Lagos acquires 50 hectares of land in Abuja, and Ogun to cultivate food

The Governor of Lagos State, Mr Babatunde Fashola (SAN) has revealed that the state government has acquired about 50 hectares of land in Abuja and neighbouring Ogun State for cultivation of food to support its agriculture and job-creation scheme.

Fashola made this known on Wednesday while he was speaking about the state government’s agricultural scheme as he was presenting the states 2013 budget estimated at N497.277billion to the State House of assembly.

Admitting the challenge of limited land in the coastal city, the governor stated that “due to the limited amount of land the State has to cultivate, the administration is pursuing a radical alternative of acquiring land for farming outside Lagos.”

According to the Governor, “the administration has already secured 50 hectares in Abuja, and Ogun State which is four times bigger than Lagos in land size for cultivation.” He added that “other States such as Bauchi, Osun, Ekiti, Oyo and Katsina are favourably considering the State’s requests for farm lands.”

The administration is also cultivating 75 hectares of land for rice under its Rice for Jobs programme while the irrigation project to improve, yield and produce rice per hectare is progressing positively in Badagry.

Reeling out his administration’s further achievement in the agricultural sector, the governor stated that the 500 hectares of land was recently allocated for rice farming to feed the Imota Rice mill just as his administration has successfully completed the Imota Rice Mill in Ikorodu, the Erikorodo Feed Mill, the Erikorodo Chicken Processing Plant, also in Ikorodu and revitalized Ikorodu Fish Farm Estate.

The governor added that in Epe, the Agric Youth Empowerment Scheme is progressing with the training of a new batch of 200 graduates for whom the Executive Council recently approved the release of N500M that will be given to them shortly along with one hectare of land per farmer to enable them start formal production.

The Governor who also spoke about a very massive storm that hit Lagos on 17th August 2012 which adversely affected Kuramo beach, Goshen Beach Estate, Oniru Estate and Alpha Beach explained that the government has designed a coastal protection plan with its consultants from the Netherlands, that will stretch for about 7 kilometres to protect Kuramo, Victoria Island Extension, Oniru Estate, Goshen Beach Estate and Alpha Beach.

“It will cost about N40billion to implement it over at least two budgetary cycles. Without help, we are constrained to finance and implement the plan in phases to arrest the immediate threats and then deliver the protection” he said.

While noting that the Federal Government gave the State a B Risk categorization with a support of only N400million, Governor Fashola said the State viewing its risk problem differently has had to act expeditiously.

Breakdown of N497.277billion budget for 2013         

The 2013 budget comprised of capital expenditure of N268.364billion and recurrent figure of N139.173billion, exceeding the 2012 Budget by 1.08%.

The budget’s capital expenditure to recurrent ratio for the year 2013 is 54:46 as against 53:47 in 2012.

The sectorial allocation of the Budget in size and percentage are as follows: General Public Service- N114.076billion which amounts to 22.94%, Public Order & Safety- N18.799billion which is 3.78%, Economic Affairs-N156.273billion which is-31.43%,Environmental Protection-N44.131billion which is 8.87%, Housing & CommunityAmenities-N46.149billion which is -9.28%, Health- N42.498billion which is 8.55%, Recreation, Culture & Religion-N5.749billion which amounts to 1.16%, Education-64.343billion which is 12.94%, Social Protection-N3.259billion which amounts to 0.66%, Contingency-N2.000billion which is 0.44% all totalling N497.277billion.

The governor explained that in keeping faith with the promise that he made during the 2012 Budget presentation to gradually reduce the deficit and borrowing as the tenure approaches its terminal date, it has moved from a borrowing of N89 Billion in 2011 to N66 Billion in 2012 and now proposed a further reduction to N40Billion.

“The size of the deficit is reducing while our Consolidated Debt Service Account has grown to N60 Billion and will reach N95 Billion by the end of our tenure and that will be after we would have repaid the N50 Billion first tranche of the Bond Series”, he stated.

He also said the proposed deficit financing requirement for the 2013 Budget is N40.537billion which is 0.3% of the State’s GDP compared to 1.19% which was earmarked in 2012.

2012 budget implementation performance of 72%

The Governor also highlighted some of the challenges faced by the 2012 budget which included the depreciating value of the Naira against the Dollar which exchanged for N118 in 2007 and rose to N160 in 2012.

