2011

Policy and Agricultural Development in Nigeria: Challenges and Prospects

Opening Speeches
25th Farm Management Association of Nigeria (FAMAN) Conference (AKURE 2011), held at the Federal College of Agriculture, Akure

Policy and Agricultural Development in Nigeria: Challenges and Prospects

PROGRAMME OF EVENTS 25th Farm Management Association of Nigeria (FAMAN) Conference (AKURE 2011), held at the Federal College of Agriculture, Akure on 5th - 8th September, 2011 Theme: Policy and Agricultural Development in Nigeria: Challenges and Prospects Time Event Venue Monday: September 05, 2011 4pm 10pm Arrival and Registration of Participants Main Auditorium, Contact: Mrs. Dare-Olamiju Federal College of 08034221875 Agriculture, Akure Tuesday: September 06, 2011 8am 10am Registration of Participants continue Main Auditorium 10am 2pm Opening Ceremony Main Auditorium, 1. Opening Prayer Federal College of 2. Introduction of Guests Agriculture, Akure 3. Welcome Address by the Provost, FCA 4. Chairmans Opening Speech 5. Presidents Welcome Address 6. Keynote Speeches a. Dr. Paul Ilona b. Prof. Sunday Fasina 7. Award Presentation a. Ms. Valerie Rhoe b. Prof. Igbekele Ajibefun c. Mr. Akindele Ogunlade d. Dr. (Olori) Mojisola Adesida 8. Launching of FAMAN Journal and Proceedings 9. Vote of thanks Dr. Samson Odedina 10. Closing Prayers 11. Group Photograph 2pm 3pm Break 3pm 5pm First Technical Session GROUP ONE: Papers A1-A4 and Papers G1-G8 Main Auditorium GROUP TWO: Papers B1-B4 and Papers G9-G16 Classroom A GROUP THREE: Papers C1-C8 and Papers G17-G20 Classroom B GROUP FOUR: Papers D1-12 Classroom C 6pm 8pm Conference Cocktail Dam side, FCAA Wednesday: September 07, 2011 9am 2pm Second Technical Session GROUP ONE Main Auditorium Papers A5-A8 and Papers G21-G28 GROUP TWO: Papers C9-C16 and Papers G29-33 GROUP THREE: Papers F1-F5 and Papers G17-G20 GROUP FOUR: Papers E1-E12 Annual General Meeting (AGM) of FAMAN Election of New National Officers Thursday: September 08, 2011 8am 2pm Excursion 3pm 5pm Departure 3pm 5pm Classroom A Classroom B Classroom C Main Auditorium

25th Farm Management Association of Nigeria (FAMAN) Conference

WELCOME ADDRESS DELIVERED BY THE PROVOST, FEDERAL COLLEGE OF AGRICULTURE, AKURE, DR. MARY O. OGUNKOYA AT THE OPENING CEREMONY OF THE 25TH FARM MANAGEMENT ASSOCIATION OF NIGERIA (FAMAN) CONFERENCE (AKURE 2011), HELD AT THE FEDERAL COLLEGE OF AGRICULTURE, AKURE ON TUESDAY, 6TH SEPTEMBER, 2011 Honourable Commissioner of Agriculture Ondo State, Honourable Commissioner of Agriculture, Ekiti State Chairman of this occasion, Kabiyesi, the Afunbiowo II, Deji of Akure, Oba Adebiyi Adesida National President of FAMAN, Prof. Isiaka Mohammed Our Keynote Speakers, Dr. Paul Ilona and Prof. Sunday A. Fasina Members of College Management and Academic Board Distinguished Fellows of FAMAN Distinguished Awardees Members of FAMAN Ladies and Gentlemen Friends and Alumni of the Federal College of Agriculture, Akure (FCA) Great Students of the Federal College of Agriculture, Akure (FCA) It gives me great pleasure to welcome you all to the 25th Annual Conference of the Farm Management Association of Nigeria (FAMAN). I am happy that this Jubilee of the Association is being hosted by Federal College of Agriculture, Akure, undoubtedly one of the leading institutions producing middle level manpower for the agricultural sector of the Nigerian economy. The Federal College of Agriculture has metamorphosed from a School of Agriculture under the University of Ife, later Obafemi Awolowo Universitys Institute of Agricultural Research and Training (IAR&T) to its present status as a full-fledged monotechnic. I am very delighted to know that the theme of your conference is: Policy and Agricultural Development in Nigeria: Challenges and Prospects. The choice of this theme is indeed appropriate at this critical point of our national development and more importantly as Nigeria had in place a myriad of policies which have direct and indirect influence on agriculture. Yet, the extent to which our collective resolve as agriculturists has made the policies to properly position the sector is a cause for worry. To this extent, I urge participants at this unique conference, to look critically at the various factors that have affected agricultural policies in Nigeria and proffer the way forward with a view to restoring the glory of agriculture as the leading contributor to the Nigerian economy. The Federal College of Agriculture Akure is presently a respected player in existing partnership and collaboration in research for development, vocational studies and entrepreneurship issues alongside our regular programmes. We are in the last leg of a threeyear partnership with the Bill and Melinda Gates supported Cassava: Adding Value for Africa (C:AVA) project in collaboration with the Natural Resources Institute (NRI) of the University of Greenwich United Kingdom. The project has empowered Small and Medium Scale Enterprises (SMEs), farmers and processor groups participating in cassava value chain activities in Ondo State. Last year, the College was named the Regional Multiservice Extension Center (REMSEC) for the southwest on the FAO/NPFS/SSC project involving demonstration and dissemination

