The announcement by the Minister of Agriculture Dr Audu Ogbeh of the recapitalization and general restructuring of Bank of Agriculture is a most welcome development that would boost the economy through the empowerment of farmers and creation of millions of additional jobs.
The Minister had announced that the Federal Government had decided to divest 40 per cent of its shares in the bank for farmers to buy and that new private sector investors would now be encouraged to take equity participation in the bank.
According to the Minister, this recapitalization and restructuring would fetch the bank 250 billion naira additional fund. The Minister also announced a quantum saving of 21 Billion Dollars on food import, while agricultural export has increased by 500 per cent in the last three years.
The Buhari Media Organisation (BMO) in a statement signed by its Chairman, Niyi Akinsiju and Secretary, Cassidy Madueke, noted that farmers’ ownership of 40 per cent of the bank will ensure, among other things, that the bank would be user-friendly and that another class of wealthy farmers will soon emerge.
BMO also noted that this restructuring of the Bank of Agriculture is another step in the diversification policy of President Muhammadu Buhari “which has helped tremendously to jumpstart the country’s economy.
“The decision to recapitalize the Bank of Agriculture will usher in a new type of Farmer’s Bank like the Farmers Bank of China and Rabbo Bank in the Netherlands.”
The Pro-Buhari group noted that if the Bank of Agriculture had been functional in the delivery of its core mandate, there would’ve been no need for the Central Bank of Nigeria to intervene through the Anchor Borrowers Programme: “but through the efforts and policies of President Buhari’s administration, Bank of Agriculture can now be truly regarded as farmers’ bank.
“The outcome of the recapitalization of the Bank of Agriculture will be an increase in productive output as the bank will have the capacity to give out loans at single digit interest rate to farmers who need to expand production.”
BMO advised Nigerians to take advantage of the silent revolution going on in Agriculture and partake in any of the value chains in the sector. “For example, through the diversification policy of backward integration, locally produced raw materials are now used in the agro-based and manufacturing sectors where companies like Unilever use locally sourced palm oil to produce their soaps, thereby saving Nigeria the much needed foreign exchange with a multiplier effect on the economy, that strengthens the naira.
“According to Dr Ogbeh, Nigeria has saved twenty one billion dollars ($21 bn) on food import in three and a half years while agricultural export has increased by over 500% and this implies that we have been able to contain the exit of twenty one billion dollars from our economy, saving Nigeria the much needed foreign exchange.
“On the other hand the restrictive ban (CBN’s 41-items-ban) was able to contain the flight of jobs as it provided an opportunity for Nigerians to produce those banned items. One of the best outcomes is the success in the local production of rice which saw a dramatic drop in the importation of rice by over 90%.”
BMO also recalled the salutary effects of the diversification policy on the maritime sector. “In the past, vessels coming into Nigeria usually went back without loading any goods from Nigeria, thereby adding to the cost of freight and increasing the prices of such goods in the Nigerian market. It is glad to note that the situation is rapidly changing as there is a guarantee of goods waiting to be loaded and exported by the departing vessels.”
The pro-Buhari group maintained there is a new paradigm shift in the organization of productive forces in the country and called on all Nigerians irrespective of political affiliation to support and partake in the value chain of President Buhari’s diversification policies.