He drew attention to the high cost of funds represented by growing interest and borrowing rates, from about 10% in 2007 to 17% in 2011, which was an increase of 70%.

“At the end of the 3rd Quarter Budget presentation, we achieved an aggregate budget implementation performance of 72% for the period January to September 2012. The breakdown has been presented in our quarterly briefings as 65% in Q1, 84% in Q2 and 65% in Q3”.

He said although the State had recorded increases in its IGR, they did not increase by these percentage quantum, adding that in addition to these there were issues of increases to the pump prices of petrol which disrupted plans and the consequential need to re-price all contracts and projects that had been planned for implementation in order to ensure that the plans remained realistic and responsive to the dynamics that suddenly changed.

The Speaker of the State House of Assembly, Honourable Adeyemi Ikuforiji while speaking gave a commitment that the House of Assembly would give the necessary expeditious legislative consideration of the proposed Budget.....

www.channelstv.com/home/2012/10/31/lagos-acquires-50-hectares-of-land-in-abuja-and-ogun-to-cultivate-food/?utm_source=&utm_medium=twitter

Lagos is trying to feed everyone, big ups to the governor.

He added that “other States such as Bauchi, Osun, Ekiti, Oyo and Katsina are favourably considering the State’s requests for farm lands.

Fash dey vex for the food matter ooo..

Frankly, state governments have no business going into farming or any other business. Governments should create environments which would attract investments by true business entities, while informing citizens and investors alike, of the business opportunities which exist in the state.

Governments are yet to run a single successful business anywhere in Nigeria without enriching the government officials who manage those programs. This is what you get when you put a city manager equivalent, in charge of a state.

Pretty soon, states will start investing in airlines, McDonalds, and Fried Chicken franchises. Nonesense!!

ndu_chucks: Frankly, state governments have no business going into farming or any other business.

This is what you get when you put a city manager equivalent, in charge of a state.
Nonesense!!

But one of the functions of gov is food security, i think one of main characteristic of good gov is to do what private bodies dim not profitable but neccessary for her population, Nigerians do not like agriculture as many sees it as illitrate occupation, every body want to be an oil dealer, politician or do whitecolar job. also fedral gov policy does not favour it eg high intrest rate of about 15% with high cost of land and other factors.
Honestly i think if fedral and all states gov had make this your so called NONESENSE step all this while and maintained it, we would'nt have been the biggest inporter of food in Africa.

Therefore i will rather go for city managers than a state governor if city manager will be taking this kind of initiatives.

ndu_chucks: Frankly, state governments have no business going into farming or any other business. Governments should create environments which would attract investments by true business entities, while informing citizens and investors alike, of the business opportunities which exist in the state.

Governments are yet to run a single successful business anywhere in Nigeria without enriching the government officials who manage those programs. This is what you get when you put a city manager equivalent, in charge of a state.

Pretty soon, states will start investing in airlines, McDonalds, and Fried Chicken franchises. Nonesense!!

If the state don't invest, you will starve simply because the rich folks in your country are not investing in Agriculture and your youth prefer okada instead of farm labor. Somebody got to do it or we all starve....

Eko Ile:

If the state don't invest, you will starve simply because the rich folks in your country are not investing in Agriculture and your youth prefer okada instead of farm labor. Somebody got to do it or we all starve....

You are completely wrong about the above sir.

I totally agree that food security is important but I do not believe that the state should engage in Agribusiness under the guise of food security. The idea that if the states do not invest in Agriculture, people will starve is nonsensical and outright silly.

Full scale farming and Agribusiness do not primarily use the manual labor required for subsistence farming. Professionals with degrees such as Agricultural Engineering are required for such. That the youth would prefer Okada instead of working as Agric workers indicates that you are misinformed about the business.

Let me give you an example of what states and the Feds should be doing:

Nasarawa state has just recently pledged to support a $90 million investment, projected to be Africa’s largest rice farm established by Olam Nigeria Limited. The farm will cover 10,000 hectares of fully irrigated commercial farm in Rukubi-Ondorie area of Doma in Nasarawa State.

