Unlocking Nigeria’s Agribusiness potential

towards a food-secure Africa

KEYNOTE ADDRESS
BY

DR YEMI AKINBAMIJO,
THE EXECUTIVE DIRECTOR,
FORUM FOR AGRICUCLTURAL RESEARCH IN AFRICA (FARA)

ON THE OCCASION OF

The 55th Annual General meeting (AGM) of the Nigerian Association of

Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA)
TRANSCORP HOTEL
CALABAR
CROSS RIVERS STATE

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 JUNE 4, 2015
Protocol and Courtesies
The President NACCIMA

Member of the Board present

Members of the press

Invited guests

Distinguished participants

Ladies and Gentlemen,

In the wake of our successful transition of power and a magnanimous show of

democratic maturity, I am greatly honoured and privileged to have been called

upon to join the commemoration of the 55th Annual general meeting of Nigerian

Association of Chambers of Commerce, Industry, Mines and Agriculture

(NACCIMA) and to deliver a keynote paper on the same occasion. Please accept

my cordial felicitations and best wishes as you celebrate this year’s edition of

your associations Annual General Meeting.

I must also congratulate you all on the wisdom to coalesce four cardinal sectors

of Nigeria’s economic prowess. It is stating the obvious if I remark that your

association marshals the fraternity of Nigeria’s economic force –Industry, Mines

and Agriculture is the ensemble of Nigeria’s arsenal against poverty. Your

association is Mr President’s best ally in his primary task of keeping Nigeria

economically sound and we all have a great role in supporting this new

administration to achieve ‘The Nigeria we all want’.

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Let me, first of all, convey to you the warm greetings and best wishes from FARA

community whom as you know are enthusiastic supporter of private sector

development and entrepreneurship especially in agriculture and agribusiness.

The Africa, We Want by 2063 should be like particularly in the context of

agricultural transformation for food and nutrition security, employment

opportunities, wealth creation, job creation and shared prosperity across nations.

Am very happy for the leadership of NACCIMA for taking the lead in Africa to

champion this agenda and trust- you are in the right path at the right time moving

forwards Africa and Nigeria as a country

I have preached all through my career the concept of an engine for economic

growth. I dare say that where Nigeria is concerned, that engine – to a large

extent is NACCIMA. I can only hope that things will only get better as you rally

yourselves behind a common cause of advancing private sector development in

Nigeria.

Mr Chairman, Today, I am honoured to be a part of the NACCIMA story as I have

been offered the rare privilege of presenting this keynote address on this

important day and event and at a time when Africa is recognized as having 7 of

the fastest 10 growing economies of the world.

As the Executive Director of FARA, I am happy to see the due recognition given

to agriculture as the engine of growth and transformation. Also, having been

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responsible for policy and leadership in agricultural research and development in

my three decades in the agricultural sector in Africa and elsewhere, I remain

passionate about agriculture being Africa’s priority option for economic

transformation, growth and development and its continued role in the socio-

economic development of communities and nations in the years to come.

I am particularly delighted that there seems to be a cosmic alignment of forces

culminating in the election of our own Dr Akin Adesina the erstwhile Minister of

Agriculture and Rural Development of Nigeria to the high office of the Presidency

of the African Development Bank. This is indeed the time for Africa! This is

another first for Nigeria and another opportunity that I personally believe will help

unlock our development potentials.

I urge you all and the leadership of NACCIMA to key into this rare opportunity for

‘the Nigeria we want’, realign your forces, improve your synergistic options, and

gi for the kill. There is never a second time to make a first impression. NACCIMA

has the moment and the momentum to unlock Nigeria’s agribusiness potential for

a food-secure Africa. This must now go beyond rhetoric.

