excessively high interest rates being demanded from indigenous agriculturists by Deposit Money Banks, the Federal Government has said.
 
Senator Heineken Lokpobiri
Minister of State for Agriculture and Rural Development 
Speaking on the sidelines of a seminar organised in Abuja by the Danish Embassy in Nigeria on value development in the country’s food and agriculture sector, the Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri, said the major challenge inhibiting the desired development of the country’s agricultural sector was poor access to finance.

Lokpobiri stated, “The major challenge bedevilling this industry is access to finance. Agricultural financing in Nigeria is too costly; for even at nine per cent you can’t find it. They will ask you for all forms of collateral, the CBN will say bring your father’s house, bring this, bring that.

“But if you have a company that is ready to support agro investors, then people will invest. If you have access to cheap funds, you will be able to invest on a long term basis. Instead of getting a loan from a commercial bank at 25 to 30 per cent, you can have it at two per cent and pay back in about 30 years. Here, you don’t have such funding. That is what we are talking about.

“And that is why if you look at it now, foreigners are taking over the agro sector here; either from India, they get it (loan) at three or four per cent, or from Europe at two or three per cent. But here, it is 30 per cent and they (banks) are not even willing to give. The only way you can compete with others is for you to have cheap funds that will reduce your production costs.”

Lokpobiri explained that the economic system being run in Nigeria over the years had made it possible for the banking sector to hold the country hostage with high interest rates, adding that this was why the government often borrowed less from the domestic market.

He said countries that invested in agriculture earned far better than Nigeria, adding that oil production would not salvage the country’s economy.

The minister added, “Nigerians shouldn’t think that we have oil and that oil is going to salvage this country. Countries that are investing in agriculture are getting much more profits than what we get from oil. Do we even get up to $30bn from oil? That is the point.

“Denmark, with a population of about five million people and less land mass than Nigeria, has a net agro export worth over €80bn. Now, ask yourself this question, how many billion dollars do we get from oil export? This clearly shows that there is more profit in agro investment than even in oil investment.”




Comments

Post a Comment

Popular posts from this blog

Agric forum to encourage greater technology use by women

Image
Organizers of a one-day agricultural forum for women in Benin, the Edo State capital, have said the event will focus on increasing the awareness of available agricultural and outreach technologies for women in agriculture. The forum which will be anchored by Market Development Programme in the Niger Delta (MADE) with funding from UK Aid, is collaborating with Markets II, funded by USAID and Foundation for Partnership Initiatives in the Niger Delta, PIND and the Edo State Cooperative Farmers’ Agency is being held for womenas part of activities to mark this year’s International Women’s Day. Mr. Fidelis Ekom, MADE’s Communications and Advocacy Manager, in a statement at the weekend said the forum also seeks to facilitate mindset change for women in the adoption of modern technologies and to facilitate engagement between women in agriculture and relevant value chain actors. Ekom said the forum will bring together women farmers in aquaculture, cassava, palm oil, poultry, hon
Read more

7 FEPSAN members to produce 1m tonnes under Presidential Fertiliser Initiative

Image
Seven active blending companies within the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) have been revived and are among the 1st of five batches that would produce 1 million tonnes of fertiliser under the Presidential Fertiliser Initiative, Thomas Etuh, President of FEPSAN has said. Etuh who disclosed this while speaking on Presidential Fertiliser Initiative noted that most of the plants owned by FEPSAN members are being revived after being dormant for over a decade. He expressed the hope that more plants would join the initiative before the end of April “Some of the blending plants which have already been supplied with raw materials including phosphate from Morocco and are blending include Fertiliser and Chemicals Ltd, Kaduna, producing 300,000 metric tonnes; Al-Yuma Fertilizer Company (300,000 metric tonnes) in Madobi-Kano; Kano Agricultural Supply Company, supplying 15 trailers daily and Golden Fertiliser based in Lagos. “Others blending plants ha
Read more

Over 100 exhibitors from 18 countries register for agrofood Nigeria 2017

Image
Fairtrade, the German trade fair specialist organisation, has said more than 100 exhibitors from 18 countries have confirmed their participation at the agrofood Nigeria, making it a record participation. The event which will take place from 28 to 30 March 2017 at the Landmark Centre in Lagos has attracted exhibitors from Austria, Benin, China, Denmark, Egypt, France, Germany, India, Italy, Kenya, Netherlands, Nigeria, Poland, South Africa, Taiwan, Togo, Turkey and the United Kingdom. agrofood Nigeria consists of the following exhibition topics: Agriculture, Process & Packaging, Food Ingredients, Food & Drinks and Foodservice Equipment. “For the third year, the French agrofood association adepta leads a delegation of French companies to agrofood Nigeria”, said Aude Roelly, Area Sales Manager for Sub-Saharan Africa, adepta. “From farm to fork, companies specialized into equipment and know-how for agriculture, livestock, food processing and packaging offer their
Read more