THE AllO
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WEDNESDAY. FEBRUARY 29, 2012
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ISSUES
First, it was fu el s ubsidy removal. ow, it is fertiliser s ubsidy removal.The first generated heat; nothing is being heard about the other becau e the iss ue seem not to be as significant as the fuel subsidy But such analogy may be wrong because fertiliser is crucial to food production. Self-sufficiency in food ca n only be achieved by making fertiliser easily accessible to and affordable by farmers. The Federal Government intends to stop fertiliser import to allow private investors drive the bus iness. But some stakeholders, are supporting fertili e r s ubsid y retention, reports DANIEL ESS IET. R !\Ilgf'rin k'a feed ILvif and ClIM'" it ~J to Incre<IM tJw. rroou'-IIYlty of (aunt',<1 Flrm~rs nftd MoIIt'r wN~
F:!,
.nd fertll,,,r wklchboost r,oductlv,ly. y.eld\ 1111(' r'o ,'.b,','Y
AI/hough Ihf' ROI't'mmf'nl
~ub~.dl~t'~
fertill'lot'l . tlf-u13 ih~ ~Ie lfflf't'rl("r of t~
~Ubsldy ~ It) hlove h\nd~ ('.4'1 .... flI5 to. thto fr~ now of. 1M cummodity rr5ulting In It, d~l~rml1'IoIIi(lfl II) lew'le 1M bWilnftS of f~hl~r
rraduct. Ihfo
"net
pn\ atr ...'Ctor 1lw dect'lIOll 15 gmC'rallng hi'll h'hll~ lIOmp !ltllkehlli,dus .uppt.rl tI~ d~~u lolhon of 1M fm1i~ mul.el 10 mthront' acce5Ibllll),. olhf'rs au' pushlns for IhC' continued tuMrdis.llron 01 Ihe commodIty In \'ww of thr roor ''''''nculi OIpKlty o f most rur.tI fumron But tJw q~ti lf1 IJ Do ~ lillm'I('n who nftd the I'rodUI:! more grt ,p Sid, 8"'-clill I J2-veillr~d fumer hVlng lit Guyuk,. rur,t1 lown In Ad.mlwl St.. te, I.. me_"tlng ,'Ill' dlHlcuity m acceUlng fertth~r, ,.IJ hr IS long ..s he could ~ member, hi !Hother h.d bel'n bur.'"' ferillist'-r fOf t~ IT 51N111 filmll)' farm rom one of ttM.- 10..1 households Ihllt hu .ac.:ce'i5 to II 8wru. whet ""Id he has ~ti!lTted rus own slNlll maiu .!lel SOfd\um fInn of I 5 hectIre. IJ UI"Ule of w~ to buy fmll~ fOf' Ius c"'f'"" f Ie said he 15 shll de~颅 Ing on h1." m ..t leT'5 connection! "TIlt' govt"l"nn,enl c:onlruls fprlih5t"l" d ...tTlbulion In f)UJ 'tille If you Ire not ron10 Ihfo
Should fertiliser subsidy go? 10 Qnt' of the house~.lds l<IIht h<lls the produci. you c.. rmot K'Cft,S 11,he e'rl<lllnt'd" Acwrdlng to hlm._ Ihe goyt"mmt'nt provld~ "u~lal:Sf'd ft''f'hhSf'r to thl' ward rounClio", who rt'fh!lnbule II to the lown 1'1dprJ The eldPT! re5f'1I fprllh~r 10 lh~ hou~hold~ that h ..... e been providing po-
neeled
Kn'W 10