Policy and Agricultural Development in Nigeria: Challenges and Prospects

of cutting edge Chinese agricultural technologies to Nigerian farmers. The FCA, Akure REMSEC was the first to demonstrate successfully the fish cage culture, bamboo utilization and orchard management components of the project. Over the last two years, the College have conducted short training programmes for 1200 existing and emerging farmers, and businessmen in 10 viable agribusiness areas. Entrepreneurship study is compulsory for all our final year students with credit earned through successful planning and undertaking of at least one farm venture before graduation. It is always our joy witnessing our trainees selling their products profitably before leaving our shores. The College is also one of the three Colleges of Agriculture in Nigeria which had been adjudged qualified for the second round funding by the Agricultural Research Council of Nigeria (ARCN) project of Adopted villages and schools based on our performance in spreading proven agricultural technologies to the schools and communities around us. Generally speaking, the College is also blessed with very sound, talented young and dynamic trainers. It is therefore my hope that at the end of this conference, many of you will see to or think of whatever collaborative training and research work you can do with the College. Distinguished conferees, let me inform you that, Akure, the capital of Ondo State, the Sun Shine State is a very peaceful and hospitable, fast growing city, It is cosmopolitan in nature as it is home to people from different parts of this country and of course of the world. It is very secure and also the home of many historical sites you may wish to visit. Around the city we also have significant tourist attraction centres or sites. I therefore wish to enjoin you to please feel free to create time to visit some of these interesting centres. Let me once again specially acknowledge the presence of the Kabiyesi and his Olori and thank them for their presence. Finally, I wholeheartedly welcome you to the Federal College of Agriculture, Akure and I wish you a very fruitful deliberation. Thank you and God bless. DR. MARY O. OGUNKOYA

25th Farm Management Association of Nigeria (FAMAN) Conference

TRANSFORMING NIGERIAN AGRICULTURE: EMERGING REALITIES Paul Ilona Harvest Plus, Nigeria Nigeria has travelled far on the road to conquest of nature and is everyday coming closer; yet some of the problems that have afflicted the population since independence remain unsolved. Too many Nigerians still suffer from the threat of hunger and poverty is ever present. Today we are confronted with a global challenge in human history which, if not addressed, could sweep away the little progress we have so far achieved this is the upward surge in population at a rate never experienced before. The population of Nigeria at independence in 1960 was 35 million but this has soared to 150 million in just 50 years. Political liberty is not an end in itself; it must provide citizens with the opportunity to achieve an adequate standard of living food, clothes, shelter and education without which independence becomes an empty word. If we are having trouble in producing adequate supplies of food for 150 million people today, what a problem lies 30 years ahead when we shall have to feed about twice that number? Until the early 1960s when Nigeria first discovered oil, popularly called the Black gold at Oloibiri, agriculture was the mainstay of the economy and accounted for over 60 percent of global exports of palm oil, 30 percent of groundnut, and 15 percent of cocoa. The diversity of these crops gave each region of the country a mark of identity with the East specializing in the production of oil palm, the West in cocoa, and the North in groundnut. Today, the reverse is the case. There is little or no export of agricultural products, instead the country depends largely on food imports to feed the ever-growing population. According to the Governor of the Central Bank of Nigeria, Mr Lamido Sanusi, in a statement he made on 15 July 2011 at a stakeholders conference on Incentive-Based Risk Sharing System for Agricultural Lending, Nigeria spends on average 630 billion naira annually to import food. This huge sum is sufficient to establish every year over 300 agro-allied industries at an exaggerated cost of two billion naira per industry and each employing 5000 people along the product value chain. For a long time now, Nigerians have known that things are no longer at ease in the agricultural sector and have resigned to faith. Despite considerable efforts in understanding the nature and causes of deterioration to the agricultural sector it continues to be a problem of staggering proportion to successive governments. This is a situation which cannot fail to give rise to concern and thus stresses the need for courageous planning and leadership. As Nigeria commences a new journey of agricultural transformation some of these concerns call for renewed attention. Nigeria would have no reason to import major food products if all the past lofty agricultural programs by successive governments had been implemented to the letter. Unfortunately these programs, just like the policies that created them, were inconsistent and short-lived. Yakubu Gowons administration introduced the National Accelerated Food Production Program (NAFPP) in 1972 and created the Nigerian Agricultural and Cooperative Bank (NACB) to fund agriculture. General Olusegun Obasanjo, as a military Head of State, abandoned this program when he came into power in 1975 and created a new program called Operation Feed the Nation (OFN). Shehu Shagari shelved OFN for his Green Revolution Program (GRP) in 1979 while General Muhammed Buhari introduced the Back to Land Program in 1983 to replace his predecessors GRP. In 1986, General Ibrahim Babangida established the Directorate of Food, Roads and Rural Infrastructure (DFRRI) while Olusegun Obasanjo, as an

