Paucity of funds threatens government’s plan to diversify into agric

Fears rise over food shortage as fertilizer’s price hits rooftop

Paucity of funds is affecting the Federal Government’s plan to diversify into agriculture.

This is creating fears that there could be food shortages next year, even as farm inputs, were not supplied to the farmers before the rains commenced in May. The farmers therefore, had to source them at the open market.

Checks also revealed that Federal Government’s inability to pay-off agro dealers that supplied farm inputs to farmers during the 2014 farming season generated controversy.

Minister of Agriculture, Chief Audu Ogbeh, had told newsmen that he stayed away from the transaction because of allegations that he removed N2 billion out of the N20billion payment disbursed to the dealers.

He however, maintained that the agro dealers could go to the presidency to pursue the remaining balance of N18billion.
An expert told The Guardian that because of failure of some agro dealers to pay up debt owed fertiliser manufacturers, supply of input might not be met until full payment is made.

The Federal Government had reiterated its determination to provide the farm inputs for farmers, as they could still engage in dry season farming if they are provided.

A source from the Federal Ministry of Agriculture, who pleaded anonymity, attributed the delay in fertilizer distribution to the inability of state governments to provide finance for the programme. He added that from the onset, states had said that they were financially incapable of supporting fertilizer distribution.

He said because of this, farmers had agreed to pay 75 percent of the required fund for the bags of fertilizer, while the Federal Government pay the remaining 25 percent, but since funds were yet to be released to the ministry, the programme could not go as scheduled.

Under the Growth Enhancement Scheme (GES) programme, the Federal Government provided 25 percent, the state government 25 percent, while the farmers paid 50 percent for each bag of fertilizer supplied.