Companies such as Olam Farms should be the ones encouraged to farm in Ogun state and other places. Other states who are concerned about food security should emulate Nasarawa state. Companies such as Olam Nigeria Limited know the business and have a history of success. States have no business getting into such businesses.

What the FG is not doing, I believe Fashola will do justice to it

ndu_chucks:

You are completely wrong about the above sir.

I totally agree that food security is important but I do not believe that the state should engage in Agribusiness under the guise of food security. The idea that if the states do not invest in Agriculture, people will starve is nonsensical and outright silly.

Full scale farming and Agribusiness do not primarily use the manual labor required for subsistence farming. Professionals with degrees such as Agricultural Engineering are required for such. That the youth would prefer Okada instead of working as Agric workers indicates that you are misinformed about the business.

Let me give you an example of what states and the Feds should be doing:

Nasarawa state has just recently pledged to support a $90 million investment, projected to be Africa’s largest rice farm established by Olam Nigeria Limited. The farm will cover 10,000 hectares of fully irrigated commercial farm in Rukubi-Ondorie area of Doma in Nasarawa State.

Companies such as Olam Farms should be the ones encouraged to farm in Ogun state and other places. Other states who are concerned about food security should emulate Nasarawa state. Companies such as Olam Nigeria Limited know the business and have a history of success. States have no business getting into such businesses.

Common sense should tell you that the reason why Lagos state is buying land outside the state to feed itself is because we don't have enough land to farm and also that your olam farm went to Nasarawa instead of Lagos because Lagos don't have 10,000 acres of land like Nasarawa, it's not because Lagos don't welcome investments..

And it's even sillier to sit on your hand waiting for investors to invest and feed you before you feed yourself.

We are investing in our own agric infrastructures and our Agric institute is training and graduation the best farmers in Nigeria.


Don't worry, we got this..

@ Ndu_chucks

1. your simply twisting logic on it's head and also regurgitating some logic without putting it in proper perspective. You cannot not divorce government from business and investment. A responsible government takes initiative to drive/catalyze sectors that will positively impact on the people.
2. With all the lands in the country, how many private investors went into Agribusiness to sustain the present food gap.
3. Do you know that as far back in OBJ's day, the Chinese came here with a gaint ships for acelerated export of cassava, yet could hardly fill the ship on a single trip?(It is established that Nigeria is the largest producer of Cassava in the world, yet we are not producing up to 10% of the world demand)
4. Do you know that in the last few months, certain cummulative factors have driven average food prices up by 200%?
5. Who told you Lagos state was going it alone Lagos is noted to be the foremost driver of PPP even much more than the federal government.
6. Except we are lying to ourselves, you cannot divorce government from business. Even consulting firms like accenture had to rethink thier strategy few years back and started taking government contract.
7. The Minister of Agric, have been working with State governments that are serious in this area and these are some of the workings you're seeing.
8. For me, It is sheer intellectual laziness, to just jump into some warpped conclusions, without understanding the background and direction schemes like these are going. The Chinese, with there massive industrialization are one of the largest exporter of Apples, Fish, Buffalo milk for cheese etc. The Egyptians has 25% land, every other space is Nile and desert, yet they have much more food than us; not to talk of the Isreal, Zimbabwe, South Africa etc

ndu_chucks:

You are completely wrong about the above sir.

I totally agree that food security is important but I do not believe that the state should engage in Agribusiness under the guise of food security. The idea that if the states do not invest in Agriculture, people will starve is nonsensical and outright silly.

Full scale farming and Agribusiness do not primarily use the manual labor required for subsistence farming. Professionals with degrees such as Agricultural Engineering are required for such. That the youth would prefer Okada instead of working as Agric workers indicates that you are misinformed about the business.

Let me give you an example of what states and the Feds should be doing:

Nasarawa state has just recently pledged to support a $90 million investment, projected to be Africa’s largest rice farm established by Olam Nigeria Limited. The farm will cover 10,000 hectares of fully irrigated commercial farm in Rukubi-Ondorie area of Doma in Nasarawa State.

Companies such as Olam Farms should be the ones encouraged to farm in Ogun state and other places. Other states who are concerned about food security should emulate Nasarawa state. Companies such as Olam Nigeria Limited know the business and have a history of success. States have no business getting into such businesses.

