Fund agric to boost food security —Experts
BY Francis Akinnodi
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With Nigeria’s population set to reach 400 million by 2050, unlocking credit for the country’s small holder farmers currently contributing almost 30 per cent of Nigeria’s Gross Domestic Product (GDP) is the game-changer set to ensure Nigeria’s future food security.
Economic analysts who spoke with The Hope noted that more credit to the agricultural sector would also expand employment and broaden economic inclusion.
An economist, Dr. Timothy Awe said, “Leveraging credit through public-private partnerships would also ensure that the country’s farmers are able to access new technologies and build the cold-chain, distribution and export infrastructure necessary to ensure that agriculture contributes a much larger share of national revenue and foreign exchange earnings.
“Access to finance, however, remains a challenge for the agriculture sector. Although there have been laudable interventions by the Central Bank of Nigeria and the Federal Government, the sector needs more investment and farmers more credit.
“With agricultural credit currently accounting for only 5.2 per cent of total private sector credit, there is huge need for financial institutions to diversify products and services for players across the agricultural value chain if Nigeria is to boost profitability and increase income from the sector,” he said.
An Agriculturist, Gbenga Obaweya said, “Nigeria must resolve bottlenecks in credit and investment and unlock the huge potential for growth, earnings and employment presented by Nigeria’s agricultural sector. It is critical that the private sector, especially banks, work closely with Nigeria’s legislators and government departments.
“Building a sustainable public-private partnership able to transform the agriculture sector and ensure long term food security is a national imperative. This would also diversify the country’s economy, increase foreign exchange revenue, boost overall GDP growth and promote social stability by including more Nigerians in the economy.
“In Nigeria the federal government has been proactive with import substitution. The Anchor Borrowers’ Programme (ABP), designed to create economic linkages between smallholder farmers and agricultural processors and food producers, has been reasonably successful.
“Adequate loans to smallholder farmers would boost agricultural production, create jobs and reduce food importing bills.”, he said.