ACIOE Webinar Agricultural Supply Chain Situational Analysis Post Pandemic Recovery
On Thursday, the 11th of June, ACIOE Associates in partnership with the Nigeria American Chamber of Commerce and the International Food Policy and Research Institute kicked off its first webinar series on Agricultural Supply Chain Situational Analysis Post Pandemic Recovery; National Preparedness and the Role of the Private Sector. The webinar had two main segments, the first segment was a set of presentations, and the second segment, a panel discussion.
Please see below the highlights from all presentations. 1. Introduction by ACIOE Associates- Mr. Chirnan Barde (Agribusiness Coordinator, ACIOE Associates) 2. Setting the tone by Nigerian American Chamber of Commerce (NACC)- Mr. Matthew Obogbaimhe. 3. International Food Policy Research Institute (IFPRI) – Dr. Andam Kwaw 4. Panel Discussion. 5. Q&A session: Moderated by Dr. Manzo Maigari (D.G Nigeria Agribusiness Group) 6. Wrap up and Closing remarks -Mr. Ekenem Isichei (Managing Partner, ACIOE Associates)
International Food Policy and Research Institute The purpose of this presentation was to provide background and data for the panel discussions during the webinar. It presented findings from a situational analysis carried out by the International Food Policy and Research Institute under the Feed the Future Initiative. Please see below key findings from their research ▪ National GDP fell by 38% during 5-week lockdown (US$18 billion. in lost GDP) ▪ Food system adversely affected by falling consumer & export demand (18% agri-food GDP decline, despite exemptions) ▪ The national poverty rate increased by 15%-points during the lockdown (30 million more people temporarily living below the US$1.90-a-day poverty line)
Kebbi State Presentation The Kebbi State governor indicated that Kebbi state has increased its budgetary provisions for agriculture to 10%. The state has also adopted the value chain approach in its programming for agriculture and at the same time strengthening the supply of genuine agriculture inputs.
Key Reforms ▪ The state government has developed interventions around financial inclusion. ▪ The state government has engaged the Institute of Agricultural Research to provide seeds, capacity building to technical staff and farmers. ▪ The state is transitioning from traditional production to industrialization. ▪ The state government is strengthening its agricultural mechanization process.
Challenges in Kebbi state due to COVID-19 ▪ Exhaustion, utilization of seeds and planting material. ▪ Difficulty in accessing other production inputs. ▪ Increase in the number of inactive farmers. ▪ Marketing/movement of produce from out-growers hampered. ▪ Outgrower production stalled. ▪ Rice production affected. ▪ Shortage of paddy to millers.
Kebbi state Supply Chain Recovery Plan ▪ Provision of improved seeds. ▪ Pest control/management. ▪ Commission tomato production factory. ▪ Engage out-grower scheme in tomato production ▪ Expand cassava production farms to 3675 hectares. ▪ Establish ethanol plant and commence production of ethanol. ▪ Support out-growers with improved cassava cuttings and other inputs. ▪ Government to support private window participation in the CBN Anchor Borrowers Programme (ABP). ▪ Provide support to increase rice yield from an average of 5 tonnes per hectare to between 9 & 10 tonnes per hectare.
Central Bank of Nigeria- Dr. Chinedu Zephaniah The Central Bank of Nigeria has a mandate of ensuring monetary & price stability. The Bank has created several interventions designed to simulate economic recovery from COVID-19 in the agricultural sector through an array of targeted developmental and monetary policies including; ▪ Interest on CBN loans have been reduced to 5% from 9% ▪ LDR policy has been targeted at boosting the agricultural and real sectors. ▪ N3.5 trillion has been set aside as a stimulus package to address critical sectors. ▪ Target Credit Facility (TCF) for COVID-19 recovery efforts, has disbursed N22.1 billion to date (Out of N50 billion budgeted) to 26,872 households, and 5892 SME’s. ▪ Over N300 billion earmarked for Agriculture financing in the 2020 Anchor Borrowers Program and Introduction of the 5-Star Model. ▪ Renewed engagements with State Governments on the access of AADS for rural feeder roads, agricultural infrastructure, and loans to youths. ▪ Targeted disbursements to agriculture value chain under existing interventions including RSSF and CACS.
