Journey towards Food Security: The success stories of CBN

COMFORT EKELEME, BUSINESS EDITOR

Part of the cardinal responsibilities of any government is that of the safety of its populace. In this light is the issue of the security of life and property.

However, food security features prominently in the schedule of governance since it is an acknowledged fact that any nation that cannot feed its population does not have the moral and political legitimacy to remain in power.

Food Security has three basic prongs and that comprise of ensuring the production of adequate food supplies, maximizing stability in the supply chain and ensuring access at available prices on the part of those who need them.

In order to meet global needs, industry watchers are of the view that Nigeria’s food production must be doubled in the next couple of years to solve issues like starvation, malnutrition amongst others.

Food security, however, is a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.

This the Central Bank of Nigeria (CBN) in line with the federal government’s food security agenda has over the years empowered many Nigerians through its various initiatives aimed at improving food production and job creation.

Interestingly, the several intervention programmes embarked upon by the CBN Governor, Godwin Emefiele since his assumption of office, have helped farmers to significantly improve their yields and contributed significantly towards Nigeria’s journey towards food self-sufficiency.

Millions of jobs, no doubt have been created through these initiatives which many described as a good development following the call diversification of the nation’s economy.

Experts are of the view that the recently unveiled largest rice pyramid by President Buhari is another proof that the agenda on food security is yielding desired results, stressing that the rice pyramid would not have been possible if not for the initiative of the CBN Governor, that introduced Anchor Borrowers Programme to actualize the food security and sufficiency agenda of Mr President.

Interestingly, under the Anchor Borrowers Programme, CBN has disbursed a total of N948 billion to 4,478,381 smallholder farmers who cultivated 5.2 million hectares of farmland across the country, thereby creating 12.5 million direct and indirect jobs.

Sources are of the view that the programme has yielded the expected outcome in the last seven years, while the production of rice has increased in the country and more jobs created.

According to the CBN Governor, Nigeria can now talk about diversification of its economy from oil but now Agriculture as the country will soon be on the map of rice exporters to other country’s by this earn foreign earnings.

He said the rice pyramid reminds us all of the groundnut pyramid we used to have in the North and predicted a 10 per cent increase in credit to the agricultural sector over the next two years.

Also, about $2 billion out of about $2.5 billion, earmarked for key initiatives in the manufacturing, mining and agriculture, services sectors had been disbursed to over three million farmers cultivating over 4.7 million hectares of arable land in the 36 States and the Federal Capital Territory (FCT) under the Anchors Borrowers’ Programme

Emefiele said, “For example, we have seen the re-emergence of the rice pyramids. Rice production has increased to over 7.5 million metric tons yearly, from less than four million metric tons recorded in 2015, prior to the introduction of ABP.

“There were only 15 standard rice mills in Nigeria before the launch of the Anchor Borrowers Programme. As of today, we have over 50 standards and integrated rice mills creating jobs and reducing unemployment.

Emefiele said economic recovery had been aided by the growth of over four million farmers, Small and Medium Enterprises (SMEs) and manufacturers who are creating and growing businesses that are enabling growth in manufacturing and ICT due to improved access to credit.

Under our Targeted Credit Facility, which was meant to help households and businesses that suffered significant losses during the pandemic, CBN has disbursed N368.79 billion to 778,000 beneficiaries comprising 648,052 households, and about 130,000 SMEs.

CBN also disbursed N1.452 trillion to 337 large real sector projects in agriculture, manufacturing, services, and mining under our Real Sector Support Facility.

In the ’60s and the early ’70s, the agricultural sector was the backbone of the Nigerian economy. The nation’s production of cocoa, palm oil and groundnuts amongst other commodities supported the revenue needs of the government in addition to generating sufficient export revenues for the country.

Emefiele however, maintained that with close to 36 per cent of Nigerians employed in the agricultural sector, the emphasis on supporting greater growth of the sector became vital given the role it could play in supporting employment generation, wealth creation, and in providing domestic sources of staple food items and raw materials for households and businesses.

Emefiele said the agriculture sector despite years of underinvestment had a significant role to play in supporting the growth of the economy adding that it constitutes about 22 per cent of GDP and is responsible for employing millions of Nigerians.

Just recently, 106 civil groups under the auspices of the Coalition of Civil Society Groups (CCSG) hailed President Muhammadu Buhari and Godwin Emiefele, over the official launch of the highest rice pyramids in Abuja.

President, CCSG, Bassey Etuk Williams said the advent of Anchor Borrowers has been able to assist small scale farmers to increase production and supply of feedstock to agro-processors. It’s a loan without collateral to farmers being supervised by CBN, and here we are with the resultant outcome of the input.

“Farmers and especially rice farmers have recounted their gains following the output and major achievement of the Anchor Borrower’s Programme of CBN. The programme has increased bank finance to the agricultural sector, has enhanced capacity utilization of Agricultural firms involved in the production and as well improve the well-being of the farmers.

“The CBN Governor, Godwin Emefiele has no doubt changed and transformed the agric sector with the results of the various intervention programme in the sector. The increase in banks credit growth was driven solely by the policy of deposit ratio introduced by the CBN Governor. More than five hundred thousand beneficiaries have benefited from the anchor borrowers programme of the CBN.

“This intervention also spans around youth investment funds, real sector and health sector. These are major areas that the CBN Governor has intervened and Nigerians are seeing the impact of the various intervention to alleviate poverty.

CBN’s intervention programmes and schemes targeted at catalysing production and productivity in the real sector of our economy include the N1.0 trillion Real Sector Facility (RSF), Real Sector Support Facility (RSSF), Anchor Borrowers’ Programme (ABP), Commercial Agriculture Credit Scheme (CACS), Non-Oil Export Stimulation Facility (NESF), and Textile Sector Intervention Facility (TSIF).

Specifically, these programmes and schemes have continued to receive resounding commendations, as they have proven to be effective in expanding credit and stimulating investments in the real sector.

For instance, under the N1.0 trillion Real Sector Facility, the Bank has released a total of N1.40 trillion to 331 real sector projects in the agriculture, manufacturing, mining, and services sectors. Under its Real Sector Support Facility (RSSF), the CBN has disbursed N166.21 billion to 25 projects.

In the agricultural sector, the Bank’s has financed 666 large-scale agricultural projects with the potential of creating an estimated 70,070 direct and indirect jobs under its Commercial Agriculture Credit Scheme (CACS).