Enugu’s example of diversifying the economy

It is public knowledge that agriculture was the mainstay of the country’s economy before the discovery of oil in Nigeria. Since the discovery of oil, Nigerians and successive governments played down agricultural activities to the detriment of the nation’s economy.

It is shameful that a country like Malaysia that took palm-nuts from Nigeria so many years ago is today the world’s major producer of palm oil. For several years of oil boom in Nigeria, Nigerians over-depended on imported food items to survive, while not exporting enough. Also government’s policies on imported food items were neither here nor there, considering that it was never protective and supportive of local food production.

Successive governments at all levels had consistently paid lip service to diversification of the country’s economy before now.  They usually rush to Abuja on monthly basis to collect handouts called monthly federation allocation. This was the practice in government’s circle and corridors of power since the discovery of oil in the Niger-Delta region until recently when the global price of crude oil suddenly crashed.

With the unprecedented crash and the renewed militancy in the Niger-Delta region, the country’s economy is in dire straits. The only way to revive and sustain the economy is through diversification into agriculture and other sectors. If there is any appropriate time for our leaders to put on their thinking caps, it is now.

So far, only a few states are taking concrete steps to diversify their states’ economy in line with the Federal Government’s economic diversification agenda. Enugu State is one, not just through policy statement, but by implementing policies and actions that will sustain the agenda. Its first step to demonstrate a commitment in that direction was during its International Investment Summit which held 12-14 April, 2016.

At the Summit, agricultural processing was one of the major indentified 10 key sectors the State governor, Mr. Ifeanyi Ugwuanyi presented to the investors.

The agric-business players and investors at the Summit were presented with the ample opportunity to explore options at developing the agric sector in the state through Public Private Partnerships, as well as privatisation and commercialisation of government agriculture enterprises.  The summit and its major theme was indicative of the importance the state government attaches to revival and development of agriculture in the state. The plenary, held under the theme; Agribusiness as a Viable Business Platform, had in attendance international investors, agribusiness players, exporters and agric players from within and outside the shores of Nigeria. Speakers commended the government’s effort, embraced the agricultural potentials of the state and expressed readiness to partner with the government in developing the sector.

The state governor made it clear that his government was seeking to commercialise agriculture in the state as part of its development plan for the sector.  It was discovered that major crops that are viable in the state which offered potentials for investment and commercialisation include; palm oil, rice, cassava, cashew, vegetable fruits, and livestock production.

Subsequent to the summit, the governor has apportioned 750 hectares of arable land across the state for commercial agriculture. The communities that benefitted include Ogbeke – 50 hectares, Oduma–50 hectares, Ogulogu – 100 hectares, Akpugo-Eze – 50, Owo – 50 hectares and Nnewe –100 hectares.

Others are Ikem – 50 hectares, Agkuibeje – 50 hectares, Oghu–50 hectares, Eha Amufu –100 hectares, Obimo – 50 hectares and Amangunze –50 hectares.

Contractors have commenced work diligently to clear the lands, after which the land would be segmented into three-hectare plots for allocation to youths and women to undertake commercial agriculture in the state.

In addition, the government has packaged soft loan for the would-be-beneficiaries of the programme, and purchased 20 tractors with complete sets of implements for each of the tractors at the total cost of N175.3 million.

The tractors are to be given to young agricultural/engineering graduates to render tractor-hiring services to farmers, especially those farmers at the arable planting areas where commercial agriculture is being practiced, on a cost recovery basis for sustainability. The beneficiaries will be required to pay back the subsidised cost of the tractors and its implements over a period of six years.

To ensure that the farm produce from these earmarked farms could be easily transported to the urban areas for sale, the state government constructed some major roads leading to these farms and other rural areas. This can be seen in the ongoing dualisation of Opi/Nsukka road, Achalla road, Orba road and other roads in Enugu North zone.  It is of note that the zone, which is made up of 80 per cent agrarian communities has the agricultural and human potentials of feeding the Southeast zone and beyond if given the necessary support.

But unfortunately, these potentials have not been harnessed by successive governments in the state and national levels due to poor agricultural policies, high revenue from crude oil, resulting in neglect of the zone for too long. With the crash in crude oil price and governments’ anxiety to diversify the economy by reviving the agriculture, Enugu State government may have taken the lead by its concrete plan and efforts so far.

The state governor’s focus and pragmatic policies in that direction has not deterred or prevented government from attending to other state obligations like road construction, payment of workers’ salaries among others. Obviously, the Ugwuanyi administration understands the potentials of huge investment in the agricultural sector.   With that foundation, it should not be surprising if, in the years ahead, the state competes favourably with states like Benue, Nassarawa and Taraba in food production.

Instead of relying solely on the month federation allocation to run the state as has always been the case, governors should take a cue from what their Enugu counterpart has done so far in the area of agriculture. Every state in the country is blessed with vast arable lands that have been left unused and unattended because of the availability of the crude oil proceeds. The advantage of what Enugu government is doing in the agric sector is that even if crude oil price rebounds in future, the state will have enough funds to develop other sectors of the economy.
Ugwuoda, a development expert wrote from Agani, Enugu State