New Telegraph

ABP: Rice pyramids as validation of CBN’s success story

Last week’s announcement by the Central Bank of Nigeria (CBN), that it had introduced special bills to the financial system, is yet another policy measure by the apex bank to ensure financial stability and economic growth in the country, writes TONY CHUKWUNYEM

 

The display of huge rice pyramids during the national flag-off of the 2020/2021 dry season rice farming in Minna, Niger State last week is convincing evidence that the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ Programme (ABP) is boosting the country’s food crop production, writes Tony Chukwunyem.

 

Nigeria has been heavily dependent on crude oil export for so long now, that there will probably be some members of the younger generation, around these parts, who will find it difficult to believe that before the oil boom days of the 1970s, the country was a large producer of agricultural commodities.

 

However, there is no doubt that such skeptics will immediately change their minds if they have the opportunity of watching TV documentaries about, or seeing pictures of the world famous “Groundnut

 

pyramids” that put cities such as Kano on the world map when Nigeria was still a British colony.

Groundnut pyramids

According to Wikipedia: “Groundnut pyramids were pyramid-like structures made from groundnut sacks. The pyramids were built in northern Nigeria in cities such as Kano, where groundnut production was a key part of the economy. They were viewed as both a tourist attraction and a symbol of wealth.

One groundnut pyramid could be made from as much as 15,000 full groundnut bags. The pyramids became synonymous with Nigeria’s agriculture wealth; a postage stamp even featured a groundnut pyramid. However, as groundnut production declined in the 1970s and 80s the groundnut pyramids disappeared and were replaced with buildings

The online encyclopedia also noted that on February 24, 2014, Nigeria’s then Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, launched a groundnut value chain project that was aimed at increasing the country’s groundnut production and rebuilding the groundnut pyramids.

True, the groundnut pyramids may not have been rebuilt yet, however, there are indications that Nigeria will soon have an even more impressive tourist attraction in the agricultural sector-rice pyramids.

2020/2021 dry season rice  farming flag-off

For instance, four massive rice pyramids were strategically displayed during the national flag-off of the 2020/2021 dry season rice farming and loan recovery drive in Minna, Niger State last Thursday, which was jointly organised by the CBN and Rice Farmers Association of Nigeria (RIFAN).

In his remarks at the event, CBN Governor, Mr. Godwin Emefiele, who was represented by the Deputy Governor, Corporate Services, at the apex bank, Mr. Edward Adamu, attributed the impressive strides that the country has made in the production of rice and other agricultural crops in recent years to the regulator’s Anchor Borrowers’ Programme (ABP), which, according to him, has proven to be a game-changer in the financing of smallholder farmers in the country.

 

He said the programme had revolutionised agricultural credit financing and remained the fulcrum of transformation initiatives in the sector.

 

Emefiele pointed out that apart from being a tool for economic empowerment, job creation, and wealth redistribution, the ABP had also galvanised financial inclusion in rural communities.

 

He noted that since the launch of the ABP by President Muhammadu Buhari in 2015, rice has remained the focal crop under the programme given its crucial role in the diet of average Nigerians.

 

He stressed that with a population of about 200 million, importation of any major food item would continually drain Nigeria’ external reserves, export jobs to countries where these food items are produced and distort the commodity value chains as the nation will not be able to guarantee the supply of raw materials for its agro-allied companies.

The CBN governor also said that through the use of technology to boost productivity, the regulator intended to work with farmers to achieve one million hectarage cultivation during the 2020 dry season, from 500,000 hectarage, in the previous farming year.

According to him, with the deployment of technology, which covers farmers’ enumeration, biometric capture and GPS mapping of farms, all embedded to enhance the operational efficiency of the ABP, the 2018 wet season witnessed a geometric rise in beneficiaries adding that about 275,000 farmers were empowered to cultivate 220,000 hectares across all the 36 States of the Federation and FCT.