Policy and Agricultural Development in Nigeria: Challenges and Prospects

elected president, introduced the Presidential Initiative in agriculture with a special emphasis on cassava. This constant change is one problem identified by analysts as an obstacle to progress in the agricultural sector in Nigeria. It seems to be the case that no matter how promising an existing agricultural program, successive governments find reasons to discard it and replace it with another. Agriculture in Nigeria has remained rudimentary and mostly in the hands of the resource poor in society. The returns in farming are marginal, while the social perception of a farmer is quite derogatory and unattractive for the younger generation. It is for this reason that the percentage of Nigerians engaged in agriculture has continued to decline since independence because of better opportunities created in the public and private sectors in the big cities. Average life expectancy is 47 years while the current average age of farmers in most communities is well over 50 years. This is a significant imbalance. It gives the assurance of a future food crisis in Nigeria unless corrective measures are immediately taken. The problem now is how to build a successor generation of farmers; this can only be achieved if farming becomes attractive to investors, scalable and profitable and with less drudgery. Today private investment in the agricultural value chain is at a low level because of perceived risks and uncertainties. Large and medium scale farms and agro-allied industries have failed for non-technical reasons. New investors are scared, as they cannot predict their production environment just as they cannot predict price and market demand. In these conditions, the finance institutions will continue to refuse to put money in this sector. It is important to note that agriculture is a business and it is subject to business principles. In this regard, agricultural programs and policies must be developed along business lines and the necessary environment must be created for them to succeed. They should be guided to ensure high output per unit area, at a competitive production cost and with unrestricted diversified market beyond targets set for achieving food security. Critics of the commercialization of agriculture in Nigeria have argued that national-level food security will deteriorate as farmers market their produce to the industrial or export sector. However, available data suggest that this will not happen. On the contrary, the global trend tends to indicate that countries that have achieved growth in agricultural exports are the most food secure. A recent case study is that of cassava production in Nigeria which increased by 40 percent, from 33 million tonnes in 2002 to 45 million tonnes in 2005, simply because farmers responded to the new market opportunities created by the Presidential Initiative in the flour sector. If the policy on the substitution of 10% cassava flour for wheat in bread had been sustained cassava production in Nigeria would have doubled by 2010. Appropriate policies for input supply, output marketing, and rural infrastructure will benefit both the food and cash crop sectors. Achieving sufficient food supply is indeed one part of the strategy to prevent hunger. Ensuring that the major staple foods are nutritious enough to meet micronutrient requirements for healthy living is of equal importance. According to the Vitamin and Mineral Damage Assessment Report (2004), 25% of Nigerian children are growing up with lower levels of immunity, leading to frequent ill health and poor growth from vitamin A deficiency. In addition to the human suffering it causes, micronutrient malnutrition, also known as Hidden Hunger has negative effects on labor productivity. It constrains an individuals long term capability to take advantage of economic opportunities. Unfortunately, the inter-relationships between agriculture and health have remained unrecognized or have been simply ignored in the past. Biofortification is a novel approach to

