The Growth Enhancement Scheme for food production initiated by the former administration has suffered a setback as most of the incentives have been suspended due to lack of funds; ANNA OKON writes

The Growth Enhancement Support scheme in its heyday was an insignia of pride and achievement for the Ministry of Agriculture and Rural Development, under the leadership of former minister, Dr. Akinwumi Adesina, who is now the President of African Development Bank.

The scheme, launched in 2012 as part of the Agriculture Transformation Agenda of the Goodluck Jonathan administration, was aimed at achieving food security, youth and women empowerment, increasing income for farmers as well as curtailing the activities of middlemen in the sale and distribution of fertilizers and seedlings in the country.

While speaking on the topic, “transforming Nigeria’s agriculture” at the inauguration of the Agriculture and Food Security Center of the Earth Institute of Columbia University in New York in September 2013, Adesina listed the gains from GES and ATA, noting that the agricultural sector had witnessed a major transformation since he became a minister.



He said, “Within the first 90 days of my term as minister, we ended four decades of fertilizer sector corruption. We launched the Growth Enhancement Support scheme to provide subsidised inputs to farmers. To reach farmers directly with seeds and fertilizers, we developed the Electronic Wallet System, which allows farmers to receive subsidised electronic vouchers for their seeds and fertilizers on their mobile phones. Nigeria is the first country in Africa – possibly in the world – to develop the electronic wallet system for targeting farmers with subsidised farm inputs.

“The system worked successfully. In 2012, 1.5 million smallholder farmers got their subsidised seeds and fertilizers using their mobile phones. This had an impact on 7.5 million persons. So far this year (2013), over 3.5 million farmers have received their subsidised inputs via the Electronic Wallet Scheme. We have expanded the GES programme beyond crops to provide support for fisheries, livestock and mechanization services. To reach even more farmers, we embarked on the nation’s first ever registration of farmers. This year, we registered 10 million farmers. Farmers now have identity cards that allow us to use their biometric information to target them more effectively.”

The scheme, according to the minister, accounted for food production which witnessed a boost in 2014/2015.

Unfortunately, as it so often happens with most government projects, GES appears to have been run on credit.  By the time a new administration took over in May 2015, a backlog of unpaid debts to fertilizer and seed companies, running into billions of naira had accumulated.

Suppliers under the aegis of Farm Inputs Suppliers Association of Nigeria approached the new administration in May 2015 with an appeal to the government to pay its own portion of the subsidy.

According to them, the amount outstanding to date, being the subsidy portion of Federal and State Governments for which payment was yet to be paid to fertilizer suppliers was about N52bn.

Following the controversy and the huge debt surrounding the scheme, the Federal Government, exactly a year later, in May 2016, announced that it was withdrawing subsidy on fertilizer. The decision did not go down well with farmers as most of them withdrew from the farms.

The Director-General, Nigerian Textile, Garments and Tailoring Employers Association, Mr. Hammed Kwajaffa, said since the suspension of fertilizer subsidy to farmers, the price of cotton had escalated as the product became very scarce because cotton farmers had refused to go back to the farms.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said the cost of GES scheme had become too heavy for government to bear.

According to him, the GES arrears were being paid by the government out of sympathy and responsibility towards agro dealers.

“We had to look for money from our own sources at the federal level to bear the liabilities of states,” he said.

Ogbeh, who spoke in reaction to an online publication alleging N2bn GES payment bribery against the ministry, said, “When we arrived here, we were told the bill for seeds alone was N9bn and I said, ‘No, I am a farmer, how could you have supplied seeds worth N9bn?’ We scrutinised the invoices and we were able to prune the bill down to N2.5bn. I am shocked that these same people who submitted fictitious invoices with over N6bn inflated claims are now smearing my name.

“The GES payment was a debt we inherited from the previous administration. The total debt was N57bn. When we arrived here, the agro dealers said they couldn’t operate because they didn’t have bulk money to carry on with their businesses and so we applied to government and appealed for help to raise some money to pay the debt.

“The Federal Government gave us N20bn to pay part of the debt to agro dealers and fertilizer suppliers. When the money got to the Ministry of Finance, they decided that they would handle the payments and the Accountant General of the Federation made the payments.  The money never got to the agriculture ministry and we are happy they decided to handle the payment.”

The scheme suffered additional setback when the 36 states of the federation decided to pull out of it, according to a recent statement from the agriculture ministry which   indicated that states had pulled out of the scheme, making it clear that they had no money to contribute due to their low revenue levels.