You people still don't get it. Governments should not be running business corporations of any sort including joint ventures. Governments should govern and create enabling environments for corporations to conduct their businesses.

These kinds of schemes simply create billionaires (and corrupt looters) out of government officials and make running for office more deadly and violent. Everyone will be running for office to become as rich as Tinubu. for obvious reasons.

I fully support the four-year integrated Agricultural development programme to be undertaken by the Lagos State Government and Songhai Regional Centre, Porto Novo, Benin Republic to develop, equip and create job opportunities for farmers in the agricultural sector in the state.

I however, do not believe that the state should be running any business, period. The state is simply not equipped or trained to do so. Heck, states can hardly govern effectively.

My brother, What matters is that these kind of ventures are solving food crisis that will have deverstating impact in the next few years. Remember when even the investors messes up, it is still this same government that bails them out with tax payers money, so they are well within their right to rejig a failed business sector.

mapet: @ Ndu_chucks

1. your simply twisting logic on it's head and also regurgitating some logic without putting it in proper perspective. You cannot not divorce government from business and investment. A responsible government takes initiative to drive/catalyze sectors that will positively impact on the people.
2. With all the lands in the country, how many private investors went into Agribusiness to sustain the present food gap.
3. Do you know that as far back in OBJ's day, the Chinese came here with a gaint ships for acelerated export of cassava, yet could hardly fill the ship on a single trip?(It is established that Nigeria is the largest producer of Cassava in the world, yet we are not producing up to 10% of the world demand)
4. Do you know that in the last few months, certain cummulative factors have driven average food prices up by 200%?
5. Who told you Lagos state was going it alone Lagos is noted to be the foremost driver of PPP even much more than the federal government.
6. Except we are lying to ourselves, you cannot divorce government from business. Even consulting firms like accenture had to rethink thier strategy few years back and started taking government contract.
7. The Minister of Agric, have been working with State governments that are serious in this area and these are some of the workings you're seeing.
8. For me, It is sheer intellectual laziness, to just jump into some warpped conclusions, without understanding the background and direction schemes like these are going. The Chinese, with there massive industrialization are one of the largest exporter of Apples, Fish, Buffalo milk for cheese etc. The Egyptians has 25% land, every other space is Nile and desert, yet they have much more food than us; not to talk of the Isreal, Zimbabwe, South Africa etc

Hope he listens. My assignment for him is to go and and study the ideas that drove the 'green revolution'. Ndu-chucks simply loves being contrarian for the sake of it alone. In is indeed intellectually lazy to continue insisting Government must not be involved in the business of agriculture especially in an era when the sector is virtually failed and incapable of delivering perhaps the most important need of man i.e food security.

Government must get involved, physically and financially, to resurrect a vital sector and encourage wider participation for the benefit of Nigeria. Simple as that !! I really don't know how idealism leads some to ignore logical efforts of government predicated on veritable models that have delivered success world wide. This is not an agro-economic drive predicated on the concept of adding to businesses government engages in. It is a serious attempt to ensure we begin producing more of what we eat.

With investors shying away and uptake not particularly voluntary, it is only an irresponsible Government that would fold it's arm and watch the Nation become entirely reliant on import to feed its people. I am feeling generous today and will even give Ndu-Chucks some 'research indicators' for his assignment. We are more or less where others were when their Government decided to get involved , one way or the other, to improve food security for their people and reduce over-reliance on import.

http://en.wikipedia.org/wiki/Green_Revolution

In 1961 India was on the brink of mass famine.[3] Borlaug was invited to India by the adviser to the Indian minister of agriculture M. S. Swaminathan. Despite bureaucratic hurdles imposed by India's grain monopolies, the Ford Foundation and Indian government collaborated to import wheat seed from CIMMYT. Punjab was selected by the Indian government to be the first site to try the new crops because of its reliable water supply and a history of agricultural success. India began its own Green Revolution program of plant breeding, irrigation development, and financing of agrochemicals.[4]
India soon adopted IR8 – a semi-dwarf rice variety developed by the International Rice Research Institute (IRRI) that could produce more grains of rice per plant when grown with certain fertilizers and irrigation. In 1968, Indian agronomist S.K. De Datta published his findings that IR8 rice yielded about 5 tons per hectare with no fertilizer, and almost 10 tons per hectare under optimal conditions. This was 10 times the yield of traditional rice.[5] IR8 was a success throughout Asia, and dubbed the "Miracle Rice". IR8 was also developed into Semi-dwarf IR36.