25th Farm Management Association of Nigeria (FAMAN) Conference

breed higher levels of micronutrients directly into the staple food crops eaten by the poor. It can be a very effective means of reducing malnutrition in rural areas, where over 75% of the poor live, and where access is limited to supplements, commercially marketed fortified foods or other urban-based interventions. In all of these, there are basic challenges that must be addressed if agriculture is to contribute meaningfully to Nigerias GDP, food security, public health, job creation and drives to alleviate poverty. In simple economics, a farmers net profit will be influenced by the following three important determinants - yield per unit area, price per unit product, and average cost of production. This presents a direction to agricultural scientists and development agencies concerned with positioning agriculture in Nigeria to achieve its potentials. What roles should farm management experts play? Sustain high crop yields: There is a wide gap between the expected and actual yields of most crops; and available data indicate that farmers harvest less than 25% of their expected yields. Consider the case of two farmers on adjoining farms. They have similar fixed assets, soils and yield potentials, yet one farmer consistently harvests higher yields than the other and enjoys higher profits. Most likely, the more profitable farmer has developed a more successful management strategy for the controllable crop production practices. A single practice or input is seldom responsible for high yield it is usually the proper management of several practices which explains yield gaps among farmers. What then are these Best Management Practices (BMPs) that ensure high crop yields and yet safeguard the environment? This is one of the bases for sustainable agriculture. Farm management experts should take the initiative to physically identify and document all controllable factors that affect yields for each of our major crops in Nigeria. The next step will be to identify the BMPs for high yield that best fit each of the major agroecologies, soil types and production scales. At gatherings of this nature with eminent scholars present there can be no better forum to review BMP strategies and to be flexible to make changes as yield goals change, as new varieties/hybrids are released, or as new BMPs are developed. This is what farmers are looking for. Sustain low production costs: There is also a wide gap between the actual and expected costs of producing crops in Nigeria. The major components of costs include labor, input, transport and services. Available data show that labor alone accounts for 50 - 80% of a farmers farm expenditure. This is so because labor is used at all stages in the production chain - from land clearing to soil tillage, planting, weed control, harvesting and even to transport farm produce. In cassava production, labor and input costs are computed to be in the range of 150,000 to 180,000 naira per hectare, if all charges apply. Now at 20 tons per hectare and at the current price of 7,000 naira per ton a farmers gross income is only 140,000 naira per hectare giving a negative return of 10,000 to 40,000 naira per hectare. The story will not be very different if we replace cassava with maize, sorghum, or yam in this case study. From this analysis the two most important agronomic determinants of profit are yield and production cost. Higher yields reduce unit costs because fixed costs, such as those for land and machinery, do not change with yield and are spread over more tonnes of yield. Unit cost of production is a farmers best single indicator of profit potential. As unit cost drops there is a built-in protection factor against a fall in market price or low yields due to weather and pests. There is therefore a well defined entry point for all research and development stakeholders in the agricultural sector to contribute to Nigerias agriculture.

Policy and Agricultural Development in Nigeria: Challenges and Prospects

AGRICULTURAL POLICY AND DEVELOPMENT IN NIGERIA CHALLENGES AND PROSPECTS Prof. Sunday Fasina Ekiti State University, Ado-Ekiti INTRODUCTION The major bottleneck to sustainable agriculture in Nigeria can conveniently be laid at the doorstep of policy inconsistency or policy summersault. Successive governments have at one time or the other made several spirited efforts of ensuring a self-sufficient, food-secured and buoyant economy through the formulation of appropriate policies and programmes. The first two National Development Plans (1962-68, 1970-1974) saw agriculture as a source of surplus through marketing board taxation to be used to finance development of the national economy (Idachaba 1972): The policy of the Federal Government Plan (1981-1985) was to move the country quickly to achieve self-sufficiency in food production and massive increase in the production of agricultural raw materials for domestic agro-based industries and for export. Frequent changes in the leadership of Agricultural establishments, Ministers, Permanent Secretaries, agricultural agencies and parastals etc have affected policy implementation and this has resulted to lack of continuity of programmes and projects. It was in view of this that this present paper intends to do a critical analysis/stocktaking of the past Agricultural Policies and Development in Nigeria with a view to identifying the major challenges and Prospects therein. POLICIES AND PROGRAMMES FOR THE DEVELOPMENT OF AGRICULTURE IN NIGERIA: 1970-2008 Four distinct agricultural and rural policy phases may be identified in Nigeria. 1st phase 1960-1969 (Pre 1970 era) 2nd phase 1970-1985 3rd phase 1986 (-SAP) Structural Adjustment Programme period to 1994. 4th phase Post SAP era to date Spanning 1995 2009 (a) PRE-1970 PERIOD 1. Characterized by minimum direct government intervention 2. Private sector and Small Scale resource poor farmers determined the direction of agricultural development efforts in the country. 3. Government in 1950s and 1060s, created public-owned Agric. Development Corporations, Commodity Boards and Launched a number of Farm Settlement Schemes. PRE SAP PERIOD (1970-1985) 1. Characterized by boom oil revenues and high levels of public expenditures by the Federal Government 2. Sector-specific agricultural policies were largely deigned to facilitate agricultural marketing, reduce agricultural production cost and enhance agricultural product prices as incentives for increased agricultural production. 3. Major policy instruments during this period included:-

b)

