FEBRUARY 11, 2013 BY AGENCY REPORTER 1
COMMENT
Minister of
Agriculture and
Rural
Development, Dr.
Akinwumi Adesina,
has said the
Growth
Enhancement
Support Scheme,
introduced by his
ministry in 2012,
saved the country
about N25bn.
A statement by the
ministry on Sunday
quoted the minister as saying this in a keynote
address he delivered at the workshop on the
implementation of the 2013 farmers registration
and GES delivery scheme held in Abuja on
Friday. The minister said, “Indirect targeting of
farmers made it easy to divert funds, subsidised
fertilisers, seeds and tractors meant for farmers
to the open market, where they are illegally sold
at huge profits.
“As a result, tens of billions of naira are spent
every year to reach farmers with agricultural
inputs but the level of utilisation of improved
seeds and fertilisers remains very low.
“I am pleased to let you know that in 2012,
fertiliser companies sold a total of N15bn
($100m) fertilisers directly to farmers. Seed
companies sold a total of N 1.5bn ($10m) to
farmers, directly. The GES programme also
saved the government a lot of funds.Instead of
the former blanket subsidy system, the GES
involved direct contributions by the farmers, the
Federal Government and state governments. Of
the total of N15bn spent on the programme in
2012, farmers contributed N 7.5bn; state
governments contributed N3.8bn, while the
Federal Government contributed N 5bn. GES is,
therefore, a cost-sharing arrangement between
the beneficiaries and the government.
“The GES scheme saved the Federal
Government N25bn in funds it would have
needed to give fertiliser and seed contracts, as
fertiliser companies and seed companies were
also able to raise financing for their products
from banks, through a guarantee facility for
their loans issued by the Federal Ministry of
Finance,” Adesina informed.”
According to the minister, the ministry ended
the corruption of four decades in 90 days.
He added, “We took the government out of
direct procurement and distribution of
fertilisers. Today, seed and fertiliser companies
sell their products directly to farmers, instead of
to the government. To ensure that only genuine
farmers got the subsidised seeds and fertilisers,
we put in place the first ever database of
farmers in the history of Nigeria. In 2012, we
started with the registration of 4.2 million
farmers. This will be increased in 2013, and
2014 by an additional 10 million farmers, so that
within three years Nigeria will have a full
database of its estimated 14 million farmers.
Because we will have their full biometric
information, it is now possible to reach them
directly with subsidised agricultural inputs
thereby cutting off the exploitation of
middlemen and corrupt bureaucrats.”
Adesina said the GES had been a success,
noting that “the system had also worked
successfully.
“For the first time ever, we can actually tell you
which farmers received which inputs, when they
did, how much they paid and how much the
government paid. Within 120 days of launch of
the GES, over 1.2 million farmers successfully
redeemed their seeds and fertilisers using the
electronic wallet system. Over 90 per cent of the
beneficiaries were from the North: North
Central (197,000 farmers), North East (234,821
farmers), North West (560,932 farmers), South
East (31,175 farmers), South South (62,213); and
South West (31,070 farmers). The reason for the
low levels in the South was due to the early start
of the rains, as farmers had planted before the
program was launched. This will be improved
upon in 2013. By the end of the current dry
season, we expect to have reached 1.7 million
farmers,”he explained.
On future plans, he said, “Wee intend to reach
five million farmers with GES via e-wallets in
2013 and deliver our farmers completely from
the hands of shylocks. This battle of deliverance
of farmers started in 2012, when we developed
the GES. Under the scheme, farmers received
50 per cent subsidy for fertilisers and 100 per
cent subsidy for improved seeds. To reach the
farmers directly, we used the power of mobile
phones in their hands. “Farmers received
subsidized seeds and fertiliser vouchers on their
mobile phones – or electronic or e-wallets-
which they use just like cash to buy seeds and
directly from the agrodealers. Instead of the old
system where government used general
subsidies which allowed anyone to buy
subsidized seeds and fertilizers, this time only
registered farmers received subsidies from
government. Nigeria is the first country in
Africa to launch an electronic wallet system for
the delivery of subsidized inputs to farmers.”
The minister urged participants at the train-the-
trainer workshop, which included the regional
directors, state directors, farmers groups,
commodity organisations and other programme
managers to work harder in implementing the
2013 GES scheme.
“I urge you all to work very hard to ensure that
2013 is a year of massive success for the
agriculture sector, building up on the great
strides made in 2012. We must produce what we
eat and eat what we produce. We must support
our farmers and not leave them in the hands of
opportunists that masquerade as lovers of
farmers, but are actually those that have
enshrined corruption and cheated farmers for
decades. This year shall be a year of greater
deliverance for Nigerian farmers.”. www.punchng.com/news/agric-enhancement-scheme-saved-n25bn-in-2012-adesina/