NIGERIAN TRIBUNE, 30 JANUARY, 2012

Page 1

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Nigerian Tribune

MO;>JOyl'"t~ket

IN]L)1J§TRY

its developmental roles -&nusi

NACC reiterates support for bilateral trade Py32

-. Economy: CBN'll continue to play Py 2.

Monday. 30 January. 2012

r;~1<qX IPMAN western zone faults national body's claims Py33

Agriculture and govt's renewed interest Od ldllOll Om ....Jtha.ule". w,os

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Ova' Ume. agnculwral growth has slowed down and today It ls undcr p~rforh1ll1g

despH~

for a shift 01 focus from 011 to othn- RCtora of the economy. the: agr1culture ac:ctor til parUcular R«ently. thc fede:ral Government launched Agrlcullural Transrormation Agenda In line with tts stralcgy of using agrtculture as a key driver Gr the national economic lrllnSfGnnaUOn

disburse funds to I&nners al alnglc digit Interesl rate. while under the agro-Input and seed dlstribuUon, goycmllleni is targe:ttng nVl! million farmeJll aa agalmlt nve hundred thousand farmers who had been benerttlng from gGvernment subsidy In I

they IllOf"I!: or as bc:aIme poIllk:ai adV'Clltures Alrlcultural Crcdlt OUATanlec Sc.hc.rac l'u.ad IACGS') The ACGSF _as established by Decree No. 20 of 1977, and s tarted operations In April. 1978. Its ortglnaJ share capital and P'lid up capital wue HIOO mtJllon and HS5 .6 million . respcctJ~ly. 1llc Fe<kral Gow::mmc:nl hokb 60 per cent and tht' CBN. 40 per cent Gf the shares. The capital base of Ihe SctKmc was tncrEas<d to N3 bUiIon In MIlI'dl. 200 I The Fund guaranlccs e:ruIlt factlttles Clttended LO farmc:rs by banks up Lo 15 percent o(tl1I!amount In default net of any security realised The Fund Is managed by thc apCltbank. wl lteh handles the day-to-day opc:rati0n8 of the scheme The gUldellnc:a stipulate thc eligible enterprises fGr which gUOraJllec:a could be Issued under thc SchC'.me Betwecn 1978 and t 9S9. _hc:n thc gove rmn e:ut stipulated IcndIn& quOlaS for banks under the scheme. there ..... consistent lne:rcaM In the. I~ndlng portfolloe 0( bank. to agriculture, but aner thc lkrcgulaUon of lh~ nnnndal SY:'ltt'm

banks atarted shying away by reducing their loans to the: IICCtor due to the' pt'rcelved risk In order to rever5~ the d«lInlng trend. sevcnl JnnovatJons and prnducta were tntroduced under the Scheme such as: aclfhelp group linkage banking. lIust fund model and Inten:tlt dnllw back ACrleuJtural Cred.lt Support Scbeme

