Agric Sector Capable Of More Growth If…

The agricultural sector has been rated as capable of driving the nation’s economy provided the right mechanism, strategies and policies are put in place, stakeholders have said.

This was the position of stakeholders as they reacted in separate interviews to the latest Gross Domestic Product (GDP) Report published by the National Bureau of Statistics (NBS) in the first quarter of this year.

According to the report, agriculture sector grew at 3.17 per cent in real term from the 2.46 per cent it recorded in the last quarter of 2018.

The stakeholders want the country to deepen effort to improve on the marginal growth in the sector.

The report revealed that the sector grew by 22.58 per cent Year-on- Year in nominal terms in Q1 2019, showing an increase of 16.78 per cent points from the same quarter of 2018. Compared to the preceding quarter, the nominal GDP growth rate was about 4 per cent points higher.

The NBS report further showed that crop production remains the major driver of the sector as it accounted for 85 per cent of agriculture GDP.

“Quarter on quarter, growth stood at -25.27 per cent. Agriculture contributed 19.11 per cent to nominal GDP during the quarter, higher than the recorded contribution in the first quarter of 2018 but lower than recorded in the fourth quarter”.

Also, in real terms, the agricultural sector grew by 3.17 per cent (Year-on-Year) in the first quarter of 2019, an increase of 0.17 per cent points compared to the corresponding quarter of 2018, and 0.72 per cent points compared to the preceding quarter.

The report further stated that crop production grew by 3.27 per cent in the quarter under review from 2.48 per cent in Q4 2018 and 1.87 per cent in Q3 2018, while livestock grew by 0.88 per cent this quarter from 2.35 per cent in Q4 2018 and 2.56 per cent in Q3 2018.

Also, forestry grew by 2.19 per cent in Q1 2019 from 1.73 per cent in Q4 2018 and 3.72 per cent in Q3 2018 and fishing grew by 7.09 per cent in Q1 2019 from 1.97 per cent in Q4 2018 and 0.84 per cent in Q3 2018.

Adeola Elliott, a former Chairman Lagos Chambers of Commerce and Industry (LCCI) Agric and Agro Allied Group in his analysis, noted that the growth was a pointer to the huge potentials of agriculture, adding and that it was heartwarming for the sector to record such success.

He said that the development should propel its policy on funding the subsistence the issue of collateral needs a major review.

“The state and local government must collaborate with the Central Bank of Nigeria to provide for the farmers. They should also initiate tractor scheme that will make this critical equipment available for bush clearing.

“The critical step envisaged now is for government to go all out to initiate robust agriculture schemes that support agriculture value chain in its entirety. The Minister of Agriculture and Rural Development has been very creative. He should double his efforts and consider the subsistent farmers in his calculations.

“If more small farm holders are brought into the net of proper funding and benefitting from series of the Ministry’s interventions, which propel the state and local government to become major stakeholders, it is certain that agriculture will be primed to hit its potentials in no distant time,” he added.

Wale Oyekoya, an agribusiness strategist, noted that the 3.17 per cent growth on yearly basis is significant and could even be more than that if the government carried along the major stakeholders in the sector and also put in the right mechanism strategies, policies in place.

He added that the Central Bank of Nigeria (CBN) should make soft loans available to farmers at a very minimal interest rate through her commercial and microfinance banks.

Oyekoya further stated that the Federal Government should provide more agricultural funding to universities offering agricultural trainings to conduct researched on all areas of that will in the end lead to more export and local consumption.

He stresicultural production in the international market.

“Crop production which grew at 3.27 per cent can skyrocket between 15 and 30 per cent if the right policies are in place like state government investing heavily in mechanized crop productions, especially by involving the teaming youth and also facilitating workshops, seminars and even establishing state university that will focus mainly on agriculture.

“This will boost the GDP and it will reflect in the markets and the positive impact will be felt. If research institutes like; Cocoa Research Institute of Nigeria (CRIN), International Institute of Tropical Agriculture (IITA) and others are well equipped and purposely driven will help in reducing crop diseases which will, in turn, boost the farm produce and increase GDP.

“Livestock which grew at 0.88 per cent could also be a major boost in the agricultural sector if the rate of cattle rustling majorly in North East and North West can be brought to barest minimal, in addition to security improvement across the country,” he said.

Speaking further, he said that if proper diversification of the economy is sincerely promoted, the better for the country.

“Our undue over-dependence on the so-called oil sector has greatly failed the economy of Nigeria. So disappointing that, even the crude oil sector contributed insignificantly to the real GDP and the non-oil sector carries the bulk of the increased.

“As a nation, we should by now see the opportunities yet untapped in the agricultural sector going by the trend of the contributions of the sector over the years to the nations GDP when compared to the oil sector and others alike,” he added.

He, however, said that if farm products are now produced and packaged into finished products like tomatoes into pastes, maize to cornflakes, cocoa to chocolate and beverages and also increase production agricultural for exportation, it would lower importation and have great impact on the nation’s foreign exchange and also boost the GDP from the agric sector.

Emeka Okereke, Director General, Enugu Chambers of Commerce Industry, Mines and Agriculture (ECCIMA), stated that it was a welcome development but emphasised the country needs to deepen effort to improve on the marginal growth in the agricultural sector.

“I think that the government needs to be commended in this direction.

Okereke further stated that more farm input has to be made available to farmers, including seedlings and equipment as well as soft financial facilities.

He advocated that smallholder farmers should be encouraged and that the challenges posed by farm destruction by invaders must be arrested as a matter of critical urgency.

Nurudeen Tiamiyu National Vice President, Tilapia Aquaculture Developers Association of Nigeria (TADAN) however queried the growth recorded in the fishing subsector stressing that this present government keeps cooking figures up.

“I don’t know where they got the growth of fisheries to 7.09 per cent. This government keeps cooking figures up. No one talks to the umbrella bodies of the fish farmers. Maybe they are talking about captured fisheries but aquaculture is not growing at that rate.

“The problem with livestock in terms of high cost of production is happening to us. Our members are reducing production and some are going out. All you need to investigate is talk to animal feed sellers, especially the fish feed sellers let them tell you how sales have reduced over the last two years to understand how the aquaculture industry has suffered; not talking to the Indians or foreigners producing feed here who give fake figures to government.

He added “the two biggest foreign companies in Aquaculture have reduced staff and production and having issues with increased sales.