The development is bound to deal a blow to crop production thereby worsening the food scarcity situation and escalating cost of essential food stuff in the country, according to the Executive Secretary, Fertilizer Suppliers Association of Nigeria, Ahmed Rabiu-Kwa.

Already, major agriculture food produce which also serve as food staples for Nigerians, such as rice, beans, and garri had witnessed more than 50 per cent increase in price in the past few months with rice increasing from N7500 in 2015 to N18000 in May for 50kg bag. Yam increased from N400 a tuber to about N1500 while a measure of garri now sells for N450 against the former price of N250.

However, the Country Manager, Harvest Plus, Mr. Paul Ilona, has supported the move by government to end the subsidy payment.

Ilona noted that in view of the global oil slump and Nigeria’s poor financial state, it was not economically wise for government to continue bearing the cost of the scheme.

He said, “With the current economic situation in the country, it will not pay government to continue to support the scheme.

“The subsidy was meant to boost demand for fertilizers and make farmers appreciate the need to grow crops with fertilizers. It was not supposed to be a continuous programme.

“There are plenty seed and fertilizer companies in Nigeria and farmers who are serious about their crop yield will have to buy their fertilizers without waiting for government.”

According to him, although the scheme may prompt some farmers who have no means to buy fertilizers to go back to farming without fertilizers, there are also a lot of firms and individuals who are taking advantage of the global economic meltdown and investing in agriculture.

He said, “The global fall in crude oil prices has forced many people who hitherto kept their money in the banks to withdraw the money and invest in agriculture. These people will buy fertilizers and they will push food into the market. In a very short while the situation with food scarcity will ease.”

He added that the activities of these people will make up for the gap in crop production.


http://punchng.com/food-scarcity-looms-lack-funds-threatens-agric-scheme/

Budget no reach Agric sector again nii??


Eleyii tuu super o!

I learned minister of agriculture,audu ogbe,recently demanded #2b bribe before he could award contract.

Chaiiiiiiiiiii

Even if hunger kills them, the AFONJAs in the South West will still defend Buhari's demonic policies.

Just watch them accuse the writer of the post and the OP for saying the truth

The Minister of Agriculture and Rural Development, Chief Audu Ogbe and the Minister of State in the ministry, Senator Heineken Lokpobiri, have been named in a N2 billion bribery scandal. This is coming in spite of the anti-corruption posture of the President Mohammadu Buhari-led Federal Government.

Pointblanknews.com uncovered a bribery scheme by the two ministers concerning a recent part-payment of N15 billion to contractors owed by the ministry. The contractors executed projects under the fertilizer subsidy programme, Growth Enhancement Support Scheme (GESS), introduced by the administration of former President Goodluck Jonathan in order to enhance farmers’ access to subsidised fertilizer.

The amount is part of a N56 billion debt owed the contractors by the Federal and state governments participating in the programme but the ministry is in charge of payments to contractors.


All participating states gave an Irrevocable Standing Order (ISO) for their portion (25%) of the Subsidy amount to be deducted directly from their statutory monthly allocation from the federation account as due. The Federal Ministry of Agriculture & Rural Development (FMARD), as the agency in charge of the administration of the program has the responsibility of coordinating, managing and effecting the payment of the subsidy to all participating inputs supplier companies.


The Growth Enhancement Support Scheme (GESS) is a Federal government initiative aimed at subsidising the costs of major agricultural inputs, such as fertilizer and seedlings for farmers, yam tubers and yam plantation, yam tubers and yam plantation based on the GESS policy, the federal and state governments equally contribute the balance of 50 percent being the approved subsidy amount for onward payment to participating inputs (fertilizer) suppliers.

The Farm Inputs Suppliers Association of Nigeria (FUISAN ), is the association that made the programme successful.

But following the release of N350 billion by government for the payment of contractors owed by government as contained in the 2016 budget, the Ministry of Agriculture and Rural Development was allocated funds including N15 billion to effect the part-payment to over 50 contractors owed by the ministry.

Following the release of the money to the ministry, the two ministers called a meeting of all the contractors owed by the ministry in Abuja. At the meeting, Chief Ogbeh confirmed the release of some funds to the ministry including N15 billion being part-payment for work done by the contractors, most of which were carried out in 2014.

