Economy
Amid the current insufficiency of oil revenue for national development, a groundswell of agitations for the revival of the nation’s major agricultural produce has continued to gain traction as Nigeria celebrates its 62nd independence anniversary, writes Festus Akanbi
Nigeria indeed has a very rich history in agriculture, which is arguably one of the oldest practices of most human societies.
Throughout the colonial period, agriculture was the mainstay of the Nigerian economy and analysts said Nigeria’s initial claim to fame was its leading role in the cultivation of different cash crops. The list includes cocoa, groundnut, timber, rubber, palm oil and cotton, among others.
For many years, it was the mainstay of the nation’s economy, especially during the closing years of colonial rule and the early years following independence in 1960.
Before the discovery of oil, which eventually relegated agriculture to the background, various sections of the country were identified with particular cash crops. However, as the country celebrates its 62nd independence, calls for the diversification of the nation’s economy have resonated, as economic affairs commentators warned that unless Nigerians return to the farm, the current economic problems will not abate although farming is becoming risky in Nigeria as a result of the upsurge in insecurity.
Rubber as a Veritable Revenue Stream
One of the crops with a promising revenue stream is rubber. Analysts said the vast potential of rubber for economic sustainability especially in the areas of job creation and foreign exchange accruals to the country cannot be over-emphasised. Before the discovery of oil, the sector played a major role in stimulating non-oil exports as well as providing raw materials for agro-based industries. It also attracted a lot of foreign investors who have now left the country, leaving many unemployed.
Farmers complained of the inability to replenish old plantations and establish new ones. Farmers had also blamed the dwindling fortunes of the commodity on lower yield in plantations and the dwindling supply of rubber from rubber trees.
In 2019, rubber farmers complained that rubber was not listed as a beneficiary of the government’s intervention through the Bankers’ Committee which provided loan facilities to boost the production of five crops particularly cocoa, palm oil, sesame seeds, cashew and shea butter- all of which had qualified for a single digit interest loan of nine per cent with a moratorium of 10 years for the five crops listed with the exclusion of rubber.
This omission took place even though rubber produced in Edo, Delta, Cross River, Akwa Ibom, Imo, Rivers, Ondo and Abia states provided employment opportunities to over 5,000 workers across these states.
The use of rubber is almost invaluable, and evidenced in virtually every aspect of human endeavour, especially in the automobile sub-sector, providing the critical ingredients for the production of automobile tyres, dashboards, engine parts, seals and paddings and a variety of other parts.
Given the potential of the rubber industry and the number of job opportunities and economic prosperity being lost, stakeholders have recently intensified efforts to draw the attention of the federal government to the industry.
Funding remains a challenge as stakeholders believe the commodity should also benefit from the Central Bank of Nigeria (CBN)’s Anchor Borrower Programme (ABP).
Bringing Back Oil Palm Plantation
Whenever the story of Nigeria’s post-independence period is relayed, it usually evokes a deep sense of nostalgia especially when the narratives are laced with copious examples of ambitious policies of the administration that took over from the colonial government.
Incidentally, part of that story is the narrative about the growth of the oil palm industry, where Nigeria competed favourably with countries like Malaysia and Indonesia, in the export of palm oil, the most produced, consumed, and traded edible oil in the world.
In the late 1950s and early 1960s, Nigeria was the world’s largest palm oil producer with a global market share of 43 per cent.
The country soon abandoned palm oil production when it discovered crude oil in commercial quantity. Today, it produces just 1.4 million metric tonnes of palm oil, a dismal fraction of Indonesia’s 44.5 million metric tonnes as of 2021.
While, Malaysia’s palm oil production from 2015 to 2020 respectively included 17,700,000 metric tonnes (MTs); 18,858,000MTs; 19,683,000MTs; 20,800,000MTs; 19,255,000MTs and 17,854,000MTs, Nigeria’s production from same period, according to Oil World, are 940,000MTs; 960,000MTs; 1,040,000MTs; 1,130,000MTs; 1,220,000MTs and 1,280,000MTs respectively.
Meanwhile, Nigeria’s oil palm consumption from 2015 to 2020 were 2,517,000 metric tonnes; 2,480,000MTs; 2,490,000MTs; 2,523,000MTs; 2,573,000MTs and 2,591,000MTs.
Nigeria is now a net importer of palm oil; it consumed two million metric tonnes in 2021, leaving a deficit of 0.6 metric tonnes, according to the United States Department of Agriculture (USDA). Between 2012 and 2021, Nigeria imported over 4.1 million metric tonnes of palm oil, the USDA data showed.
While records showed that from 1975 to 2009, Nigeria was the second-largest recipient of World Bank funding for palm oil investments with six projects, only one project survived. Efforts by successive governments to revitalise the sector have been unsuccessful.
Return of Kano Groundnut Pyramids
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. In the 1960s and 70s, as production in Nigeria shifted from agriculture to oil, the groundnut pyramids disappeared. Recently, the Nigerian government has made efforts to revive the groundnut industry and rebuild the pyramids.
Going down memory lane, the Deputy Director, Training, Centre for Dry Land Agriculture, Bayero University, Kano, Professor Sanusi Gaya Muhammad in a recent interview, recalled that during the colonial era, Europeans, particularly the Britons who ruled the country, helped in evacuating the excess groundnuts produced in Kano to the United Kingdom (UK) for processing.
He admitted that the government have made efforts to ensure the revival of groundnut farming in Kano but said much of the efforts are coming from groundnut farmers. “From the look of things, we are coming back to where we left it. Now we are very lucky that new improved varieties are coming on board. There are several types with the Institute of Agricultural Research, Samaru, to which I also belong.
“Currently, there are six varieties. We also have other highly potential varieties on the shelves, and if we organize ourselves very well, these varieties will be getting to farmers on time. We hope that they are going to improve groundnut production tremendously.”
The Professor said support from the government is insignificant. “Honestly, there is very little incentive from the government. What the farmers need now is a sustainable supply of quality seeds. And then a sustainable supply of fertiliser, especially SSP, Single Super, which is the fertiliser generally used. So, there is a need for the government at all levels to come up with a clear-cut system, which ensures that quality and affordable fertiliser reaches farmers at the right time and the right price. These are the major things we need.
Then if a farmer produces, he should be assured of a good price. It should not be ideal for a farmer to produce and when he sells he doesn’t realise anything,” he stated.