li楼l:l ~JJlI :t~~J'~h;'Cer1t1t5n on thplT C;ums or r~1I 10 relal!\ (OS .. nd clO5C' fnt'fld" 5uch.5 Bwe~'s famil)' TM T\lTilI rptall m .. rkt"1 IS 1150 In unrehlblp source of CerhllSft as the ITilden often buy up the supplies .. nd sell .. t big markets In urban Cftltre II hlg.her costs, Stdi Slid Bwe.... _ howe\'n, ~ discovered In Ihernallve liOU~ Aooss the 5bM from his 10cII blnk. Ayubl DWlnSille, I rurill sales .g~t. Hlb fertiliser prOducN by NOlore Chemical Indu"tne4 I.lrn lted, Pori H<IIrcourl, iI leadmg fnhh5l'r compoany. in one-kllosramrne pilch When Bwell
bouKhl ferlll15ft', DWilingille l<Iughl him how 10 sp.ace ilnd plilnt the ~s '" ..ddltlOn 10 115'"g the ferbllMf ~ropnlv Bw.nSille 1.5 OlW of 10 VII"'ge Promotns (VP,) trall~ by Notote 10 KI a5 ,"dependent ruTili fertlhser nlerchllnts In Adiunilwil Stile The VPs sale ITillning IS uruque '" thlt they educlle fUml'fS who buy their p .... "'"
5..J.wport for priyate sector in tervention
Spe<ll!dns with TIlt N.'tf,", the Programme Co-ordm.tor, Famlen DPvelopmenl Union (FADU), Mr Victor Olowe, Aid fl'rlili5er suiKldy ha,.4 not helped flrmeT!! ThO!lt' bc!TI~~~a.:::;"f~~'::' noted. ar.. rohtlcli11\5 who Canvusing the deregulltion of the lprhliser m",l<.el, Olawe "'Id II would en.ble f.rmen to IIC't'n.5 vilnous brilnds and Improve the1r filnn productwlty Fann-
'T he Federal G overnment is withdrawin g from fertili ser import and di stribution to aJlow the private sector to move in. The programme was said to be cos tJy and prone to mi s management and corruption'
en, M Wid, nt"t'd
ferllh~
d""
fue better
rro-
In hiS ronlnbulton, the M"NlS'"~ Dlrn:路 tor. Mld-Centurv Agro-Alhed VmlUrt"i Limited . MI Ray ObllJulu. uld the government' s mV(l\vement In fertlli."..r purch.. ~ and dl41nbullon I" one 01 the m.. ," rNSOn5 for low roruumphon The fertllisef programm ... he oh~",ed, I" Millvlly pollhciSt'd, With mlny politICIaN u''"S ft'Tllhser supply Ind 4ub5ldlt'5 10 s"mer vote and r~ ..rd f'.Jtron.agt' Chief Exn:ultve. Notore ChemlOiI In路 dustrles LImited. Mr Onilptt' F.ul Ol<.oloko, slud "The 5ubllldlt'S cml the 8fw..mment denl)' Ind often benefil lhe wronK people Above III, he <WId milny poor filrmers find II difficult to buy the !>okg hilS! of fertlhwr They etther buy," smlll Units (rom open hilgs. ""hKh oftt'fl contiliin de~Tld~ or Idulte.--..ted products. or wall In Vlln to r~I"'e 5ubsldl5t'd ferhll5l'r thll5 ffiJ55lng out on Ipplylng II It the oplimum lime, if II III 1-11' wid Ihe comJQny, .Wllfe of the inCOO5l5ttnCle5 In governmenl d15tribulton network. d('Oded 10 d~elop pnvlte dl,5tnbution cMnnels 10 m.u r~ IV~II_ Ib~ to C.. nnen m 5JnI,1l qUUllltJe OI<.('loko ~id the mlroduclton ol the one I<.llognmme fmih~ bilK WI! to ildd~ the financial chlllt'l'lg~ of 5ubsi.5lenl fAnn-
'"-The rilrmeT5, who earn
Ins than 51
14
. ISSUES, ..
