AGRICULTURAL POLICY INSTABILITY IN NIGERIA: THE RICE AGRICULTURAL POLICY INSTABILITY IN NIGERIA: THE RICE FARMERS’ EVER ADJUSTING PRODUCTION PROCESS FARMERS’ EVER ADJUSTING PRODUCTION PROCESS By By Umeh, J.C. Umeh, J.C. Consultancy Marketing specialist, National Special Consultancy Marketing specialist, National Special Programme for Food Security (NSPFS), Maitama, Abuja, Programme for Food Security (NSPFS), Maitama, Abuja, Nigeria. Nigeria. Ingawa, S.A. Ingawa, S.A. National Project Coordinator, National Special Programme National Project Coordinator, National Special Programme for Food Security (NSPFS), Abuja, Nigeria. for Food Security (NSPFS), Abuja, Nigeria. Oyebanji, O.O. Oyebanji, O.O. Annex I Leader, National Special Programme for Food Annex I Leader, National Special Programme for Food Security (NSPFS), Abuja, Nigeria. Security (NSPFS), Abuja, Nigeria. Adesola, O.A. Adesola, O.A. Annes IV Leader, National Special Programme for Food Annes IV Leader, National Special Programme for Food Security (NSPFS), Abuja, Nigeria and Director Strategic Security (NSPFS), Abuja, Nigeria and Director Strategic Grain Reserve (SGR) Grain Reserve (SGR)
Transcript
Slide 1
AGRICULTURAL POLICY INSTABILITY IN NIGERIA: THE RICE FARMERS
EVER ADJUSTING PRODUCTION PROCESS By Umeh, J.C. Consultancy
Marketing specialist, National Special Programme for Food Security
(NSPFS), Maitama, Abuja, Nigeria. Ingawa, S.A. National Project
Coordinator, National Special Programme for Food Security (NSPFS),
Abuja, Nigeria. Oyebanji, O.O. Annex I Leader, National Special
Programme for Food Security (NSPFS), Abuja, Nigeria. Adesola, O.A.
Annes IV Leader, National Special Programme for Food Security
(NSPFS), Abuja, Nigeria and Director Strategic Grain Reserve
(SGR)
Slide 2
PRESENTATION LAY OUT A. INTRODUCTION - The potentials for Rice
enterprise in Nigeria - Favorable ecologies for rice cultivation -
Agricultural policy of Nigeria, problems statement, objectives and
methodology. - The data/paucity of rice enterprise data sources B.
Results and Discussions C. Conclusions and Recommendations
Slide 3
1.GROWING PER CAPITA RICE CONSUMATION IN NIGERIA - 1960 3 kg
per capita - 1980 18 kg per capita - 1990 22 leg per capital THE
POTENTIALS FOR RICE ENTERPRISE IN NIGERIA
Slide 4
2. FAVOURABLE ECOLOGIES FOR RICE CULTIVATION Upland irrigated
Upland irrigated Inland valley swamp Inland valley swamp Deep
water/floating and tidal mangrove swamp Deep water/floating and
tidal mangrove swamp 4.6 million hectares for rice production in
Nigeria 4.6 million hectares for rice production in Nigeria Only
1.7 million ha only put to rice cultivation Only 1.7 million ha
only put to rice cultivation
Slide 5
3. AGRICULTUAL POLICY OF NIGERIA AND PROBLEM STATEMENT Self
sufficient in rice production for home and export Self sufficient
in rice production for home and export Agricultural policy launched
in 1989 for self sufficiency in rice production in ten years time
Agricultural policy launched in 1989 for self sufficiency in rice
production in ten years time In 1999, 812, 452 MT rice import about
10 years after the Nigeria government launching of the agricultural
police document In 1999, 812, 452 MT rice import about 10 years
after the Nigeria government launching of the agricultural police
document Conflict and contradiction therefore exist in the rice
industry. Conflict and contradiction therefore exist in the rice
industry.
Slide 6
OBJECTIVES AND METHODOLOGY 1. To use secondary data of over 30
years and inferential statistics to analyze the constrained growth
of rice enterprise in Nigeria. 2. To quantify the impact of
inconsistency government policy on the growth and development of
rice enterprise in Nigeria. 3. To make recommendations on some
possible way forward.
Slide 7
Table 1 shows the correlation coefficients of pairs of data
from various sources Large negative valves are seen calling for
concern for the quality of data. Large negative valves are seen
calling for concern for the quality of data. This problem has been
with us since the 1980s (Idachaba, 1984). This problem has been
with us since the 1980s (Idachaba, 1984).