The Panel discussion was moderated by Ms. Lilian Onyegbulam. The panelists included: • Sen. Abubakar Atiku Bagudu (Governor Kebbi State. Chairman National Council on Food Security) • Sen. Aliyu Sabi Abdullahi (Senate Deputy Majority Whip. Member Senate Committee on Agriculture and Rural Development) • Alhaji Sabo Nanono-Minister of Agriculture and Rural Development (represented by Alh. Zubairu Abdullahi-Director, Policy and Planning, Federal Ministry of Agriculture and Rural Development) • Mrs. Ndidi Nwuneli MFR (Managing Partner, Sahel Capital) • Dr. Chinedu Zephaniah (Deputy Director Development Finance Department. CBN) • Dr. Odedina (Commissioner of Agriculture, Ogun State)
Please see below highlights from the Panel discussions and Q&A session.
Sen. Aliyu Sabi Abdullahi • Senator Aliyu noted that the National Assembly is currently developing bills such as the National Food Reserve bill 2020, and the Agricultural Industry and Modernization bill which is currently at 2nd reading at the senate, to support mechanization of Agriculture and improve production volumes and the overall performance of Agricultural sector. • In the 2020 National budget which was approved by the National assembly on June 11th 2020, the amount N102 billion was allocated and passed by the Senate for the Agricultural sector.
Alh. Zubairu Abdullahi (Federal Ministry of Agriculture) • The Federal Ministry of Agriculture and Rural Development (FMARD) disbursed 70,000 MT of grains from the strategic grain reserve and is currently scaling up efforts to replenish the reserve’s stock. • A cluster system based on the Malaysian model is being adopted in a model phase for key agricultural products such as livestock. • The Ministry is training 7,500 extension workers to boost access to rural smallholders. • FMARD is reactivating 3 truck assembly plants. Setting up 5 modern abattoirs in 5 states across the federation. Recapitalizing the Bank of Agriculture (BOA), and Nigerian Agricultural Insurance Corporation (NAIC) to increase access to funding. FMARD is also setting up Agricultural processing zones in each geo-pollical zone in the country. • The Director noted that FMARD is committed to scaling up mechanization and will shortly be launching an initiative to provide close to 10,000 tractors to support farmers. • He stated that a committee has been set up to design and implement strategies that will boost financial support available to local farmers. • The ministry is collaborating with CBN to release funds to farmers through micro-credit systems and is also reaching out to farmers through the Anchor Borrowers program. He added that although the focus is on smallholder farmers, the challenge is not on the level of production but on the marketing of the produce e.g tomatoes that need quick market access. • The Ministry has earmarked N600 billion as post-COVID-19 intervention funds, and N60 billion for rural road infrastructure.
Mrs. Ndidi Nwuneli • She pointed out that Nigeria has a fragile agricultural ecosystem stemming from the lack of credible data on food production, disorganized markets, poor implementation of a developed policy framework. • She recommended that the government should prioritize the availability of nutritious food, strengthening local supply chains, and create an enabling environment for the private sector to lead within the agricultural reforms being introduced. • She further called on the government to introduce incentives for SMEs to effectively contribute to the growth of the agricultural sector.
Dr. Odedina • The commissioner noted that the State has processes in place that allow it to distribute fertilizers and other inputs for farmers within the state. It currently receives fertilizer from a company in Kano. • He mentioned the state is participating in the Anchor Borrowers program and has begun training for agric extension workers.
Following the panel discussion and Q&A was the closing remarks delivered by Ekenem Isichei, the Managing Partner ACIOE Associates. He thanked the partners, moderator, all participants, and panelists for their time. He called on all stakeholders present to prioritize gender inclusion in all reforms and initiatives being introduced into the sector. He closed the webinar by inviting everyone for our next webinar scheduled for the 19th of June 2020.