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(i) Agricultural Commodity Marketing and Pricing Policy Six national commodity boards were established in 1977. The boards were for cocoa, groundnut, palm produce, cotton, rubber and food chains. The board also operated a strategic grain reserve scheme. (ii) Input supply and Distribution Policy Government policy on input supply and distribution focused on instruments for ensuring that adequate and orderly supply of modern inputs like fertilizers, agro chemicals, seed and seedlings, machinery and equipment. Key policy instruments adopted were: 1. Centralization of fertilizer procurement and distribution (1978). 2. Creation of a national network of agro-service centers to facilitate distribution of modern inputs. 3. Creation of a National Seed Service (NSS) in 1972 to produce and to multiply improved seeds for rice, maize, cowpea, cassava but adoption rates remain low. 4. Agricultural input subsidy policy subsidized the prices of key inputs (agrochemicals, tractors). 5. Agricultural Mechanization Policy 6. Agricultural Cooperatives Policy developed to mobilize rural people for social and economic development through agricultural cooperatives. 7. Water Resources and Irrigation Policy 8. Establishment of eleven River Basin Development Authorities in 1977 with the overriding responsibility for the development of the countrys land and water resources. They had mandate for land preparation, development of irrigation facilities and construction of dams, boreholes and roads. 9. Agricultural Extension and Technology Transfer Policy. Through ADP (1972) Through NAFPP (1972) (c) SAP PERIOD (1986 1994) Main Policies put in place during this period included: Fiscal policies - A 5 year tax-free period for profits earned by companies engaged in Agricultural production ad agro-processing was provided. 1. Monetary Policies - Liberalization of terms for agricultural loan e.g. Small-Scale farmers could obtain loan up to N5,000 without any tangible collateral. 2. Deregulation of interest rates that increased banks lending rate to 15% but limited to 10-11% for Agric loans. 3. Extension of repayment period from 4-7 years of commercial banks loans for investors in long-gestation cash crops. 4. Establishment of Peoples Bank of Nigeria in October, 1989. 5. Establishment of Community Banks in 1990 that were charged with the responsibility Trade Policies 1. Abolition of Commodity Boards

Policy and Agricultural Development in Nigeria: Challenges and Prospects

2. 3. 4. 5.

Import levies Reduction of some excise and export duties Export promotion of non-oil goods, including agricultural commodities A ban was placed on the importation of rice, maize, wheat and barley.

(d) Agricultural Support Service Policies Water Resources and Irrigation: 1. Reorganization of the River Basin Development Authorities in 1986 to concentrate only on water resources management and land development 2. Fadama 1 (dry season farming) was launched in 1993. Employment Policy: 1. NDE was established in 1986 2. NAIC (National Agricultural Insurance Company in 1987. 3. NALDA (National Agricultural Land Development Authority) was established in 1991 to execute a national agricultural development programme for Small-Scale farmers organized on group basis. 4. Agricultural Training and Manpower Development: 5. Establishment of Faculty of Agriculture in Conventional Universities, Colleges of Agric. and three Universities of Agriculture. Rural Development Policy: 1. DFRRI was established in 1986. 2. Involved in construction of feeder roads, rural water supply electrification projects 3. NALDA was established in 1991 establishment of NALDA farms in nearly all States with 4Ha demarcated for each farmer involved in the Community based programme. (d) POST SAP PERIOD (1995 2000) Period characterized by substantial importation of agricultural products. In 2004, Government placed a ban on the importation of several agricultural food products in order to encourage local production. Some other policy instruments have evolved in the past 1999 phase They are listed below. 1999: 1999: 2000: 2001: 2003: Special Programme on Food Security (SPFS) Root and Tuber Expansion Programme (RTEP). Integrated Rural Development Strategy. Presidential initiatives on special crops (rice, vegetable oil and cassava). Fadama 11 programme 1st phase founded by the World Bank (12 States) 2nd phase founded by African Development Bank (Six States).

Subsequently, Fadama III programme has recently (2009) taken off in some selected States. The aim of the Fadama programmes is to use the banks of rivers and waterlogged areas for agricultural purposes, particularly so given the low proportion of irrigated areas in Nigeria put at only 7% of total cultivated available land and also because of problem of climate change. 2003: Cocoa Rebirth Programme.

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2004: 2004:

Covers 14 States that are cocoa producing National Economic Empowerment Development Strategies (NEEDs) Programme. New Agricultural Policy Agricultural biotechnology Agricultural development Fund Animal Vaccine production Veterinary drug manufacture Agrochemical manufacture Water management Adaptive technology

2006: National Fertilizer Policy for Nigeria 2007 2011 7 Points Agenda: Power & Energy Food Security Wealth creation Transport sector Land reform Security Education PRESENT CHARACTERISTICS OF NIGERIA AGRICULTURE 1. It is regarded largely as a way of life occupation rather than a multi faceted business. 2. Less than 50% of cultivable land is under cultivation because of manual operation. 3. Employ about 70% of the labour force but contributes 32% of the GDP (2005) and less than 7% of the nations foreign exchange earnings. 4. Dominated by small holders and aged farmers who use rudimentary and antiquated production techniques. 5. Total Farm mechanization not practiced even in government and large Commercial Farms. 6. Export commodities still exported in raw material form with no value added via processing. 7. Excessive post harvest losses because of inadequate storage and timely exit to markets and end users. 8. Input supply not under farmers control but under the control of politicians and middleman thereby increasing costs and delays to timely farm operations. 9. Bedevilled by inconsistent governmental policies 10. Consistently given low budgetary allocations to agriculture by government 11. Poor infrastructural support roads, railway, haulage, electricity etc 12. Most farmers do not specialize in what they produce. 13. Most children of farmers and graduates of agriculture are not attracted to Nigerias agriculture in its present state. 14. Cannot meet the FAO recommended level of food security (i.e. 20kg/person for 3 months) 15. Abound with plantation farms with over 50 yrs old cocoa, oil palm and rubber trees.