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THE NA nON \VEDNESDA Y. FEBRUARY 29, 2012
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Should fertiliser subsidy go? • Conlin_'" fro", F,e IJ
(N)SO) • day. bye fa .. away from mnbt centre and cannot aa:ftS the fN.fket5 easily. Not only do the farmers (md it difficult to come UP. with the cash 10 buy the 50kg bag of fC!rtiI~. but carrying II home (rom thor marulplAce aho poRI • dWlenge for thmt... he said He .dd~ that while introducmg the one kilOKrAmml' bilg. Ihey selectN SAlem!":n 11150 Known u Vill.ilge Promoter!!. NOlore, ffioloko .aid. conductN .. rigorous and tnMparetll nationwide recnutmml of dutribubon p.rtncn. in which one o( evn)' Ii~ ilpphcanu eo-erged U II datribulion ".",-. To mNnc.'f: fanne,,' ~ 10 fertilll6. tw Ulld NotOTe flu embilf~ed on Issresive fe:rtlhser prOC'ftfitlA OkoIoko gid tbe a~elopmml would m . ha~ htrmt'Q' p'rOOuctlVity and Income. According 10 him. the companl Is targdin,; 1,7 mUllen qmrs in the !'Inl four yea,... .ddinR tIvol ,"ucR wID eNlble Nigeria to be! adl !!ulrlClett In rood
Case for subs idy Mrs Atlm Udg,b c~r. les II f:illrm on E~ Ebnan R.o.d In Akwillborn Stilte. Aftrr much dfort. h~ r harvn! Incr~.sed , producing plmtyof food for her family and mor~ !.han enou~ 10 IM'II al the kla.1 markd. IM dlff~enao, she said, is fe.-tdi5er For years,. thi5 basM:: inPUI wu aunply beyond hc.-r mNM Mld i;h(_ of other fatmenll . Costing about big. f~rhll.wr was lusl too ~xpm5n e. to uS('. arid buymg it on credit was 100 sreal a nsk for fannn-s who a,~ at the me.-q. 01 the raIR' <lind pour-qu.lIly 5ft!d5 Thm the KOVffnmf:nt brgan s ubsidt5lng fertdlJ« ana hlgh?t:leldll13 5e!'ds for farm:!1TlM:- mov~ cut ~rllli5ft poas by SO pu
N7.ooo.
TMrf' is no doubt that m&hng lugh-quality Joteds and fl!rtil~ afront.blr roc- .muIU filrIDer$, ituch <15 Mn Udoh. wJlI be th~ k~y to 1M r;Ov~merl' s agriculturr trilMformltlon a(l.rnda The fe.-liluer sul>sidy Pl"ORranunc! is 5t't'r1 as a modc!l by a numbe of Mflaln goYemm~nts ilnd intelTll.bonal agriculturr drvr:!. oemmla~.
:;pNldng with ne Natwm. EtekIW M"bm. a proffS5Ot of FisMries al 1M uga. Stair University (L\SUI. said Eannrnl riftd subsidy on fettlli5er to milisalr the e(fect5 of food crWs. The .uccus of Ihe agricultural mlnsformation agenda. M Mtra, drpmds to alargf' e l(tmt on (lph",a ferilliMhon ,lind Ilm ... liM5! in pl.nbng "\lon~ of the ~tl .. 1 m. PUlIS w llhm I.hr ~rasp of many small fimn·
".
MiUllru Nlld felllllM'r ,ubsldr..is impor. lilAl; and If truly m.naged Mitt potenti.1 for btg g'lIIn. in a ..hor1 !tlllf' Enn With tM rN.udiOn of mtr-rrst rat .... M.a.rtlf\5 Slid most filrm~1"I lire too poor to pily romm~rclal ratrs for fertilbft .nd SftCb He -'\'!Sed the lovenunentto W I up m~ dl.5tnbulJon ~ In remol~ .rea!! 10 in~ farmetlll · " :cus to fert.IIU1n. Ind 10 mcourage banb to provide gu.ranl_.
