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FG saves N25bn through direct distribution of fertiliser to farmers

By on August 25, 2013

The Federal Government, on Friday, revealed that it saved the sum of N25 billion on fertiliser distribution in the year 2012 by directly supplying the commodity to farmers.

The direct supply is part of the Growth Enhancement Scheme (GES) introduced by the Federal  Government, Dr. Akinwumi Adesina, the Minister of Agriculture revealed in Asaba, Delta State where he presented a paper at the 9th All Nigerian Conference of Editors programme organised by Nigerian Guild of Editors (NGE).

The minister pointed out that the approach eliminated middle men as well as the massive corruption accompanying the destribution of the commodity nationwide.

Adesina revealed that 10 million farmers had been registered under GES, adding that 1.5 million smallholder farmers received subsidised fertiliser and seeds while using their mobile telephones in 2012.

“So far in 2013, more than 3.4 million farmers have received their subsidised inputs via the GES programme and electronic wallet scheme, and we expect to reach close to five million farmers by the end of the dry season,” Adesina said.

The minister said the reform in the fertiliser and seed sub-sector had attracted the private sector, with the number of local companies involved in seed production growing from 11 in 2011 to 70 in 2012.

According to him, Syngenta, the world’s leading seed company, had established a plant in the country to develop and commercialise high-yielding seeds for farmers, while Dangote Group had invested about N542.5 billion in fertiliser production in the country.

Adesina also revealed that two foreign companies, Indorama and Mitsibushi, had concluded arrangements with the Federal Government to invest 1.3 billion dollars (about N232.5bn) each in the establishment of fertiliser plants in the country.

The minister noted that existing fertiliser companies in the country were setting up their own supply networks to reach the farmers directly.

He revealed that in 2012, the companies directly sold N15 billion worth of fertilisers to farmers, adding that in the same year, seed companies soldN1.5 billion seeds directly to the farmers.

According to him, Nigeria had become more transparent in its fertiliser distribution, confirming that for the first time ever the country got subsidised fertilisers.

“I can also tell the nation where those that got the subsidised fertiliser got it, how much they paid, how much the government paid and its impact on food production,” Adesina said. “So revolutionary is the electronic wallet system that several African countries, as well as Brazil, India and China, have expressed interest in adopting the system for reaching their own farmers with subsidised farm inputs. Nigeria, which used to be known for the worst level of fertiliser corruption, is today exporting transparency.”

 

 

 

[Nigerian Telegraph]