It’s interesting to note that since inception, NACCIMA has grown into a colossus

and acquired significance within and outside the country. It has become the most

effective and efficient organ through which the Nigerian Business Class

influences Government on a wide range of issues affecting commerce and

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Industry. In order to take advantage of the opportunities which the new

democratic dispensation offers, the NACCIMA has improved on its services to

provide prospective investors with the latest information on the variety of

investment opportunities in Agriculture, trade, mines and industry in Nigeria. We

salute the past and the current able leadership for this transformation and

encourage you to take advantage of numerous opportunities that Agriculture

offers, especially in the use of science, technology advancement, innovations

and young African population moving forwards the sector and agenda of the

Association.

How to leverage economic transformation on agriculture

Agriculture is the most important sector in the Nigerian economy. It employs 60%
of Nigerians, including many rural women, and contributes up to 35% of the
country’s GDP. As in many other African countries, agriculture in Nigeria is
largely focused on food crops for the domestic market, given the Nigerian
population estimated at about 180 million people. In spite of this reality, Nigeria
remains a net importer of food, for many reasons. First of all, the majority of the
agriculture-focused operations in the country are small-scale, with limited
innovation regarding inputs, harvesting, processing, distribution, and access to
markets. The vast majorities of people who engage in agriculture operates at the
subsistence level, are uneducated and have limited access to training. Moreover,
95% of the country’s exports are dominated by petroleum and related products,
which has shifted focus away from agriculture. As a result, until recently, there
has been severe underinvestment in agriculture by the public and private

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sectors, civil society and bilateral and multilateral agencies. This has been
intensified by weak, un-enforced, poorly implemented and often conflicting
policies at all levels of our governance structures.

Today inclusive business development requires us to engage youth and women

on top of our agenda. I took some time to inform myself and read through the
NACCIMA membership records and history of growth and development. I noted
that youth and women represent a smallest group/share at all levels including
NACCIMA working groups within the different sectors .Women already contribute
significantly to the development of households, communities and nations. Yes,
they are the mothers of African citizens. They are also the care takers of families.
They are the pillars of economic growth and development considering their
predominant role in agriculture which is the backbone of most African
economies. Therefore, when Africa is said to be resilient to the global economic
and financial crisis where many regions faced depression as Africa maintained
impressive economic growth figures, between 4 and 5 per cent, we know who
are responsible. When Africa is said to have 7 of the world’s 10 fastest growing
economies, we know who are responsible. But we also know that women have
not had a fair share of the fruits of their labour and they continue to endure
hardships from all fronts. And, this is partly why they have not yet fully exploited
their potential. Hence the need for NACCIMA to deliberately engage and support
opportunities in Agribusiness that offers equal participation and benefits to youth
and women moving forward.

We nonetheless remain optimistic and determined to ensure that we take full

advantage of existing and emerging opportunities to reassert ourselves because

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it has been proven that no one will give you your rights, you have to claim your

rights.

Ladies and gentlemen, I was happy to note that NACCIMA is placing increasing

emphasis and investment in Agriculture otherwise, the Executive Director of the

Forum for Agricultural Research in Africa will not be standing in front of you

today. African leaders and development partners through the Comprehensive

Africa Agriculture Development Programme (CAADP) and the Science Agenda

for Agriculture in Africa (S3A) are committed to ensuring that agricultural

production is increased through science, technology and innovations

advancement ,so that private sector will be empowered to boost agricultural

production, agro processing, value addition and marketing . The marching orders

have been placed already for Nigeria. It will take three things for us moving

forward with our agricylture – these are INNOVATION, INNOVATION and more

INNOVATION. It will be foolhardy for us to be doing the same things over and

over and to expect a different result.

