THE presidential directive to the Central Bank of Nigeria (CBN) to extend its financial support for rice production in Kebbi State under the Anchor Borrowers Scheme to 14 other states in the country is a recognition of the success of the project in the state. It also underscores the government’s resolve to promote food security and develop the agricultural sector into an alternative source of revenue for the country. More than anything else, it signposts the government’s readiness to diversify the nation’s economy.

Apparently satisfied with the N40 billion pilot scheme involving the local production of rice and some other staples in Birnin Kebbi, the Kebbi State capital, President Buhari, last week called for its replication in more states. Approval has already been given for the commencement of the pro­gramme in selected Northern states, as well as Benue, Cross River, Anambra and Ebonyi.

We heartily welcome this presidential directive. The plan to extend the scheme is a clear acknowledgement of the fact that there is no alternative to the diversification of the economy and the development of ag­riculture, if Nigeria is to overcome its cur­rent economic challenges and reduce its over-dependence on oil as its main revenue earner. Over-dependence on crude oil sales and imported food items pose a great dan­ger to the nation’s economy.

Available statistics from the CBN show that Nigeria can no longer afford the luxury of spending huge sums of money in foreign exchange on the importation of food items that can be produced locally. This is more so in view of the dwindling revenue from oil. About N1 trillion is spent annually on food importation. Central Bank figures show that the government spent $2.41 billion (over N517bn) on rice importation in three years, from January 2012 to May 2015. This amount covered three million tonnes of rice.

Therefore, supporting smallholder farm­ers in the country, as CBN did with the An­chor Borrowers Programme in Kebbi State, is a step in the right direction. It is an im­portant step towards food sufficiency. If the amount spent on the importation of food items such as rice, wheat, sugar, chicken and beans is channeled to their local pro­duction, it will help the much desired im­port substitution. The cost of food importa­tion in Nigeria in recent years is staggering.

For example, between 2013 and 2014, government spent N428bn and N307bn, respectively, on rice and wheat imports, while N901bn was used to buy sugar, milk, fish and chicken from other countries.

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It is a blessing in disguise that dwindling revenue from oil has re-awakened govern­ment’s consciousness on the need to look inwards for alternative sources of revenue, in particular through agriculture. But, for the current measures to succeed, the pro­gramme should be properly monitored and the farmers given every necessary support, including modern equipment and improved seedling, to enhance their production.

Besides, CBN and the Bank of Indus­try (BoI) should ensure easy access to the funds, at low interest rates. There is no doubt that many states in the country have arable land that is suitable for the cultiva­tion of rice and other staples. Poor access to funding and high interest rates have for long hampered progress in the food value chain.

Available data from BoI show that only 6.7 percent of small and medium scale enterprises (SMEs) had access to banks’ credit facilities in 2014. There are cur­rently over 17 million registered SMEs in the country, many of them in the agricul­tural sector. The sector holds the key to unlocking our vast economic potentials. It is the much-needed alternative source of revenue as it will boost exports if properly managed.

We also heartily welcome and support government’s latest initiative in agricul­ture tagged the “Green Alternative” policy. This roadmap towards the attainment of food self-sufficiency was approved by the Federal Executive Council at its meeting last week.

According to the Minister of Agricul­ture, Chief Audu Ogbeh, the objective of the policy which has a four-year imple­mentation period (2016 to 2020) is to make agriculture the biggest alternative to oil and gas business.

We urge government to pursue this pol­icy with sincerity of purpose to improve food security in the country. Nigeria is cur­rently going through one of its worst peri­ods of acute food shortages, as the prices of many food items have skyrocketed as a result of hyper inflation which hit an all-time high of 16.5 percent in June.

Overall, the challenges facing the econ­omy today present a good opportunity for the country to shift away from its single-product economy. Agriculture is a fertile sector with the potential to make a differ­ence. It should not be left in the hands of government alone. Private sector support is crucial while the Federal Government should provide enabling environment for agricultural ventures to thrive.