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Policy and Agricultural Development in Nigeria: Challenges and Prospects

ASSESSMENT OF THE NIGERIAN AGRICULTURAL POLICY (ANAP) A study was conducted by USAID/Nigeria mission, IITA, IFPRI (International Food Policy Research Institute) and University of Ibadan with the primary purpose to provide an analytical basis for USAID mission in Nigeria to design a new Agricultural Policy Strategy that can contributes to the unlocking constraints to commercialization and investment in the Nigerian agricultural sector for a sustained economic growth; enhanced food security and alleviate poverty. The key issue in the study was the identification of constraints to investment in the agricultural sector and the evolvement of strategies and priority areas for intervention by USAID/Nigeria, other donors, home governments and private sectors for the purpose of providing catalytic support for the flow of investment into the agricultural sector. The following findings came out from the study. Generally, there was a lack of consistency in the growth performance of the agricultural sector in the 1981 -2000 period, with some evidence of unstable or fluctuating trends, probably due to policy instability and inconsistencies in policies and policy implementation. Factors constraining agricultural performance in the country include those relating to technical constraints, resource constraints, socio-economic constraints and organizational constraints. A review of past government policies in agriculture shows that in the pre-structural adjustment period, sector-specific agricultural policies were designed to facilitate agricultural marketing, reduce agricultural production cost and enhance agricultural product prices as incentives for increased agricultural production. Constraints to agricultural policy effectiveness are identified to include those of policy instability, policy inconsistencies, and narrow base of policy formulation, poor policy implementation and weak institutional frame work for policy coordination. Agricultural commercialization calls for increased investment and capital formation for more intensive production. Agricultures share of total foreign net private investment was very low, being on the average, less than 4% in the entire 1981 2000 period. Thirteen (13) categories of constraints to investment in the Agriculture sector are identified viz: 1. Infrastructural constraints (bad or poor state of roads processing facilities and marketing outlets, epileptic power supply, poor state of telecommunication facilities etc.) 2. The causes and source of constraints were investigated for each constraint. For example poor credit policy coupled with ineffective policy implementation, high interest rate of interest and unstable exchange rate were the main causes of the persistence of financial constraints to investment in Agriculture. Poor leadership, political instability, poor governance, and non-participatory governance were sources of political constraints. An example of technical constraints is on inconsistencies in agricultural input policies that constrained producers, including small-scale farmers to acquire modern farm inputs. 3. There are 13 areas in which investors (foreign and domestic investors) are willing to put their money in attractive enterprises. These are: input production and supply

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enterprises, livestock production, fisheries, forestry and commodity processing and storage enterprises. Others are commodity marketing, agro industry manufacturing, agricultural commodity export, and agricultural support services. 4. The study also identified 32 commodities in which the Development Domains are perceived to have a comparative advantage in the domestic, regional, or world market. The identified commodities were grouped into five categories namely staple crops (9 commodities), industrial crops (12 Commodities), Livestock (5 commodities, fishery (3) and forestry (5).

FUNDERMENTAL CHALLENGES AND PROSPECTS FOR AGRIC POLICY AND DEVELOPMENT IN NIGERIA Some of the obstacles on the way to Agricultural Development in Nigeria include: 1. Inconsistence government policies and political instability: The NAFPP concept was a well articulated policy which was launched in 1974 with the aim of making Nigeria self-sufficient in six basic staple food crops maize, rice, millet, sorghum, wheat and cassava by using individual farmers to produce and multiply improved seeds for wider distribution to farmers for planting. The programme had great potential for increasing the yield of the six crops, as shown in Table 1. Unfortunately, in 1975 the NAFPP was de-emphasized to make room for the launching of another programme, operation feed the nation. Obviously, the main reason for de-emphasizing the NAFPP was the change in government. Table 1: Comparison of yields of NAFPP packages, practices, potential and local practices: Crop Local or current NAFPP yield Potential yield Expected yield (T/hectare) Increase Actual T/hectare Potential Yield t/ha Cassava 9.29 15.0 + 60% 28.4 Maize 1.3 2.8 + 115% 4.0 Rice 1.1 2.2 + 100% 7.0 Sorghum 0.65 1.5 + 130% 3.2 Millet 0.65 1.5 + 130% 2.4 Wheat 1.30 3.0 + 130% 2. Inadequacy of rainfed agriculture This can be addressed by providing more support for Fadama development and management. 3. Uncontrolled food importation including those with local substitutes. This can be addressed by not allowing food import to be a disincentive to local producers. Local food production needs to be encouraged by making inputs available, giving farmers access to more farm/land, providing microcredit at subsidized cost, supporting adequate processing and storage, providing market facilities, and discouraging import of produce with local substitutes through tariffs. 4. External Development Assistance should be pursued in view of meager financial allocations to the sector.