Goyernment 's posjtion The Federal Gc·vemmmt is wt to with· drilw from fentli5e!" import ;and diSlnbulion 10 allow tht! priv.te!«tor to move in. Irgulng that the fertlhser lubldy programme is Cot Oy and pl'Onf' to mi!1T\M1. IKf'mm1 and m n-uption. Mlnl.5t~ of A5ricultu re ilnd Rural 1Jrev...I· opmmt Dr AlunlVumi AdfSU\II !aid ~ would no longer ~ ferllh.w:r contr.Clor. beause the ,)'&'trm In which the government Imported Ind di.lnbuled f~r"h~ WIS iN!ffedive. iN!ffident .and corrupt as only about II pt" call of fannt'n etlIOyed the ,ubsidy Adn&nl5Iid undt'r the new alTAllg~mf!rlt fmillser import"1"1 would hone to build their msrkelS lind xII directly 10 farmen. Last y ....r. the FeJenl Gov ... tnrnmt Slud it !ipftlt ~ billion on lubs.dy fOf" 900.000 metric 10nl of f.l:!:rtiliXr 10 thilt farmer. could sel the cocnmodlty al I lowt'r pm ye1 mosl faTn"llttl could not ~ the comCnodily
Expert( opinioos The Ex«utiv ... Secretllry, ft'rtilaer Suppli~n Auoclltio n of Nlgenl ( FEPSAN).
Ahmed Kwa. uk! the nation has lhe~ li.1 10 produce its fertilber. Ue Hid the abundant natural glS DuN could hi!' ha,. nessed to produce nltrogmous fHtiIi5en. He ..id ~ ,Ire larg~ qUlntitie o f rode phoitph.te deposit. in 5okoto. Niger. Xwara. Dyo. ~n that can be used for the production of phosphat~ fertillscn. -The only r.w malenal thai ill not yet found in lubsmntill quantity in Nigma is potusium deposits Even th is c.an be lo urced from our No rth Africlln ndghbours." DUe 10 the lack of 1001 production. KWJI .. id most oi the fertlh!ef" used in the country i! imported "'ine COMt'quence of relying on Imported fertihse.r Include drillnm, tJ\e f~r;n ~ lM'rVe. U\!uffioenl supply aue to rug" capi~ tal for impor-t.ation .nd high ret.all pncH which m.ke the input unarrordable These 10 a large extent, h~ve led (0 iruu·lficienl fertiliwr and the lilll .... vaU.able very ex pensive" - Despite Ihls •. M .. id there wait hope for the rrvitalbahon of local manufacture of frrtillRrv. 1be factol"l that f~vour this. Kwa !Ald. Include. large op<lr15e of anble lind and I'COlogifS that are conducive for the rulbvation oT I varirty of o"ous; wlthdraw.l of the Pedenl Govf'lT\lnetll hom direct production and importation of fertili5ft - espedilly the privatisiltion of its two main production plantl - and r.rivahQ!ion of Slate r;overnmenl, ' ferillis ... r blendlnr; plAnts, among othrB Subst.nllal inveJtmf!nts hn·e made 10 boost futilile r supply . ' ·his includes Notore Chemica l Industries Limited ', m. slall~d np.city of one million metric tormes for lJreil. Ammonia and NPK and Federill Super Ph05phllte Fertilillft" Comp.!Iny (PSfC) with the Glj»CIty for 100.000 metric tOl"lnt'! of slnde ituper phosphate There are about 2S"buu:': blendmg plants m Ih... country. MQ!it oithrm are oWnftt by alate goVt'rllmmll. About five oi them are ow~ by pnval~ ~trepfftlfllrs ~ ha\'e In mst.alltd capaoty of about 1.8 million metTlc tOflne An effrcbve fertiliser distribution 5)'!tem. KWI opllmed. ensure thai the right qu.lity of fertJiiMT are delivered to fumen In the righl qu.anhty at the n~ht timt'; and that f:hey !