Wheat yields in developing countries, 1950 to 2004, kg/HA baseline 500. The steep rise in crop yields in the U.S. began in the 1940s. The percentage of growth was fastest in the early rapid growth stage. In developing countries maize yields are still rapidly rising.[6]
In the 1960s, rice yields in India were about two tons per hectare; by the mid-1990s, they had risen to six tons per hectare. In the 1970s, rice cost about $550 a ton; in 2001, it cost under $200 a ton.[7] India became one of the world's most successful rice producers, and is now a major rice exporter, shipping nearly 4.5 million tons in 2006.

mapet: My brother, What matters is that these kind of ventures are solving food crisis that will have deverstating impact in the next few years. Remember when even the investors messes up, it is still this same government that bails them out with tax payers money, so they are well within their right to rejig a failed business sector.

When investors mess up, they should be allowed to go into bankruptcy and regroup. Bail out ko, loot out ni.


@Gbawe,I don't think you read all my posts. It is actually unreasonable to say that governments should not be involved in the Agric security of nations. The government has obvious roles. What I object to is the running of corporations by state governments in Nigeria - it breeds corruption, thieving officials, and former governors.

Investors are not shying away from Agric as you stated, I gave the example of Olam Farms in Nisarawa. There are others.

ndu_chucks:

When investors mess up, they should be allowed to go into bankruptcy and regroup. Bail out ko, loot out ni.


@Gbawe,I don't think you read all my posts. It is actually unreasonable to say that governments should not be involved in the Agric security of nations. The government has obvious roles. What I object to is the running of corporations by state governments in Nigeria - it breeds corruption and thieving officials, and former governors.

Investors are not shying away from Agric as you stated, I gave the example of Olam Farms in Nisarawa. There are others.

I'm sorry but you are saying total crap with your "government has no business being business". In the UK today, who owns the Royal Bank of Scotland? The UK government had to nationalize as a reesult of the crisis in the bank. It did it for social considerations. And this is the issue here, agriculture and food in Africa is not a business venture when there is a massive food shortage in the continent. It is a social and economic venture and government has every reason being involved to sway it towards feeding Africas growing population. The risk involved in Agriculture especially on the large scale needed to feed Africans is massive and there are few private investors who will take the risk to invest in such a venture. Furthermore, note that with increased output in such a sector comes lower profits and it is thus subject to fluctuating prices. If you say provide the grants to private the sector, then you are missing the problems that come with information assymetry.

Government has every business being in agriculture to sustain food production for Africa's growing population. The cost of an investor going bankrupt is not limited to that investor alone. There is a social cost that comes with such investors going down and government has no reason looking away. What risks is your Olam farms exposed to? That is the issue. The scale at which the Lagos government is moving in means taking a high risk that and should not be left to any private individual giving the social effects of failure.

I would ordinarily agree with ndu_chucks...I'm very much against the government interfering in things best left to the private sector.

But, for various reasons, the private sector is not sufficiently interested in industrial farming in Nigeria.

If it takes Lagos State's initiative to stimulate this sector of our economy and reduce importation of food, then perhaps the benefits will outweigh the costs.

Anyway, time will tell.

ballabriggs:

I'm sorry but you are saying total crap with your "government has no business being business". In the UK today, who owns the Royal Bank of Scotland? The UK government had to nationalize as a reesult of the crisis in the bank. It did it for social considerations. And this is the issue here, agriculture and food in Africa is not a business venture when there is a massive food shortage in the continent. It is a social and economic venture and government has every reason being involved to sway it towards feeding Africas growing population. The risk involved in Agriculture especially on the large scale needed to feed Africans is massive and there are few private investors who will take the risk to invest in such a venture. Furthermore, note that with increased output in such a sector comes lower profits and it is thus subject to fluctuating prices. If you say provide the grants to private the sector, then you are missing the problems that come with information assymetry.

Government has every business being in agriculture to sustain food production for Africa's growing population.

