The Federal Government’s 15.2 percent raise of the proposed 2017 agriculture budget is an indication that the Muhammadu Buhari-led administration is serious with economic diversification, but this is only a scratch on the back as it is insufficient to address lingering challenges facing the sector.
Key stakeholders who spoke with BusinessDay commended government’s efforts to bring back agriculture as the mainstay of the economy, but noted that the proposed N92 billion allocated to the sector cannot, at the barest minimum, address issues relating to mechanisation, rehabilitation of dams, irrigation, extension services, insurance, fertiliser subsidy, research and development, among others.
“We have always advocate for 20 percent of the total budget for agriculture,” Kabiru Ibrahim, president, All Farmers Association of Nigeria (AFAN) told BusinessDay in a telephone response to questions.
“We are glad next year’s allocation to the sector has increase but the government need to do much more because of the importance of the sector for the growth of our national economy,” Ibrahim said.
Nigeria’s mono-product economy has squeezed state finances and threatens the implementation of the proposed 2017 budget, which benchmarks crude oil at $42per barrel.
“The proposed budget is just one percent of the entire budget for 2017. This shows that the government has not indicated its commitment put agriculture at the forefront of the economy,” said Emmanuel Ijewere, vice president, Nigeria Agribusiness Group (NABG).
“Nigeria signed the Maputo agreement to assigned 10 percent to the entire budget to agriculture but this is not so,” Ijewere said.
Ijewere recommended the development of linkages between farmers and the market, guaranteed minimum price for agricultural Products as well as a robust insurance for farmers.
Despite crash in revenue, the Buhari administration has shown keen interest in scaling up agriculture to raise revenue, make Nigeria food basket in Africa, create jobs and bring in foreign exchange via exportation of value-adding products.
But the present government is faced with reviving a sector challenged by poor storage facilities and processing practices as well as farming often mainly done with hand tools.
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