\.ave kU5I 10 ft'rt.IIISft dote to lhetr farm gales. Undet" the public sector distribution ,ytt~m . Kwa "Id vanous mod~ls wet"t' applied. and dif(~rent price chlrged due 10 variation in sub.idy level. rl\is he ex. plalned, promoted dlYerstOf"l and ~ling as well as C'OrT\Ipl ptaC"tic:e FollOWing the hberllhnhon In 1997 he qid m.ny pnv.le I«tot" entrepreneurs have ent~r~d ltie fertiliser mark ... l . Kw ••ald mllny Ht up diJITlbulion network!. and were using their outlets/ depots 10 It'll to their dealer. In major agnculturill ueas who rew:i1 to f.rmn-s According to him. the h~.-.llSAhon MW Ihe r.pid dt'velopmenl of fer"liser !t'lling POints Ul the country ucept for one or two com~ruts. Kwa Mid ""':r.nvatf! suppliers are not making efforts 10 t'Vdop the market win - MO!t supplier. rdy mainly, on government orden. which thry re.dlly deliver on credit ~ But they iNI5t on full payment for ordet". by priv.te dlstribulor. While goven:-mf!rlt Id,fS delivery on credit, privatt' dlstnbutOr! ar... reqUired to ?f'C"'"iIt~ 0f"I QSh-iind-a~ bua However. thas m.y be bec.u5e of the expenencn oi supplit'n who Md ImIII"IOM)' fr.aud5te:l"l. Thi! 15 common in the country " A coruuJt.ant to the Afrleiln Development Bank,. Prof 81yi o.ramoI., 5il1d ~ther the subsidy nor f~rhhxr IS a solution 10 the complex agricultural problems. l ie ~ thai rNlkiiiKfarming profitable. .ustllnable and plocfuct.lve will re-quire
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• K .....
land use reform,. political empowerment of rural communities. long.term Inveatmf!rllS in irrigation. susl1ln.abre fertiliser use and !OIl m.n.agemmt. modem f.ann te<:hno&or;y .nd exleruion 5ervice. and traruport and COmmURICliltlon systt'Dl.5. According to hun.. the seedl of food II«Untyon grow with just a little frrtlli.!er and a rot oi political commitment at the top Although poor farmer • . urely access lerlil1Sf!r". lhe major btoneflCUlrie5 of subsidies. M noted, ar.e poIihoaru.
Chal lenges AI present. tM Nluon dOHn' t h.ave ,I strong c ommercial fertiliser mdustry 1bere are three m.,or compMUe Involve(! in the bwines.s Notore Chemicals Indll5tries Umiled. Federal Supper PhO!phate Fertiliser Company and TAX Continental Umited . There are mlny lImalientuprist't which have no pTlmlry chemical production al they buy the., mllterlals to make mb.tures or blends, which are t~rmed compound f~rtiIJse.r Cle.rly. inVe'51ments in infrilslruClure and tnnsporl (TO<Ids. rilil. ports) .nd r~ duchon m c1eallng p rOCt'SllC'l by tM Customs .at... pari of tfie long-It'rm .5Olullon 10 incr ... uins ferliliRr u.w: In the coun lry Ferhli!er IS bulky As a result. tnruporl costs olre a m.jor eiemer.t of the to~1 cosl of delivery to the 'ilrm .and can have iI rNlJOr impilct on the profihlbillty of a factory or dlstnbutor.
.U.
Cost disparity Change! In ft'rtlllSt'r pnce ilOO / or subs.!. dtes iI.n as pohbcally 5en5ltlve.., changfS In food pricft. ln the pMt two deodes. 1M Kov, emmf!rll hIS not n'lade lrenmdous effor1 to dr\.dop domestic 'upply and rN.lK'e depm_ denc-e on the world rNlr\et.