It took visionary leadership and innovation to place Nigeria in the top spot of the

global cassava production. What moved the cheese? We have always been the

same people and out land and cassava have always been there and yet we were

not number 1. Today with the 20% inclusion of cassava and the retooling of our

flour mills, we are able to further cut our foreign debt by a whopping 20% on

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wheat products! That is just the cassava story and there are more to be

discovered. Imagine a country the size of the FCT and a farming population of

160k people feeding the whole of West and Central Africa (385 million folks) with

Milk, eggs, poultry meats, etc. Yet we do have abundant arable land and water

systems lying latent. The potential of the agriculture sector in Nigeria alone is

huge. If NACCIMA would harness the potential membership of the Nigerian

agribusiness sector, even if oil process drop to 1 dollar a barell, by the sheer

proof of context demonstrated by our northern friends where 160k is feeding

385m, it means the sy is the limit is NACCIMA truly UNLOCKS agribusiness in

Nigeria. The country has a substantial base to build upon: its natural assets

including land (39.6 m hectares of arable land, of which 60% is under cultivation),

climate and rainfall, its coastal areas, its history as an agrarian economy. Today,

Nigeria is one of the world’s largest producers of cassava yet we import a whole

range of industrial and domestic starch based consumables, cashew yet you will

find cashew nuts in Shoprite (very often celebrated in Nigeria) as the

replacement of UTC, Kingsway and Leventis (I wonder what the future holds

when my children becomes industrialists), tubers (sweet potato, yams) yet 80%

of our homes still have mortar and pestle with over 40%PHL, fruits (mango,

papaya) with less that 5% processing and grains (millet, sorghum and sesame).

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In addition, the country’s population represents a large domestic market that can

support and sustain local production and processing while also providing a solid

basis for economy of scale. Nigeria also plays a key role in West Africa and there

are tremendous opportunities to access regional markets. Unfortunately, there is

limited collaboration across regional value chains; there is greater collaboration

between the West African countries and their former colonizers or the United

States, than with their neighbours. This has resulted in significant lost

opportunities in sectors such as rice, cotton and cocoa, and continued

dependence on imports.

FARA and other partners are working towards enhancing youth and women

participation in the entire agricultural value chain and that is why we are placing

emphasis on agro-processing and agribusiness through one of our successful

models called- UniBRAIN that brings together African Universities, Research

Organizations and Private sector to work together, deliver together and win

together along key commodity value chains from production to the plate. Allow

me to tell you that for the first time in Africa, we are starting to see science on the

shelves of super markets and plates of clients in hotels through UniBRAIN –

Agribusiness value chain development and would like to encourage the

leadership of NACCIMA to borrow a leaf from this model moving forwards.

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This is one sure way of unleashing Africa’s potential in socio-economic

transformation through agriculture so that as the African Union vision - “An

integrated, prosperous and peaceful Africa, driven by its own citizens and

representing a dynamic force in global arena” be it in trade especially trade in

agricultural commodities, be it in politics and global governance or in other

aspects of international relations but most importantly in feeding ourselves

instead of importing the food we eat where the annual import bill is nearing

USD50 billion - and feeding the rest of the world. We have the potential. It is

within our hands. To unleash it and make the desired difference. We cannot

afford to continue blaming the past- if the past failed us, we cannot fail the future

and time is now.

The public sector is responsible for creating an enabling environment for

agriculture to thrive. It also needs to invest in addressing the key issues that

currently hinder the sector by reinforcing trade policies and land tenure policies ;

investing in strong agricultural educational and research institutions; easing

government engagement in fertiliser, seed and input supply, distribution, and

financing ; providing incentives for financial institutions, especially banks and

insurance companies to support the private sector ; ensuring strong and effective

extension support services, and agriculture development programmes at the

local government level ; and providing adequate infrastructures, especially feeder

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road networks and consistent and affordable electricity. Moreover, agriculture

needs to be recognised as a key business sector in Nigeria, and like other

sectors, requires the engagement of the organised private sector across critical

value chains. The sector presents tremendous opportunities for the emergence

of small and medium- sized enterprises which can create value and jobs across

critical value chains. The private sector can provide financing, support systems—

including equipment, processing, transportation, distribution and marketing

support.