Slide 8
Slide 9
1.THE DATA/PAUCITY OF RICE ENTERPRISE DATA FROM FOUR DATA
SOURCES The project co-ordination unit/ADP The project
co-ordination unit/ADP The Central Bank of Nigeria The Central Bank
of Nigeria The FAO yearbook The FAO yearbook The three pre-shipment
companies Societ General de Surveillance, SWEDE control inter TEK
and COTECNA inspection Ltd Nigeria. The three pre-shipment
companies Societ General de Surveillance, SWEDE control inter TEK
and COTECNA inspection Ltd Nigeria.
Slide 10
3. RESULTS AND DISCUSSIONS Data for over 34 years were
generated and used for this work Data for over 34 years were
generated and used for this work Figures 1 and 4 show import rice
volume and domestic rice yield trends of 34 years, 1970-2004
Figures 1 and 4 show import rice volume and domestic rice yield
trends of 34 years, 1970-2004 Inference. Import volume continued to
increase while yield continued in a downward trend. Inference.
Import volume continued to increase while yield continued in a
downward trend. Correlation coefficient for the variables is 0.618
significant at 1% level. Correlation coefficient for the variables
is 0.618 significant at 1% level. Rice import depresses domestic
rice productivity Rice import depresses domestic rice productivity
Oxfam, British based NGO recently indicated the dumping of cheap
American rice on less developed countries of the world Oxfam,
British based NGO recently indicated the dumping of cheap American
rice on less developed countries of the world US gives $ 3 billion
in subsidies to prop up rice crop that costs $ 1.8 billion to grow
US gives $ 3 billion in subsidies to prop up rice crop that costs $
1.8 billion to grow Two key factors that may aid Nigerian rice
enterprise apart from problem of dumping of foreign rice, are
extension and fertilizer availability Two key factors that may aid
Nigerian rice enterprise apart from problem of dumping of foreign
rice, are extension and fertilizer availability
Slide 11
FIGURES 2 AND 4 SHOW IMPORT RICE PRICE AND RICE YIELD. BOTH
HAVE DOWNWARD TRENDS Imported rice continued to come at cheaper
rate discouraging domestic rice production Imported rice continued
to come at cheaper rate discouraging domestic rice production
Correlation coefficient of the two variables is o.713, it is
positive and significant at 1% level Correlation coefficient of the
two variables is o.713, it is positive and significant at 1% level
Both variables move in the same direction as shown in Figure 6.
Both variables move in the same direction as shown in Figure 6.
Furthermore, the correlation coefficient of prices of both
domestically produced rice and imported rice was computed to be _-
0.563, It is negative and significant. For example imported rice
price (figure 2) continued to decrease after the peak about 1976.
Furthermore, the correlation coefficient of prices of both
domestically produced rice and imported rice was computed to be _-
0.563, It is negative and significant. For example imported rice
price (figure 2) continued to decrease after the peak about 1976.
Given the cheap, well packaged foreign rice, Nigerian consumer
rightly regarded poorly packaged, poorly processed local rice an
expensive commodity. Given the cheap, well packaged foreign rice,
Nigerian consumer rightly regarded poorly packaged, poorly
processed local rice an expensive commodity.
Slide 12
Slide 13
Slide 14
Slide 15
Figure 3 shows hectarage trend of domestically produced rice:
1970 2004. Trend is increasing from the low level in 1970. Trend is
increasing from the low level in 1970. It shows the good intension
of the Nigerian rice farmer to respond to the rising preference of
Nigerian consumer in favor of rice. It shows the good intension of
the Nigerian rice farmer to respond to the rising preference of
Nigerian consumer in favor of rice. This world have triggered off
growth and development of rice enterprise in Nigeria leading to:
This world have triggered off growth and development of rice
enterprise in Nigeria leading to: Employment generation Employment
generation Boosting of income Boosting of income Improvement of
life quality Improvement of life quality Food security Food
security Foreign exchange earning Foreign exchange earning
Slide 16
Slide 17
These benefits eluded the Nigerian farmers and Nigeria as a
whole as a result of: These benefits eluded the Nigerian farmers
and Nigeria as a whole as a result of: - Oscillating import tariffs
and import restrictions of foreign rice (1986 1990s rice import was
illegal; 1995 a tariff of 100% was placed; 1996 tariff of 50 % was
placed in 2001 tariff was increased to 85 %) - Poor extension
activity - Scarcity of fertilizer etc
Slide 18
Coefficient of variation of rice hectarage in Nigeria 1970 2004
was large (79.58%). For about 34 years there was violent variation
in rice hectarage cultivation in Nigeria. It shows the continuous
rice production adjustment process by Nigerian rice farmers as
government put up various phases of policy intervention in the
industry.