Coyernme nt. banks to fund fertiliser. seeds sypply I....a5t yeilr, Ih ... federal mmistnes of Fmilnce and Agriculture ~&ned ,I Mf!rnorandum of Understanding {MoU) with comm"'rcilll bank! for th ... supply oi NJO blllJon worth of fertihllft" and ~s to f"ilJmt'rs Speaking II the Jlgnmr; of the MoV. Finanet' Minister Dr Ngo~1 Okonjo--Iwe.la Kllve a breakdown of tht' IOIln She wid N22.6 billion Wil! earm.rked for fertiliR.r Nl.7-billion for seeds procuruRt'rIt,IInd I~ bollanee for .gro--dealerll With ellct. of them entitled 10 N3 million. She .ddt'd thll the l<NIn shall be made .v.llilble to registered IKrlculture input deller5 across the .bl S~polilicil <tones .t • lubsldised interest ute of RVer. per
'Changes in fertiliser prices and/or subsidies are as politically sensitive as changes in food prices. In the past two decades, the government has not made tremendous effort to develop domestic supply and reduce dependence on the world market' ,
cenl per .nnum With the Ministry 01 Fina!'C-! r;u,IIran tee.InK 70 per cenl of the loan pnncJpaJ p.yml!'nl It i! mVlUged tiult the rartnt':rshlp Will eMur~ Ih.t at leut 500.000 farm~r. have acces to the.inputlnd the initi.tlVe to~ a t.... bout 3.soo jobs .and ,II1so r;f!rIftlIte 20 million metnc tOf\! of food The mmuner hid Ihe Growth Enhance. ment Support (GES) prog ramm~. which ... pnv.t~ 1«1:0r dnven .nd supported und~r thr financing .....r.ngement with the government gu.r.ntres 70 pet" Cft"Il of the lotal 1000n (aboul NI7 billion of the 1000n amounl) replaCing the old Inefflcienl fe-rtlliR.r Iplen tfuil wu led by the gov~mmenl •
Fake fertiliser 1he-e have been reporu of 5Omt' trade/\ JdlinJ fllke r~Ii11Sf!r" believed to be I combinalton of ft'rtiliM-r residues and at~ 1be compOlillion or the product as very low comp.red 10 th ... chemical ferhliser It. chemlal comp05ll1on shoWi that it is Ofg'-RIc fertiliser (milnure). Filrmers In KWlh htftl Councilor the FCT aUeged thai adulterated ft'rtiliser wu sold 10 them by Ihe council .1 subsided .-.tes A fllfmft". Mr Yoh.anna Gabnd Bako .s.aKl he bought 24 bags of '~rllhser from Ih ... council which were adulterated Wlth ..nds In hiS re.cllon, the Chairman of Kw.h Area Council. Mr Joseph K. Shut", con· firmN the ,IIUrgiltion. descrillln8: the meldent as unfortu"..le Ife Aid Ih... council wo uld inveshRlle ,lind report to the Fede:nl Mlni5try 01 Agnculture for further IIChon
Fertiliser pricing Thf' fin.llCi.aIIt.tllS of filrmn-s could be Improved If their production prices ue higher th.n the costs of f~rtill!ef In gen· eral. fumen produO! below C06l5thtnlosing • gTeat de.1 In Ihe blfg.ln. Fertiliser COits 35 pet" cent more than the Ust r.~ by 1M Ulllf' it r;~15 to fllrme~. Small umer!' Income from fuming" insuffiCient for them 10 live OIl. ~ ~ve to subsidise with other on-farm and oif·farm mcome-gent'rIhng activities 1M main woe 15 ihIIt prodUCft" prices Irt' not k~mR ~ With the COSt of fertiliser Th... haS mlublled uMge Governmenl.pproved the xlling of fmlll.'ft· for 2011 crop:pmg l('iI.50n as follows: NPK N2.ooo Ind Ure. Nl.900 a~~t the purcha.w PTlce of N4,750.Ad NS..soo per bag TM-re are man)' challenges for Imall farmers. l.abour is Insuf(ioer.t 10 .Uow more th.an 'mlill arel! to be weeded Yield 1(lI!5e! and IotIII aop (adun ue- oftm due to madr<t.~le weeding. Small filrmel"l' crops art' su_bject 10 allaci by pests. Gener.tUy. understanding the import&nct' of m.tchUig crop VlIIriety with field condllions b poor among sm.all
'.r-mrrs
Need for local manufacture Importation of fert1l.itt'r can be ted~ by u.mr; locally avanable raw malerials to l"J\IInufacture them. The constraint is the avaU.bility o f raw ma tm.1! ,udI as lim.... nilrogen and vt'rmiculate used to manufact~ fertili5ft. Hi&h ..",.,...,tion <05IS and ...... ..".. action costla1so push up fertilisermsts. mak· Lng them u.nalf~ by faJ"Ulot'l"l.