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Policy and Agricultural Development in Nigeria: Challenges and Prospects

AGRICULTURAL PROSPECTS 1. Land area of 98.3 million ha; 74 million ha is good for farming; but less than half is being explored. 2. Population involved in farming is 60-70%. 3. Agric. Contribution to GDP is also about 41.5%. 4. Crops, Iivestock and fish have potentials for providing food and nutrition. 5. Agriculture is a key sector that can affect majority of Nigerians. PARADOX Threat of hunger and poverty - 70% of the population live on less than N100 (US $ 0.7) per day Youth unemployment is high. - Smallholder farmers constitute 80% of all farm holdings; their production system is a regular shortfall in national domestic production. Food import is thus a common feature. KEY ISSUES ON NEW AGRICULTURAL POLICY FOR NIGERIA The major objectives of the new agricultural policy of Nigeria should address the following key issues: 1. achievement of food self sufficiency and food security 2. increased production of raw materials for industries 3. increased production and processing of export crops 4. generation of gainful employment 5. rational utilization of agricultural resources 6. promotion of increased application of agricultural technology 7. improvement in the quality of rural life. The key features of the new policy should include: 1. the evolution of strategies for achieving food self-sufficiency and improved technical and economic efficiency in food production. 2. Reduction of risks and uncertainties in agriculture 3. A unified national agricultural extension system under the ADPs. 4. Promotion of agro-allied industries 5. Provision of agricultural incentives The new agricultural policy direction should involve: 1. creating a conducive macro-environment for private sector investment in agriculture. 2. Rationalizing the roles of tiers of government and the private sector. 3. Reorganizing the institutional framework in the agricultural sector 4. Implementing integrated rural development programs 5. Increasing budgetary allocation to agriculture 6. Rectifying import tariff anomalies in respect of agricultural products The policy instruments should cover: 1. crops, livestock, fisheries and agro-forestry production 2. pest control 3. mechanization 4. water resources and irrigation 5. rural infrastructure

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6. 7. 8. 9. 10. 11. 12. 13.

agricultural extension and technology transfer research and development agricultural commodity storage, processing and marketing credit supply insurance agricultural cooperatives training and manpower development agricultural statistics and information management.

CONCLUDING REMARKS AND RECOMMENDATIONS The dilemma of Nigeria agriculture can best be described by what Jesus said in Luke 5:36-39. Our case is that of fitting new policies into shifting cultivation and small farm holdings instead of embracing mechanized agriculture. Americans have been able to successfully incorporate new labour saving machines and scientific innovations to revolutionize their agriculture. We must embrace total change psychologically in our perception and operation of agriculture in Nigeria. We must begin to desire new wine. Various policies and programmes were put in place with little or no impact. Some of the policies were adjudged to be inconsistent, and sometimes contradictory, were not grassroots based or were poorly implemented: Responsibilities have not been fashioned out among the three levels of governments in a manner that will bring about a by synergy to promote rapid agricultural transformation in the country. In order to overcome some of these problems of bad policy implementation, there is need to formulate ideas/policies that are workable in order to get out of the doldrums. Some of these ideas are discussed in form of recommendations below: RECOMMENDATIONS 1. Nigeria must legislate against abandonment of programmes and projects by governments. Project continuity will avoid waste of money and abortion of brilliant ideas needed to move agriculture forward in Nigeria. 2. There is need to put in place favourable legal framework, fiscal monetary trade and environmental policies that would favour agricultural Development in Nigeria. 3. There is need to establish a Commercial Agricultural Development Council (CADC) by State governments as being done by Federal Government in Nigeria. This will encourage State governments to generate supportive complimentary policies to attract investors at the grassroot level into agriculture. 4. Provision of Adequate and realistic subsidy for Agricultural inputs. - There is no country in the world where agriculture is successful and the people well fed, without subsidies in agriculture. The Federal Government should stop listening to IMF and World Bank that agricultural subsidies should be removed. The Federal Government of Nigeria should view the provision of subsidies in agriculture as part of social services to the people because provision of food is more or less a social welfare. Government should use its enormous legislative and executive powers to curb abuses associated with agricultural subsidies. 5. Research and Training in Agriculture: - There is need for informal training in this sector to complement the existing formal training in Universities and Faculties of agriculture in Nigeria.

