EXPERT SEEKS REMOVAL OF STRINGENT MEASURES FOR SMALL PROCESSORS PERMIT

An expert in the agriculture sector, Mrs. Chi Tola has called for review of stringent policies for obtaining food processing permit by small holder farmers who are itching to go into processing activities.

Tola said there is the need to review several policies and monitor the activities of some of the food regulatory bodies in Nigeria.

She said that food processing industry in Nigeria is increasingly now being seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture.

According to her, a well-developed outcome focused food processing industry is expected to increase farm gate prices, reduce wastages, ensure value addition, promote crop diversification, generate employment opportunities as well as export earnings.

She regretted that currently small processors are facing bottlenecks in obtaining necessary permits and or endorsement for their small agro processed products.

“We are calling on the federal government to not only monitor the activities of these regulatory bodies but also review the regulatory policies to make it small processors friendly.

Include specifics and dedicated policies and special consideration for Agriculture and its value chain.

This call has become imperative now as many small holder farmers who are willing to venture into agro processing are having difficulty getting regulatory permits” she noted.

Speaking further, Chi Tola who is also the executive director Women in Agricultural Advancement and Sustainability Africa, (WAASA), argued that a small holder farmer who has decided to go into Okra farming and processing, seeking to have a NAFDAC permit to process and package okra for distribution and sale in Nigeria should not be made to pay so much with extensive visits, pointing that Federal Government should review some of these requirements to accommodate small scale processors.

She said, “Standards must be high but fees and procedures must be accommodating for us to really maximize the economic growth potentials in the agro value chain and evaluate the extent of the government’s efforts in supporting local food processors.

Most of the sales outlets in Nigeria now are becoming aware of the need for products sold at their shops etc to be NAFDAC registered, but the question remains, how many of these small processors can afford the fees? Does processing of these farm harvests require all that is being asked for by the regulating body?”.

She notes that while change in emerging markets is dramatic, the developed economies are also experiencing a shift in consumption patterns. “Nigerians also are more health conscious than ever before. They are worried about the content of their food, its origin, freshness, and safety. 

These consumers are increasingly concerned about the sustainability of food production and its impact on the environment. Training programs are on going in the areas of packaging, processing organically, preservation etc, after these action is required” she suggested.

CBN TO PUNISH VIOLATORS OF ANCHOR BORROWERS’ SCHEME

The Central Bank of Nigeria (CBN) yesterday issued guidelines for the implementation of its Anchor Borrowers’ Programme (ABP), listing far-reaching sanctions for any violations by all stakeholders.

The ABP, a brainchild of the apex bank was launched by President Muhammadu Buhari on November 17, 2015 to create a linkage between anchor companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities.

The thrust of the scheme is to provide farm inputs in kind and cash (for farm labour) to small holder farmers to boost production of these commodities, stabilize inputs supply to agro processors and address the country’s negative balance of payments on food.

Essentially, the broad objective of the ABP is to create economic linkage between smallholder farmers and reputable large-scale processors with a view to increasing agricultural output and significantly improving capacity utilization of processors among others.

However, the new guidelines, posted on the CBN website detailed sanctions for any attempt by stakeholders including Participating Financial Institutions (PFIs); Anchor; Small Holder Farmers (SHF) and Project Monitoring Team (PMT) to undermine the objective of the programme.

Specifically, any PFI involved in the diversion of funds to unauthorised activities would cause the amount diverted to be recovered by the CBN while a penalty charge at the maximum lending rate of the PFI on the amount diverted would apply. Such PFI also faces outright ban from participating under other CBN Interventions following another infraction.

In addition, any PFI found to be charging un-authorized fees/interest run the risk of reversal of the charged fees/interest and issuance of warning letter to the PFI including outright ban from participating under other CBN Interventions after two infractions.

The failure of PFIs to disburse funds within specified period to the borrowers would also attract penalty charge at the maximum lending rate of the PFI and recovery of the undisbursed amount plus interest. 

Furthermore, an Anchor which fails to collect certified quality output from farmers after going into agreement as the Anchor to the farmers will cease to participate under the programme and would not be allowed to access agricultural and other CBN interventions.

Also, failure to pay for collected commodities within the specified period will have the Anchor bear the cost of accrued interest on the farmers’ account from the due date. Nevertheless, any Small Holder Farmers (SHF) engaged in Side-selling faces total prohibition from all CBN interventions as well as blacklisting of the SHF on any intervention by the CBN among other punitive measures detailed by the guideline.

HOW FG CAN TACKLE SMUGGLING OF AGRIC PRODUCE —DANGOTE

An agro-businessman, Alhaji Sani Dangote, has advised the Federal Government to put in place fresh policies that will bring lasting solution to the problem of smuggling of agricultural products into the country.

Dangote, President, Nigerian Agibusiness Group, NABG, gave the advice in an interview with Vanguard, yesterday, in Abuja. He said such step would lower interest rates, make more funding available for food production, and incentivize local farmers and local agro-industries to process Nigerian farm produce.