Please settle down and reread my posts, but more carefully. Multinationals conduct Agribusinesses even in your beloved UK and Scotland. Please point out a single Agric corporation owned by the government in UK or Scotland.

I will repeat for the umpteenth time that government has a major role to play but not that of actually running corporations. Government officials are simply untrained, unequipped, too inefficient and to do so.

ekt_bear: I would ordinarily agree with ndu_chucks...I'm very much against the government interfering in things best left to the private sector.

But, for various reasons, the private sector is not sufficiently interested in industrial farming in Nigeria.

If it takes Lagos State's initiative to stimulate this sector of our economy and reduce importation of food, then perhaps the benefits will outweigh the costs.

Anyway, time will tell.

I completely agree that the role of the government should include stimulating the Agric sector. What I am opposed to is the government itself running Agribusiness or directly running related corporations, especially in a country such as ours.

Elaborate.

What would you suggest is a better approach than the current one Lagos is taking?

If you allow investors to go into bankruptcy like that you're killing your country and your people. Check;
1. When banking sector messed up, Federal government came to the rescue with intervention funds and AMCON taking all the bad debts.
2. The federal government is about to start about 4 airlines/national cariers to rejig the aviation industry
3. When the bubble burst on the global economy, each country did not "allow investors to go to bankruptcy", each government brought out huge money to help restart sectors like banking, manufacturing,insurance etc

If there are no banks, no airlines, no manufacturing, no agric sectors to service the people etc what will the government govern

ndu_chucks:

When investors mess up, they should be allowed to go into bankruptcy and regroup. Bail out ko, loot out ni.


@Gbawe,I don't think you read all my posts. It is actually unreasonable to say that governments should not be involved in the Agric security of nations. The government has obvious roles. What I object to is the running of corporations by state governments in Nigeria - it breeds corruption, thieving officials, and former governors.

Investors are not shying away from Agric as you stated, I gave the example of Olam Farms in Nisarawa. There are others.

Btw, doesn't Singapore own cattle ranches in Australia?

The Singapore government.

Actually, it isn't every country where the mainstream belief is that government and corporations should be separated.

More of a Western philosophy...they don't do that in Singapore, Japan, etc.

ndu_chucks:

Please settle down and reread my posts, but more carefully. Multinationals conduct Agribusinesses even in your beloved UK and Scotland. Please point out a single Agric corporation owned by the government in UK or Scotland.

I will repeat for the umpteenth time that government has a major role to play but not that of actually running corporations. Government officials are simply untrained, unequipped, too inefficient and to do so.

That is the problem you guys have, you don't ask yourselves where they started from. At the early stages of the UKs development, the government was involved in a lot of ventures including agriculture. So make no mistake, if the UK had the food shortage we have in Nigeria today, the government will get involved the same way it has gotten involved in the RBS.

Let me give you an example of another critical sector imperative for development which is steel. Who is going to invest in such high-grade capital intensive project? The private sector? You must be joking if you think they will. The guys that bought Ajaokuta never took it beyond where they met it. In fact it was alleged that they ended up stripping Ajaokuta off its vital assets.

ekt_bear: Elaborate.

What would you suggest is a better approach than the current one Lagos is taking?

I gave the Nasarawa state example earlier. Let me provide additional details - this is one area where GEJ is actually working, but silently:

Nasarawa state has just pledged to support a $90 million investment projected to be Africa’s largest rice farm established by Olam Nigeria Limited. The farm will cover 10,000 hectares of fully irrigated commercial farm in Rukubi-Ondorie area of Doma in Nasarawa State. More Details Here

To support this new commercial farm, the federal government has pledged to resuscitate Abandoned Dams including the Doma dam which will support the said rice farm and others.

2000 hectares of land had been developed for sprinkler irrigation at Doma, and the funds for the purchase of pumps, generator and pipes had stalled the completion work on the irrigation project. GEJ has now pledged funding of the dam and many other dams across the country. See Report On President’s Pledge Here

As far as the doma dam is concerned, a consultant has already been chosen to understudy the electricity generation capacity of the dam and would soon be on site to commence work.

Note that the state government and Federal government is creating the environment for Olam Farms and others to succeed. The state is not running the farm but will benefit from employment and tax revenues.