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Policy and Agricultural Development in Nigeria: Challenges and Prospects

6. Government and organized private sector should institute programmes that will empower the existing farmers on how to improve their current levels of production and productivity. This will also help to train seasoned farm managers. 7. The Lagos State AGRIC Youth EMPOWERMENT Scheme (Agric. YES) is very commendable and should be replicated in other States of Nigeria. 8. Research - There is need for increased funding for research in Agriculture. There is need to allow outputs of research get to farmers through proper and adequate extension linkages. 9. Participation of the private sector in agriculture: - Government must create an enabling policy environment for Private Sector to operate in Agriculture e.g. reduction of tax, use of economic instruments to attract investors into Agriculture. Private Sector should also be interested in areas such as crop and commodity preservation, storage and distribution, input production and marketing, processing of local staples, seed production and multiplication.

Distinguished ladies and gentlemen, I thank you all for listening. REFERENCES Ekong, E.E. (2010) Repositioning Nigerias Agriculture for 21st Century and beyond. Distinguished Animal Lecture Series presented at Osun State University, Osogbo, Osun State PP 34 FAO (2009): The state of Food insecurity in the world. Food and Agriculture Organization (FAO). Rome. Lucas, E.O. (2007) Too much food for thought, But very little for the Table Inaugural Lecture presented at University of Ibadan PP 60. Okuneye, P.A. (2010): Achieving Agricultural Self-Sufficiency in Nigeria Linking Promises to Realistic Policies 2nd Distinguished Lecture presented at AFE Babalola University, Ado-Ekiti (ABUAD) PP 55.

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25th Farm Management Association of Nigeria (FAMAN) Conference

ADDRESS BY HONOURABLE COMMISSIONER FOR AGRICULTURE AND RURAL DEVELOPMENT, EKITI STATE, DR. ADIO FOLAYAN AT THE 25TH ANNUAL CONFERENCE OF FARM MANAGEMENT ASSOCIATION OF NIGERIA (FAMAN AKURE 2011) ON 6TH SEPTEMBER, 2011. Protocols I am most delighted to address you all today as a special guest of honour at the 25th Annual Conference of your Association, the Farm Management Association of Nigeria (FAMAN). First and foremost, let me congratulate the Federal College of Agriculture, Akure for hosting this years conference. The choice of the College as the host, is not only an honour for the College but also a bold statement of appreciation of the enormous training facilities and resources of the institution. I equally congratulate the association on this occasion. It is of course a mark of seriousness that you have been able to sustain the holding of your conference for a quarter of a century. I hope you will certainly keep up this commitment. Let me hasten to say that, the choice of Policy and Agricultural Development in Nigeria: Challenges and Prospects as the theme of this years conference is very germane. This is because since Nigeria emerged as a sovereign state, government at different levels have enunciated numerous policies aimed at promoting agricultural development. However, the impacts of these policies on agricultural development have been mixed. While some of the policies have yielded good or positive outcomes, a good number of them have of course failed. I am confident to say this because as a practicing farmer, an academic and of recent a policy-maker, I have seen it all. Of all the challenges facing policy-making in Nigeria, policy inconsistency or somersault remains the major intractable one. In any case, as you confer on this occasion, I believe you will engage and interrogate this and other policy challenges and come up with realistic positions which can promote agricultural development in Nigeria. With the advent of oil, little attention has been paid to agriculture in this country. But because oil is not inexhaustible, we must evolve policy strategies which will re-direct our focus on agriculture. With greater commitment to agriculture, the current suffocating level of unemployment will not only reduce but the much desired food security will also be better guaranteed. Above all the agricultural sector will thus assume its prime place in our national economy. With this, we have no cause to worry or panic if we should exhaust our oil at any moment. Distinguished participants, at this years gathering, you must therefore interrogate the following hanging specific questions: What agricultural policies exist? What have been their impacts? What are the policy implementation challenges in the country? What are the available alternative policies which can hasten or boost agricultural development? The answers to these questions will go a long way in promoting agricultural development and enhancing the image of your association as a credible body or think-thank. Distinguished ladies and gentlemen, let me thank you for the honour you have done me and the Federal College of Agriculture, Akure, an institution I have a special emotional attachment. Because of my special attachment to the College, let me join the Provost of the College in welcoming you to the College and to Ondo State, the sun shine state whose watchword is: Ise takuntakun (Devotion to duty). I hope you will all in the spirit of that

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Policy and Agricultural Development in Nigeria: Challenges and Prospects

watchword or slogan, devote your time and energies to this conference. As you all travel back to your different destinations at the end of this conference, I wish you all safe journey. Finally, I wish you all a very successful conference. Thank you. Dr. AdioAfolayan Honourable Commissioner for Agriculture and Rural Development, Ekiti State

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25th Farm Management Association of Nigeria (FAMAN) Conference

FAMAN
ONDO STATE AGRICULTURAL DEVLOEPMNT PROGRAMME

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