The agro-businessman said there were lots of bottlenecks affecting the funding for primary agricultural production in the long or medium term periods and these factors hinder government’s success in the fight against smuggling of agricultural products into the country.

He said: “What government should do most importantly is to bring in the right policies that will incentivize local productivity, lower interest rates, make more funding available, incentivize the local farmers and agro-industries to process our own local products.

“Government should also bring development tariffs and levies against those groups that are still making problem for our local capacity building. All areas where we have a local-capacity, government should look at it as necessary areas to encourage and incentivize.”

Bayelsa Fishermen, Trawler Operators at war over Fishing Grounds

Fishermen in communities of Brass and Southern Ijaw Local Governments Areas, Bayelsa State, have decried the unpleasant activities of fishing trawler operators, who they accused of damaging their fishing gears, attacking local anglers and violating maritime laws.

Vanguard reports that the fishing trawlers which should be on the high sea, about five nautical miles away, now come very close to the shore where local fisher men/women operate, and in the process, wrench the fishing nets, hooks and other tools.

Speaking with one of the Fishermen, James Sampson, Vanguard reports that the excesses of trawler operators has forced many of the locals to stay away from the sea.

According to Sampson “fishing is our means of livelihood, but the excesses of the trawler operators have forced many of our people out of business. The trawler operators have continued to violate the existing laws, which prevent them from operating close to the shoreline and in the process, destroying our fishing gears as well as loss of lives”.

The fishermen have called on the security agencies, state and federal governments to rescue them by prevailing on the owners of the big fishing trawlers to abide by the maritime laws and desist from operating close to the shoreline and destroying their fishing gears. They also lodged similar complaint with the Environmental Rights Action/Friends of the Earth (ERA/FoEN).

Also lamenting the predicament of the local fishermen, the Community Development Committee, (CDC) Chairman of Sangana community, Akassa axis of Brass council area, Benjamin Ayibatonye, said:  “Our people are really suffering from these trawler operators. 

They come beyond where they are not expected to be seen fishing. In times past, we use to see them only when we proceed deeper into the sea, but these days, they come into areas they were never seen before, as if the kind of fish they are looking for are now closer to the coastline. Each time they come, they destroy people’s nets.

Ayibatonye explained that each time the fisher men tried call the trawler operators to attention, the latter would begin to shoot at them.

He however called on the government to defend the rights of the local fishermen.

“We need help from the government, whether it is the state or federal government, the authorities should step in and prevail on the trawler owners and operators to go back to where the law permits them to operate and not come to the coast and give us problems”, Ayibatonye expressed.

CBN approves N75 Billion Loan to Farmers under NIRSAL

The Central Bank of Nigeria (CBN) has approved the disbursement of about N75 billion as loan to farmers in the 36 states and the Federal Capital Territory (FCT) under the Nigerian Incentive-Based Risk Sharing in Agricultural Lending (NIRSAL).

The loan guarantee scheme is a public-private sector initiative set up to transform the country’s agricultural sector.

The scheme was instigated by the Apex Bank, the Bankers’ Committee and the Federal Ministry of Agriculture and Rural Development, to guarantee 75 per cent loans provided by Deposit Money Banks (DPB) to farmers.

Speaking on the role of NIRSAL, The Head of the Project Implementation Office under the Development Finance Department of the CBN, Jude Uzonwanne, expressed that the guarantee would be issued to farmers through commercial banks and other financial institutions.

“NIRSAL is a flexible financing tool designed to change the behaviour of financial institutions. It covers all crops and livestock activities in Nigeria, while driving improved investment outcomes and job creation.

It is also building on a legacy of previous CBN interventions in agriculture that has helped create thousands of jobs,”  he stated.

Uzonwanne furthered that the programme was designed to create access to finance to farmers by integrating end-to-end agriculture value chains, such as input producers, farmers, agro dealers, agro processors and industrial manufacturers with agricultural financing value chains – loan product development, credit distribution, loan origination, managing and pricing for risk, and loan disbursement

“The integration is driven by NIRSAL’s 5 pillars, particularly the Risk Sharing Pillar and the Technical Assistance pillars, such as Risk sharing Facility, allocated N45 billion, Insurance Facility (N4.5 billion), Technical assistance facility (N9 billion), Agricultural bank rating scheme (N1.5 billion), and Bank incentive mechanism (N15 billion)”, he esplained.

Uzonwanne also added that NIRSAL would mobilize financing for Nigerian agribusiness using credit guarantees to address the risk of default.

Meanwhile, the Director of Treasury in the FCT Administration, Ibrahim Bomai, emphasized the role  NIRSAL as  being instrumental to the success of the Federal Government’s Agricultural Transformational Agenda) as it was established to address the grey areas inhibiting agricultural growth in the country.

According to Bomai “NIRSAL seeks to address all the technical, administrative and financial needs of the farmers along the selected agricultural value chain commodities in which the country has comparative advantage”.