nlonnous potenUals In partk'ular, funding le~1 In the sector sland5 al (ACSS) about 2 per exnl of thc: The ACSS Is an total lending of banlui u InltlaU~ of the Federal against 8 Pt"-r cent In a Government and the country Uk~ Kl!nya SomI! Cenln l Bank with the of Ihe rc:a8(I08 for the k)w actlv(' aupport and funding Includc: lack 0( participation of the undualandlng or Ihe BanJtenr' Commltltt 11M: agrleultur.l s~etor, schC'me has a prc:scrtbed percc:lved high rl5ka, fund of NSO bmlon ACS5 com plc:. credit was Introduced to enable .s cssmC:1I1 pfO('~"a farmera exploit the procedure and high untapped potentials or transactton costs Nlgerla's agricultural It Is a paradoll: lha I lhc IoCCtOl". reduce Innallon. placc of agrlcullure 101Ver the coat of nnance In the polUlCS agrtcullural producuon II alldeconomyofNIgtt1a Is c. food Items). generat~ so V8.rkgIIled and lends surplus for e.port. to be much abu.Kd Inc:n:aK Nlgeria's fOf"C'tgn In a nutshell. the earnings. as well as dl5COVUY or 011 and subeequnlt shlO or focus divers"'" Ita revenue: ba.soc AI national level. the to the black gold sounded scheme operates through a death knell on the a Central Irnple:rnc:ntatton agriculture sector CommUttt ICICI whllc at NIgn1a earm over SO per cent of her rtVcnue from -Akinwuml Adeslna. Ihe Fed('ral Capita l the petroleum Indusuy, If'"uler qf Agriculture TerrllOl"y 1FCT'1 and stale according to several agc::nda President Goodluck levels . Ihe scheme reports. but Ihe sector Th e threc: prong .Jonalhan emphasised (Continued on page 22} actually att'QUnts for IeIIII approaches are agro- Ihal the project .... s a lhan 14 per «nl of the Input distribution. commitment to the total GOP. whereas devdoplTlCnlol'lmjJfOVed transformation of the agriculture comlnands an seedlings to fannenr and agricultural &eClor of the 11 Impressive poalUon In qr1Culturai nnand"g. A economy. with the Uds reslX'ct. kcy element of the primary objective of ACTlNG 61OU' IUSlHm lDtTOI Thc: Impact of the a g ric u I I u r a I ensuring food security acctOf" Is not being fe:1t by transformation lnilialive whilst promoting Cltport Is Ihe promotion of In.grlCllttunvaJuechain thc: averagc Nigerian MAlfTUtlE AlUlA Major1tyofpcoplc lrnppcd agricultural flnanclng 1Vhett the counlfy has a w. ............. ,...., ...... ~ ....., In the poyt'rty ~b dwd through th~ Nigeria comparative advantage LUOUI P'IOI"UIY & (NViIOMlNT In rural artas. which Incentive -Based Risk laIUat.h·c. ~-&.,......c-.....~ a..to... ___ ~"'" hold3 aboul 80 per «01 Management SJ1II~m ror Bdore now . or the national Agricultural Lending successive gove.mments, CAPRAlMAlllT AVlAJlON population fNIRSALI. which (OCU5CS banks and other prtvate "..,r-....IOW .......) W. . . . . . IGW......., Over the yea fa on de riSking lhe e.nUn: COIlCCffi5 ha~ c:mbarkc:d lIMOS & MAIIITlIIG IHSUIAHCE ~mmLS al all levels agricultural mue d18Jn on varytng InlllaUves to w. ....... (OoW .........} .............. Iaw .....) and some prtvale and then:by altl1lcttng the dcveloptheS«lorandby con«ms ha~ embarked desired now of extension boost food rrmU(OM IIIIOHrrMAUO Gn sevc:rat Inltlatlve.s Invealments from Ihe producUon. these efTorta S-~rs-""', OM..~CS-"""" aimed at boostlng rood prtvate ac:ctOf" and fordgn il<n''CYer tur~ not ykJded (otIII[lCf & IHDUSTIY producUon In the country: InvestoJll Uw: muchdesl~ n:tIult ...... 0wIIIrIII1""'" ~uably not much wu Under lh~ agrk'uItUrt n1l!n: wu both the Crttn achl~ In this regard nnanclng. the. Ce.ntral Revolullon and Its Reeent df'velopmenLS Bank or NlgcrtaICBN). pU'Cieceuor. Operation In tllC naUOn's economic ",III collaborau' wllh reed the Nallon 'o,pcac"':=...c"'Co"<o"c'oo"'c::"' '''-OcOR" ''O'_Cco"" mCm c..:.ercial ban~programme~In~"~,~,_.... "",~t::'oJL_ _ _~'"==~'=!~~t~,==~,.~,:t==_ _ _

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NIGERIAN TRIBUNE, 30 JANUARY, 2012 by International Institute of Tropical Agriculture - Issuu