The recent agricultural intervention fund by the Central Bank of Nigeria(CBN) if carefully monitored could reduce the unemployment crisis in the country, writes SINA FADARE
Agriculture is important to the development of any nation; this development includes fostering the participation of youth in the agricultural sector. Youths are the successor farming generation and the future of food security in Nigeria. The government is thinking about this.
According to a recent UN World Health Organisation prediction, “by 2030, 6 out of every 10 people will live in a city, and by 2050, this proportion will increase to 7 out of 10 people” meaning that more young people than ever before are moving to cities in search of green pasture which is not there, leaving few behind to work in rural areas said a socio commentator.
According to the Nigerian Bureau of Statistics, over 70 per cent of the national unemployment rates of 23.9 per cent are youths. This alarming figure has encouraged the Federal government to stimulate youth interest in agriculture and special incentives such as credit facilities for youths who are involved in agricultural chain production.
Twenty-four-year-old Richmond Azillah’s venture into agriculture is interesting. According to him, he used to serve a rabbit keeper by feeding the rabbits and also cleaning their cages. He did this because he had no money to buy some for breeding.
He said: “One day, two females and one male rabbit were not in good health so the owner gave them to me to slaughter for food as part of his reward. On my way home, I thought of saving the animals rather than killing them. With this, I gave them Paracetamol and provided feeds as well. Gradually, the trick worked even though the male couldn’t survive. I later constructed a cage and after two months, I sent the two females for crossing and here I am today with over 100 matured rabbits.”
Richmond’s voyage into agriculture is a testimony that other youths can make a success out of the opportunity available. “It is like gaining something from nothing,” he pointed out.
Against this backdrop, the Central Bank of Nigeria (CBN) has said companies, individuals, and agro-processors of agricultural commodities are to access up to a maximum of N2 billion per obligor under the Private sector-led Accelerated Agriculture Development Scheme (P-AADS).
The Director, Development Finance Department of the bank Mr. Yusuf Yila who disclosed this recently explained that ” P-AADS is designed to complement the Accelerated Agriculture Development Scheme (AADS), earlier introduced by the apex bank to engage 370,000 youths in agricultural production, in collaboration with state governments as well as address the food security and youth unemployment challenges across the country.”
The apex bank pointed out that the maximum loan accessible under the scheme at N2 billion per obligor- would be repaid from the Economics of Production (EOP) for cultivating on the cleared farmland.
According to the CBN, the interest rate under the intervention shall be five per cent per annum (all-inclusive) up to February 28, 2021.
The CBN explained further that it will bear 50 per cent of the credit risk in the event of default by the participants while the repayment of the facility shall be made on instalment through the participating banks and spread over the EOP of the cultivated commodities.
The participating banks shall remit repayments received to the CBN on a quarterly or annual basis depending on the commodity financed.
The apex bank listed the focal agricultural commodities eligible for consideration under the scheme to include rice, maize, cassava, cotton, wheat, tomato and poultry.
Others include fish, sorghum, oil palm, cocoa, livestock/dairy and any other commodities as may be listed by the CBN from time to time.
On the eligibility criteria, the apex bank stated that prospective P-AADS participants must be existing or new firms engaged in agricultural production with proven capacity and bankable proposal; possess the acceptable title for contiguous lands of not less than 20 hectares; have good credit record and be able to provide collateral for participation.
Speaking to The Nation on tackling unemployment of youths through agriculture by the CBN, a consultant Agronomist, Dr. Henry Okafor, noted that agriculture is a recipe to mop unemployment of the youths in the country.
Okafor pointed out that the agricultural value chain in totality is a good pedestal which any country can climb to the peak of food security. ”It will mop up a lot of teeming youths roaming about on the street, most of the food produced will be exported thereby earning dollars and it will also give peace to the country because all those youths who were frustrated and later become a ready-made material for thuggery and vandalism will be gainfully engaged and will not have energy and time for destructive tendencies
According to him, in the recent past, a lot of intervention funds for agriculture have been embarked upon by the CBN which has improved the economy such as Anchor Borrower Scheme (ABP), AGSMEIS loan for SME’S and Agricultural Businesses without collateral and Accelerated Agricultural Development Scheme (AADS).
He explained that if the current intervention can be monitored and let it get to the deserving youths scattered all over the country, it will boost food production and most youths will permanently become commercial farmers who will also engage a lot of people on their farms.
Okafor noted that “agriculture as a sector that can absorb a large number of unemployed youth, there is a need for value-chain exploration in a bid to outline areas for job creation which include – marketing of agro-produce, agricultural extension services covering rural areas, logistics and transportation, technical and mechanical skills development for repairs of farming equipment and digital technology training to facilitate the modernisation of the agricultural sector”.
Speaking in the same vein, Prof. Adetunji Ogunyemi of the department of History, Obafemi Awolowo University (OAU) noted that the CBN programme will be laudable if it is not hijacked by saboteurs along the line.
He explained that agriculture revolution should be the watchword of the country at this critical period, adding that intervention fund channelled into agriculture and if properly monitored will not be in vain. “The so call intervention fund should go directly to the farmers without any hindrances and there should be proper monitoring so that at the end of the day the objective will not be defeated,” he said.
The monetary economist said the problem of Nigeria is not good policy, “it has always been there, and the major problem is how to translate this policy into a reality that will benefit the society that is where the problem lies. In the past funds designated for farmers have been diverted with impunity with little done to apprehend and punish offenders.”
Though Yila the Director in CBN was very assertive that all the commercial banks that would be saddled with the responsibility of getting the P-AADS to the youth farmers would be monitored and even sanctioned if the money is dormant in their banks, yet Ibrahim Dangiwa a farmer in Malumfashi, Kastina State expressed fear that the end-user of the money may not be able to access the fund.
Dangiwa lamented that when such gesture was extended to cotton farmers, it came with a lot of bottlenecks and most farmers were unable to access the fund.
He explained that any intervention fund that would be giving to the farmers should be done in a way that only those who are targeted for the fund should get it no matter where they are in the country adding that the youths who are coming in as new farmers may not have anything as collateral to access such a loan.
He added that if the fund can get to the targeted farmers, the multiplier effect in the agricultural value chain would be enormous and guarantee food security.