We welcome all stakeholders’ members of NACCIMA and our development

partners, national governments including the International Development partners

to take advantage of public private sector partnership strategy to work with FARA

more closely in this compelling drive of transforming Africa’s agricultural and

agribusiness landscape, where Africa’s rising is anchored. The Year 2015 which

succeeds the 2014 AU Year of Agriculture and Food Security, remains a

momentous year for all actors, Governments, Private Sector, Development

Partners, Civil Society Organizations and all of us to seize the moment and move

from rhetoric to real actions that will ensure that private sector, women and youth

have the skills, resources, and services to increase agricultural productivity and

actively participate in agricultural value chains.

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Moving forward Agriculture transformation will require all of us to enhance our

investments and actions in:

• Enhancing science, research, innovation and technology – in particular

technologies that improve productivity of the smallholder women farmers,

• Leveraging ICTs to improve risk management through effective and efficient

market linkages throughout national, regional, continental and international

value-chains,

• Enhance preservation of nutrient quality of grains, cereals, fish, poultry, meat,

vegetables,

• Expanding entrepreneurship of groups of women and young people,

There is an urgent need for improvements in productivity, via access to improved

seeds, fertilisers, water management techniques, equipment, financing, and

markets. Today, only about 5% of Nigerian smallholders use improved seeds

because there are significant problems with seed availability, quality and pricing.

Four seed companies dominate seed production; and there is a significant

amount of bad seed in the system due to the poor quality of produce from seed

companies. The fertiliser application rate is approximately 7 kg per hectare of

arable land, a small fraction of the global average of 100 kg/ha. Only 18% of

farmers receive extension services. Rudimentary technology is still used for

cultivation, harvesting and processing, which increases overall production costs.

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Storage capacity is poor; there is limited access to good packaging and no

organised warehouse systems, generating large post-harvest losses and wide

price fluctuations. Packaging is inadequate and inappropriate, due to poor

communication between the different players across the chain and lack of

awareness of the processors’ packaging needs. Direct and indirection distribution

circuits are fragmented and often hastily improvised, at very high cost. In

addition, high oil prices have dramatically increased the cost of transportation.

There is an urgent need to address the energy challenge in Africa, particularly

electricity supply. Energy is required for processing, packaging and storing

agricultural produce. Unfortunately, electrification is limited in rural areas, and the

provision of electricity is sporadic even in urban areas. Many processors are

compelled to rely on generators, and to devote a large percentage of their

operating expenses to paying for increasingly expensive petrol and diesel.

Alleviating these constraints will ensure that Nigerian produce is competitive

relative to imports (today’s combination of low yields, averaging 1.7 tonnes/Ha,

and high labour costs results in paddy prices of around US$ 300/t, compared

with $130-140 in Thailand) and affordable for local consumers. Beyond the issue

of yields, considerable emphasis has to be placed on value chains, in order to

ensure that they are not only efficient, but also effective.

In conclusion , I would like to recommend among other things the need to

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enhance Public-Private Partnerships and Investment Financing for Nigeria’s

Agriculture and call on stakeholders to establish and/or strengthen inclusive

public-private partnerships for at least key priority agricultural commodity value

chains with a strong linkage to smallholder agriculture and to strengthen the

capacities of domestic apex private sector intermediary institutions like

NACCIMA for inclusive facilitation and coordination to ensure engagement of the

private sector in CAADP implementation.

I will also like to urge NACCIMA to take on a serious moral obligation and/or

Corporate Social Responsibility towards building a solid economic base for

Nigeria by instituting quarterly forums that will advise government on the deeper

involvement of the private sector in Nigeria’s economic development.

'A forum like NACCIMA will, therefore, provide an opportunity for men, women

and youth stakeholders in the agribusiness sector to discuss and develop

concrete strategies for the realization of Africa potential for job generation and

wealth creation .

I thank you for listening to me and I look forward to fruitful celebrations

Long live NACCIMA, Long live Nigeria, Long live Africa

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