Nigeria Gets N139 Bn from World Bank to Boost Agriculture – Minister

Nigeria has received ₦139.5 billion from the World Bank in the last two years to boost agricultural development, Agriculture Minister, Akinwumi Adesina, said at the concluded All Nigerian Editors’ Conference in Asaba. He said, “Nearly N62 billion of the amount was specifically pumped into irrigation development. The African Development Bank (ADB) had provided nearly ₦77.5 billion to support the development of infrastructure around the staple crop processing zones in Nigeria.” “The International Fund for Agriculture Development had also provided additional N31 billion to support staple crop processing around the country.” “The French Agency for Development for the construction of rural roads had provided another $200 million (about ₦31.2bn) to complement government’s market development efforts. “Since the advent of the reform programme in the agriculture sector, changes were recorded in commercial banks’ lending to farmers. In 2012, banks lent ₦3.5 billion to the agricultural sector, mainly for fertiliser and seed companies under the Growth Enhancement Scheme (GES).” “While this was lower than expected, the perceived high risk of lending by banks to the sector was proved to be exaggerated by the results obtained.Of the total lending, default rate experienced was zero per cent.As a result of this success, banks ramped up massive agricultural lending increase to ₦25 billion. “Banks are now lending more because of our success in fixing the agricultural value chains, reducing risks and lowering cost of doing business for banks,” he added. According to the News Agency of Nigeria, he also said that President Jonathan, in September, will launch the “Nagropreneur” programme for the youth. To create “a new generation of 750,000 young commercial farmers, who would become the ‘young elite’commercial farmers who will make Nigeria competitive in the global agricultural market.” He further said that, “the impact of agricultural transformation agenda had been significant, with additional nine million tonnes of food produced in 2012 and 2013, representing 80 per cent increase from the annual target of five million tonnes.” “Food imports declined by ₦857 billion by the end of 2012, showing a 144 per cent achievement above the target of ₦350 billion. Import bill on wheat, sugar, and rice declined by ₦465 billion in 2012.”