Editor’s note: Kemi Adeosun, the finance minister has recently admitted what all Nigerians feared most of all – the country fell into recession.
Nicholas Oluwaseyi, the NAIJ.com partner blogger, lists 7 ways out of recession.
More details in NAIJ.com’s step-by-step guide for guest bloggers.
President Buhari and finance minister Kemi Adeosun
Newspapers are full of bad news—economic uncertainties, persistent problems in the country, more strife and terrorism. Many Nigerians are pessimistic not only about our Nation’s future but their own as well. Friends are not faithful, marriages are not stable, streets are not safe. Financial struggles, job problems, health problems. Life is depressing for many people. Lots of things are not working.
No gainsaying that the European were not only exploiting our country for cheap labour and our resources, but it was this same person that encouraged us to actively use our Hoe and Cutlass. In order to facilitate the easy transport and processing of agricultural and mineral products, they built many infrastructures. With all these, the country was doing fine.
A river that forgets her source will dry up, they say. 56 years after gradually forgetting her source, Nigeria’s economy is dying and without going back to her source the economy will soon collapse. Until the 1960 independence, the Nigeria economy has majored on agriculture. We were self sufficient in many things before oil discovery. Before the oil discovery, Naira was stronger than the British pound and American Dollar. Independence came and agriculture was being gradually swept under the carpet. We found oil and forgot what even the European saw in us and came to exploit. The same instability that was not taken care of in 1960 led to 1967 civil war and that has posed major problems to the oil-centered economy of ours. This same oil was one of the fundamental causes of the civil war. With oil production crippled, we have nothing to run to than the old love and pride.
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With a 1.6% allocation to agriculture in the 2016 budget, it’s obvious even to the blind that our pledge with mouth of diversification of the economy only stops at the tongue. The 1.6% of the approved budget for agriculture is not sufficient to fuel our much needed diversification of economy. How do we take care of agriculture at the rural level with such a meager allocation?
We have abandoned our old love and pride – agriculture and now we’re reaping the gain of our ingrate attitude. Agriculture has been ridiculed of all sectors over the years. We married a new wife – crude oil and forgot the old wife – agriculture. Crude oil production has been elevated over the years on international stages and we confined agriculture to the peasants in the villages.
It’s time we quit the oil and gas based economy. This has been the talk all these while, even the Federal government has agreed to this call. But none has since then materializes. Our renewed love has been confined to the four corners of our mouth. The Federal government has analyzed the problems, asked what went wrong, decide on what to improve on – good thinking! But we have to win the love back with the right policies. All the revenues we’ve made from the oil should be invested in agriculture, but rather we we’re importing luxuries which becomes liabilities to the nation.
Children of the nameless farmers working tirelessly are not willing to follow the paths of their fathers because of the negligence of the sector. There has been mass migration of able bodied youths from rural areas where farming is largely practiced to urban areas. The old and feeble can only take up farming to take care of their immediate family.
The agricultural research institutes across the federation seem to be in limbo. There are no crystal clear management of these institutions. On few occasions we’ve had major breakthrough, but hasn’t been follow up of the implementation.
With the increasing population yearly and underfunded agriculture sector, our hand-hoe farming can’t even feed the present population talk less of making business out of it.
The agricultural sector despite many decades of neglect remains the highest employer of labour in Nigeria. The sector employs about 70 percent of the labour force in the country. Conversely, in USA, only about 3 percent of the entire population are farmers. Yet, they are able to meet to a reasonable extent the food needs of the United States.
This massive production rate is made possible by use of sophisticated farming machines and techniques which are totally lacking in the Nigerian farming system.
The majority of the farmers in Nigeria still make use of crude farming tools such as hoe, matchet, diggers and so on.
With only about 2 percent reported to engage in mechanized agricultural system. Thus, the Nigerian farmers are often referred to as hand-hoe farmers. In fact, the mechanization rate in Nigeria is 0.27 hp/hectare. This is far below the FAO recommended rate of 1.5hp/hectare. Thailand which is the major supplier of rice to Nigeria has a rate of 0.7hp/hectare. While highly industrialized countries like Japan has mechanization rate of 7hp/hectare.
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There has been a minimal implementation of old policies and formulation of new ones to improve the sector by the government. The fertiliser subsidy is yet to have much effect as the availability to the genuine farmers in the villages has been crippled.
I list below some of the ways out :
1. The land use decree: The 1978 land use decree should be amended by the government. This will decrease land fragmentation and enable farmers acquire enough land to support mechanized and commercial agriculture:
2. Farmers education: The government should employ more agriculture extension workers to educate farmers on the use of modern equipment and farming system. Farmers should also be thought to read. write. And to keep simple accounting records.
3. Training of maintenance technicians: Technicians should also be trained to maintain the sophisticated farm machines when and where ever they are available. This would ensure the continuous operation of such machines. Engineers in the ministry of agriculture should also be sent abroad for special training.
4. Encourage the local manufacture of farming machines: Local manufacturers should also be encouraged to start manufacturing these farming equipment like tractors, harrows, ploughs, sprayers, planters and so on. This will increase the availability of such machines in Nigeria and reduce their price. Such companies could be encouraged through granting them loans or tax holidays.
5. Improved access to credit: The major hindrance to agricultural mechanization remains poverty.
So, credit should be made accessible to farmers who wish to procure modern farming machines.
6. Improved infrastructure: Government should improve in the provision of infrastructural facilities. Such as road network, electricity supply, irrigation facilities, storage, and processing facilities. All these would encourage commercial farming and decrease food waste.
7. Government policies: Government should make more policies directed towards improving the agricultural sector.
Going back to our old love might not change the Nigeria’s economy in a day, but it will change the Nigeria’s economy for many years to come.
Nicholas Oluwaseyi is a young medical student whom God has favoured and committed a great vision of seeing mankind turn into eternal HOPE. He could be reached through his e-mail nicholasoluwaseyi6@gmail.com. You can also follow his blog https://hopecitadel.wordpress.com.
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