Slide 19
Few more policy implications of the 35 year rice enterprise
data analysis. Few more policy implications of the 35 year rice
enterprise data analysis. Nigerian rice farmers demonstration of
response readiness for the huge tastes and preferences of Nigerian
consumers for rice Nigerian rice farmers demonstration of response
readiness for the huge tastes and preferences of Nigerian consumers
for rice This is quantified in the large hecatarage of cultivable
land for rice. This is quantified in the large hecatarage of
cultivable land for rice. It is also shown in the huge rice output
when government policy titled in favor of domestic rice production
It is also shown in the huge rice output when government policy
titled in favor of domestic rice production Rice production,
processing and marketing involve long chain of activities. Rice
production, processing and marketing involve long chain of
activities. Land preparation, broadcasting of seed, fertilizer
application, weeding etc Land preparation, broadcasting of seed,
fertilizer application, weeding etc Women and children take part in
many of the activities and they are the vulnerable group of the
society in terms of income, food security etc. Women and children
take part in many of the activities and they are the vulnerable
group of the society in terms of income, food security etc.
Development of rice program in Nigeria may therefore go a long way
fighting hunger and poverty Development of rice program in Nigeria
may therefore go a long way fighting hunger and poverty Efforts of
the Nigerian government to develop rice enterprise include: Efforts
of the Nigerian government to develop rice enterprise include: -
NAPPP National Accelerated Food Production Programme (NAFPP) 1972.
It was to design, test and transfer technology package for
accelerated production of five crops rice, maize, sorghum, millet
and wheat. The efforts failed due to funding and policy
reversal.
Slide 20
The Presidential Rice Production Programme of President Shagari
regime of the early 1980s. This failed again as a result of
military over-throw. Next and a more current one is the
Presidential Initiative on Rice: This was launched in June 2005 in
Abuja. For this programme, the New Rice for Africa (NERICA)
developed by WARDA is to propel rice enterprise development in
Nigeria with the full complement of other inputs (Fertilizer,
extension etc) to ensure that rice plays the expected role in the
economic development of both Nigeria and the sub-region. Properties
of NERICA: Early maturing; high yielding disease and pest
resistant, acid tolerant, etc.
Slide 21
Conclusion and Recommendations Given the huge tastes and
preferences which the Nigerian population has shown in favor of
rice commodity, the continuous rice importation into Nigeria could
be likened to throwing away a golden opportunity to revive the
Nigerian agriculture through the rice industry. All the basic
requirements which set an enterprise on a path of growth and
development are complete in the rice industry.
Slide 22
There is the huge demand, there is equally good internal and
external markets and there is also a good ecology for the crop.
Another favorable conditions for rice as a crop that may
revolutionalize not only the agricultural industry but the whole
Nigerian economy include the long chain of economic activities
associated with rice production, processing and marketing and also
be ready employment for the very vulnerable segments of the
Nigerian population women and children.
Slide 23
Another favorable conditions for rice as a crop that may
revolutionalize not only the agricultural industry but the whole
Nigerian economy include the long chain of economic activities
associated with rice production, processing and marketing and also
be ready employment for the very vulnerable segments of the
Nigerian population women and children.
Slide 24
Recommendations The following recommendation emerge from the
analysis carried out in this study. 1. The Government should
consistently purse the policy of self sufficiency in food crop
production in particular with reference to those food commodities
which consume considerable shares of Nigerian foreign exchange and
which Nigeria has comparative advantage for their production, rice
is therefore the crop of choice within this context. 2. The
Presidential Initiative on Rice which uses the NERICA should be
consistently supported by the Government
Slide 25
3. Appropriate tariff regime, rather than an out right ban on
rice import should be evolved to protect the domestic rice
enterprise. 4.The Federal Government of Nigeria Fertilizer Market
Stabilization Programme which ensures availability of the input to
the Nigerian farmers should be pursued very diligently.
Slide 26
5.The extension activities of the ADPS which guide both the
technique and material technologies used by the farmers should be
revived. 6.The long chain of activities in the rice enterprise
though useful as a source of employment and income for the
vulnerable segment of the Nigeria society by may be counter r
productive as the rice enterprise grows; the Government should
provide money to both the Universities and Research Institutes for
research on some labour sowing device for rice processing.
Slide 27
LADIES AND GENTLEMEN, GOD HAS GIVEN US A CROP (RICE) WITH WHICH
TO REVOLUTIONALISE OUR ECONOMY, LET US NOT THROW AWAY THIS
OPPORTUNITY. THANKS FOR YOUR ATTENTION.