The contractors were assured that payment would be made in such a way to cover all the contractors owed by the ministry pending the release of more funds by government. The ministers assured the contractors that they would be paid on “pro-rata” basis. But to the chagrin of the contractors, the ministry expended the N15 billion on only three contractors, one of which was Notore Chemicals PLC, a fertilizer and agro-allied company linked to Chief James Ibori who is currently serving jail time in U.K for corruption.

Pointblanknews.com investigations showed that the payment was a product of a decision to deduct N2 billion from source and concentrate the payment on only three contractors, who were part of the deal. The three contractors were paid N13 billion leaving in the lurch the rest of the contractors, who were earlier promised payment on pro-rata basis.

A group, Society for Good Governance (SGG), is therefore asking the Independent Corrupt Practices and Other Related Crimes Commission (ICPC) to investigate the payment.

“We are, by this petition, asking the ICPC to carry out a comprehensive investigation into the payment to determine why the ministers and the permanent secretary reneged on the earlier arrangement to pay all the contractors who have been owed for many years now and decided to pay only three contractors.

“We urge you to look into the deal between the two ministers, the permanent secretary and the three contractors that resulted in the payment of N13 billion to them. What happened to the remaining N2 billion. Why renege on the payment of the other contractors?”, the group queried.

A source familiar with the development told Pointblanknews.com that the decision to pay only three contractors a whooping N15 billion was curious after the minister had promised to expend the part-payment on all the contractors involved.

“The question on everybody’s lip is why pay only three contractors after the agreement that all the contractors would be captured . These are people who collected bank loans to execute these projects. The initial amount borrowed has not been paid and they are not even talking about the interest that has gone out of the roof after many years”, the source said.

Source: pointblanknews.com

Love Machine:
The Minister of Agriculture and Rural Development, Chief Audu Ogbe and the Minister of State in the ministry, Senator Heineken Lokpobiri, have been named in a N2 billion bribery scandal. This is coming in spite of the anti-corruption posture of the President Mohammadu Buhari-led Federal Government.

Pointblanknews.com uncovered a bribery scheme by the two ministers concerning a recent part-payment of N15 billion to contractors owed by the ministry. The contractors executed projects under the fertilizer subsidy programme, Growth Enhancement Support Scheme (GESS), introduced by the administration of former President Goodluck Jonathan in order to enhance farmers’ access to subsidised fertilizer.

The amount is part of a N56 billion debt owed the contractors by the Federal and state governments participating in the programme but the ministry is in charge of payments to contractors.


All participating states gave an Irrevocable Standing Order (ISO) for their portion (25%) of the Subsidy amount to be deducted directly from their statutory monthly allocation from the federation account as due. The Federal Ministry of Agriculture & Rural Development (FMARD), as the agency in charge of the administration of the program has the responsibility of coordinating, managing and effecting the payment of the subsidy to all participating inputs supplier companies.


The Growth Enhancement Support Scheme (GESS) is a Federal government initiative aimed at subsidising the costs of major agricultural inputs, such as fertilizer and seedlings for farmers, yam tubers and yam plantation, yam tubers and yam plantation based on the GESS policy, the federal and state governments equally contribute the balance of 50 percent being the approved subsidy amount for onward payment to participating inputs (fertilizer) suppliers.

The Farm Inputs Suppliers Association of Nigeria (FUISAN ), is the association that made the programme successful.

But following the release of N350 billion by government for the payment of contractors owed by government as contained in the 2016 budget, the Ministry of Agriculture and Rural Development was allocated funds including N15 billion to effect the part-payment to over 50 contractors owed by the ministry.

Following the release of the money to the ministry, the two ministers called a meeting of all the contractors owed by the ministry in Abuja. At the meeting, Chief Ogbeh confirmed the release of some funds to the ministry including N15 billion being part-payment for work done by the contractors, most of which were carried out in 2014.

The contractors were assured that payment would be made in such a way to cover all the contractors owed by the ministry pending the release of more funds by government. The ministers assured the contractors that they would be paid on “pro-rata” basis. But to the chagrin of the contractors, the ministry expended the N15 billion on only three contractors, one of which was Notore Chemicals PLC, a fertilizer and agro-allied company linked to Chief James Ibori who is currently serving jail time in U.K for corruption.

Pointblanknews.com investigations showed that the payment was a product of a decision to deduct N2 billion from source and concentrate the payment on only three contractors, who were part of the deal. The three contractors were paid N13 billion leaving in the lurch the rest of the contractors, who were earlier promised payment on pro-rata basis.