Lagos State cannot indirectly support farms in other states through dams or whatever (since this costs money, but doesn't directly give benefit or even break even for LASG). And of course, the employment/tax revenues it generates in other states is not enough to sustain its support (for the same reason).

Within the state itself, land is limited.

So, your approach and others like it cannot work for LASG.

ballabriggs:


Let me give you an example of another critical sector imperative for development which is steel. Who is going to invest in such high-grade capital intensive project? The private sector? You must be joking if you think they will. The guys that bought Ajaokuta never took it beyond where they met it. In fact it was alleged that they ended up stripping Ajaokuta off its vital assets.

Your Ajaokuta example is the best case for why governments should not be running corporations. The government has been operating the Ajaokuta Steel outfit since 1970 wasting $billions, you unable to produce a single pin even after 30 years of operation.

So, Lagos's model isn't that unusual, it seems:

http://www.economist.com/node/13692889
http://www.crikey.com.au/2011/06/16/foreign-ownership-of-aussie-land-the-peril-of-selling-the-farm/

ekt_bear: Lagos State cannot indirectly support farms in other states through dams or whatever (since this costs money, but doesn't directly give benefit or even break even for LASG). And of course, the employment/tax revenues it generates in other states is not enough to sustain its support (for the same reason).

Within the state itself, land is limited.

So, your approach and others like it cannot work for LASG.

Ogbeni, I'm pretty sure you fully understood the points I raised. Nigerian state governments should not be running corporations, period.

ndu_chucks:

Your Ajaokuta example is the best case for why governments should not be running corporations. The government has been operating the Ajaokuta Steel outfit since 1970 wasting $billions, you unable to produce a single pin even after 30 years of operation.

lol government must run it if Nigeria is to develop. Run it as a state capitalist. It is because we are not ready that is why the government cannot run it. It is a sector imperative for development and no crazy private investor will pump such capital into such a venture at an infant stage. So who is going to do it if not the government?

So the government has pumped in billions into education for years, the standard remains poor and should therefore hands-off?

ndu_chucks:

Ogbeni, I'm pretty sure you fully understood the points I raised. Nigerian state governments should not be running corporations, period.

So we have two options:

(1) Lagos Government does only what it can do involving land within Lagos State.
(2) Lagos does (1), and also does what it can do in other states.

The only way for it to do (2) is to do it in a way that at least breaks even, yes? So what is so wrong with running your operation outside of Lagos as a corporation?

ndu_chucks:

I gave the Nasarawa state example earlier. Let me provide additional details - this is one area where GEJ is actually working, but silently:

Nasarawa state has just pledged to support a $90 million investment projected to be Africa’s largest rice farm established by Olam Nigeria Limited. The farm will cover 10,000 hectares of fully irrigated commercial farm in Rukubi-Ondorie area of Doma in Nasarawa State. More Details Here

To support this new commercial farm, the federal government has pledged to resuscitate Abandoned Dams including the Doma dam which will support the said rice farm and others.

2000 hectares of land had been developed for sprinkler irrigation at Doma, and the funds for the purchase of pumps, generator and pipes had stalled the completion work on the irrigation project. GEJ has now pledged funding of the dam and many other dams across the country. See Report On President’s Pledge Here

As far as the doma dam is concerned, a consultant has already been chosen to understudy the electricity generation capacity of the dam and would soon be on site to commence work.

Note that the state government and Federal government is creating the environment for Olam Farms and others to succeed. The state is not running the farm but will benefit from employment and tax revenues.

Ask Sanusi how much of his agriculture intervention fund has been repaid before you give more loans and grants out. The truth is such inefficiency you talk about can also be found in giving loans and grants as there is a moral hazard in giving out such loans.

....

@NDU_Chucks:

Some of the companies privatised are currently in COMA. Businessmen only invest where they perceive that there will be maximum Return On Investment (ROI) irrespective of whether it is necessary for survival.

In Nigeria currently, agriculture isn't seen by many investors as having a very high ROI. I think the state governments are doing the right thing if they invest in that sector considering its importance to the well-being of the populace. When private interests in that area is sufficient to take care of the needs of the populace, govt will definitely stop being involved fully in the sector.

What we should be asking for is transparency in the dealings of the establishment, as well as implementation of best practices in their policy formulation ‎​Άnd implementation...