FG to review guidelines for ₦200 billion agric fund

The Federal Government plans to review the guidelines for the disbursement of the ₦200 billion Agricultural Development Fund. The review of the guidelines became necessary following various complaints by farmers and banks over unfavourable terms.

Specifically, farmers complained about the ratio of allocation at 60:40 between the commercial and small scale farmers.

Criticisms of guidelines

The small scale farmers argue that the larger percentage of the fund should have been in their favour since they make up the majority of the farming population.

Also contentious is the issue of the number of banks involved in the scheme. The Central Bank of Nigeria (CBN) chose only two of the 24 commercial banks operating in the country,First Bank and UBA, as the administrators of the fund. This made other banks to demand the criteria for choosing the two and excluding them.

Abdullahi Adamu, the acting president of the All Farmers Association of Nigeria (AFAN), speaking at an executive meeting of the association on Tuesday in Abuja, said a review would make it possible for government to respond to the challenges facing the disbursement of the fund.

"Farmers have complained that the percentage of the funds reserved for small scale agricultural farmers are too small compared to their output in achieving national food security," Mr. Adamu said.

Moses Ayinmodu, the national president, Nigeria Cassava Growers Association, on his part, argued that about 75 percent of the funds should be given to small scale farmers to encourage them. "Peasant farmers have been identified as the driver of the economy and those that feed the nation and the bulk of the funds should be given to them to improve their lot and achieve our food security target," he said.

Mr. Adamu said AFAN had earlier cautioned the government against the allocation granted commercial and small scale farmers, saying, "The formula of 60 percent to large-scale commercial farmers and 40 percent to peasant farmers adopted by government for sharing the fund was biased."

Banks and disbursement

Banks left out in the disbursement of the fund have called for the inclusion of more banks in the administration of the fund.

The CBN has said that ₦100 billion of the fund is ready to be disbursed to farmers, with UBA being in charge of 75 percent or ₦75 billion and First Bank ₦25 billion.

However, neither of the two banks has commenced the disbursement in view of the review of the guidelines and request to include more banks in the scheme.

Consequently, Mr. Adamu has urged government to speed up the process for accessing the fund to enable members of the association make judicious use of the money. "The government should put in mind the fact that we are already approaching the middle of the raining season," he said.

Donor agency

Meanwhile, a Non-Government Organisation, Oxfam International, on Tuesday called on African leaders to increase their investment in agriculture to battle the looming food crisis in Africa.

Lamine Ndiaye, head of Oxfam's Economic and Justice desk, said at a news conference in Sitre, Libya, that African leaders must take urgent and radical steps to reform their agricultural policies to empower farmers to produce more.

"One out of three Africans is now affected by food crisis, and investing in agriculture is part of the long term solution to the food, financial and climate crisis facing the continent. African leaders must invest more in small scale agricultural scheme for higher production, to break the current dependence on imports.

"Small scale agriculture is the backbone of African development, yet for decades, our governments and the international community have neglected and under-invested in agriculture and rural development. Many farmers work in harsh and remote environments, with inadequate access to markets and basic services such as water, healthcare and education," he said.

Mr. Ndiaye noted that although there was a huge return on agricultural investments, African leaders on the average invested only about 4.5 percent of their annual budget in the sector against the 10 percent benchmark prescribed by the African Union for agriculture development.