A group, Society for Good Governance (SGG), is therefore asking the Independent Corrupt Practices and Other Related Crimes Commission (ICPC) to investigate the payment.

“We are, by this petition, asking the ICPC to carry out a comprehensive investigation into the payment to determine why the ministers and the permanent secretary reneged on the earlier arrangement to pay all the contractors who have been owed for many years now and decided to pay only three contractors.

“We urge you to look into the deal between the two ministers, the permanent secretary and the three contractors that resulted in the payment of N13 billion to them. What happened to the remaining N2 billion. Why renege on the payment of the other contractors?”, the group queried.

A source familiar with the development told Pointblanknews.com that the decision to pay only three contractors a whooping N15 billion was curious after the minister had promised to expend the part-payment on all the contractors involved.

“The question on everybody’s lip is why pay only three contractors after the agreement that all the contractors would be captured . These are people who collected bank loans to execute these projects. The initial amount borrowed has not been paid and they are not even talking about the interest that has gone out of the roof after many years”, the source said.

Source: pointblanknews.com

somebody sai baba.

May the Lord restore Nigeria to Health in Jesus Name.. Amen!

The citizens will soon be blamed for not farming at their backyard.

Thank God its punch.

God will surely heal the wound of this Nation.

52 billion naira subsidy debt for fertilizer is a better bone to swallow than the trillions owed oil markets. The quadrillions of naira & dollars this APC led govt claim to have collected from yam eaters and Dasukigate people will not shake if 52 billion naira is removed to settle fertilizer subsidy while the ministries of agric & finance sanitizes that sector. Idiocy is when you throw a baby out with the bath water in this case it's stopping fertilizer (and pesticides) subsidy because of these paltry billions compared to others knowing fully well it affects a critical sector of the economy and populace. This year alone we've had tomato Ebola, what about next year going forward ?

God appointed time of New Nigeria is NOW!!

RZArecta:
52 billion naira subsidy debt for fertilizer is a better bone to swallow than the trillions owed oil markets. The quadrillions of naira & dollars this APC led govt claim to have collected from yam eaters and Dasukigate people will not shake if 52 billion naira is removed to settle fertilizer subsidy while the ministries of agric & finance sanitizes that sector. Idiocy is when you throw a baby out with the bath water in this case it's stopping fertilizer (and pesticides) subsidy because of these paltry billions compared to others knowing fully well it affects a critical sector of the economy and populace. This year alone we've had tomato Ebola, what about next year going forward ?

Do u know that money can build a world class fertilizers plant??

What sin did we commit in Nigeria?

Ministry of Information can never be starved of funds because propaganda must be disseminated. Na like ds dem wan diversify economy? Hehehe ds change is amazing!

mrvitalis:

Do u know that money can build a world class fertilizers plant??

Nna nee onodu were osiso! The initiatives in place how has ds govt maintained it? What new thing have they built other than furnishing 100m naira house for EFCC boss?

Food scarcity is not looming.

Food scarcity is already here.

It is already evident.

The main producers of food are being wiped out in Benue, Nassarawa, Plateau, Taraba etc.

There's no way anyone can kill farmers in the magnitude that the Fulanis cattle rearers have been doing and still expect food production.

They have been killing them in hundreds and widely reported in local and international media but no one is thinking of the consequences.

It is already here.

Various ailments plague Nigeria simultaneously. All thanks to buhari.

Thanks to the dullard


Buhari.

Buhari at the moment

mrvitalis:

Do u know that money can build a world class fertilizers plant??

there are fertilizer manufacturers already operating in Nigeria, what the govt was complaining about is the "huge" 52 billion naira subsidy and I think that is crass. It's better to subsidize agric sector than the petroleum and if you think there's fraud, you implement reforms i.e. ministry of finance & agriculture coming together to trash things out and releasing a blueprint. This tomato scarcity we're facing now is simply due to governments ineptitude in the agric sector, we don't know what else we'll face tomorrow

Almajiri1:
Various ailments plague Nigeria simultaneously. All thanks to buhari.

na wa oo, i tot ineffectual buffoon should be blame on this, accumulating debt for pmb to clear, fuel subsidy,fertilizer subsidy,dollar subsidy, sure.p, amnesty program fund, road contrators, amcon, pension fund, state govt bailout, etc God bless pmb