 

Noting that loan recovery is the hallmark of any credit process, he said that the combination of input distribution and loan recovery drive further demonstrated that the ABP remained a sustainable credit programme towards transforming the agricultural sector.

 

He disclosed that apart from rice, the Commodity Association Window of the ABP had been expanded to cover more commodities including maize, cassava, sorghum, soya bean, ginger among others.

 

Emefiele said: “We are hopeful that all these efforts will contribute to our national aggregates and galvanize our drive to economic diversification.

 

“Despite the devastation caused by numerous floods in the 2018 wet season, farmers have been submitting produce and cash as part of their loan repayment but we need the association to intensify efforts in this regard in the spirit of the partnership and sustainability of the programme for the transformation of the sector.”

The CBN governor noted that the partnership with RIFAN under the Commodity Association Window of the ABP was a flag-ship programme to explore the potentials inherent in agricultural commodity associations and position them strategically as drivers of enhanced agricultural productivity in the country.

He said linking the divisions to the innovative financing model under the ABP delivered quality inputs and mechanisation services to farmers at a competitive price and the right time.

 

He disclosed that from a modest pilot of 75,000 farmers in 26 states, the RIFAN-CBN ABP had now been fully established in all states of the federation including the FCT.

 

In his remarks, RIFAN President, Mr. Aminu Goronyo, commended CBN for its continued support for farmers. He stressed that contrary to the argument of some analysts, that Nigeria does not produce sufficient rice, the country currently has enough to eat and export to other African countries.

 

“They say there is no rice in Nigeria but we that are farming know there’s rice, enough rice in Nigeria and more than enough to export to other African countries. That is why we portray the Egyptian and Nigerian rice pyramids for all to see. The paddy that you see here is just a fraction of what we cultivated in Niger State,” he stated.

 

He said the success story in rice production is currently replicated across different parts of the country.

 

Buhari’s endorsement

 

In fact, the decision of organisers to showcase four pyramids of 45,000 bags of locally produced rice at the Agricultural Fair of the 2020 edition of the Argungu International Fishing and Cultural Festival, held in March, attracted the commendation of President Muhammadu Buhari, who declared the event open.

 

The president said that the agric fair was another evidence of the Kebbi State Government’s responsiveness to the set agenda of the Federal Government of becoming not only productive but also self-sufficient in the agricultural value chain industry.

Buhari noted that his government focused on food security by investing in programmes that will stimulate more interest in agriculture, improve the system of farming, highlighting some of the achievements since 2015 to include the return of paddy pyramids and multi-billion naira rice mills.

He said: “For our farmers, fishing communities, those in the livestock sector and agro entrepreneurs, you have truly made me proud. We shall continue to support you all with access to credit, adequate inputs, access to markets and policies that will promote and support your competitiveness.’’

 

“Furthermore, you will all recall that our food security program started here in Kebbi back in 2015. The many products displayed here are also proof of the progress we have made as a nation in feeding ourselves. The farming, fishing, and pastoral communities truly embraced our programmes and have proven that we can produce what we need.

 

“We established the National Food Security Council, which I Chair, supported by the Governor of this State, Senator Abubakar Bagudu, to ensure that all our successes to date are continuously improved upon.”

 

Analysts point out that although the CBN under Emefiele’s leadership had introduced several initiatives aimed at boosting the country’s agricultural sector, the ABP is clearly making the most impact.

 

Launched by President Buhari on November 17, 2015, the programme is designed to create a linkage between anchor companies involved in the processing and small holder farmers of the required key agricultural commodities.

 

CBN reports indicate that the ABP has added over six million metric tonnes to rice supply in the country and created millions of direct and indirect jobs. For instance, data from RIFAN shows that about two million direct jobs are created in a cropping season.

Conclusion

However, analysts also note that while the ABP is clearly boosting Nigeria’s quest for self-sufficiency in rice production, it is also obvious that achieving this objective would not only come about through massive cultivation of the staple, but on how the country is able to efficiently police her porous borders, to block smuggled rice from getting in through neighbouring countries.

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