By Onome Amuge.
The agriculture sector is one of Nigeria’s major sources of investment with high income
yields for local and foreign entrepreneurs. This is underpinned by the fact that the most populous black nation is one of the most agriculture dependent economies in the world
contributing to food security and poverty reduction, employment generation, rural development and huge revenue generation.
Over the years, the agriculture sector has undergone various policies implemented by subsequent governments, but the almost-exclusive dependence on crude oil as a major source of export revenue in the last five decades has resulted in the attendant low investments in the agricultural sector.
According to industry experts, the urgent need to diversify the country’s economy, eradicate poverty and boost the nation’s revenue through commercial agriculture, require legal and institutional reforms contextualised within the socio-economic background of the country, to
attain optimum agricultural productivity and economic growth.
To this end, they emphasised that the challenges that have stifled the agricultural sector in
the last couple of decades can be best addressed by the current administration by putting in place efficient legal and institutional frameworks to promote sustainable commercial agriculture, ensure increased investment in the agricultural sector , while boosting revenue generation for the country.
Oluwole Smith, a professor of Private and Property Law at the University of Lagos-Nigeria,in a research article titled “Promoting Commercial Agriculture in Nigeria Through a Reform of the Legal and Institutional Frameworks”, identified weak legal and institutional frameworks in enhancing sustainable agriculture amongst factors responsible for the low level of productivity in the sector.
According to Smith,there are laws at the federal and state levels meant to foster sustainable agriculture and boost productivity. These laws, he stated, border on land use and management, agricultural sustainability, credit facility for farmers and environmental protection to enhance productivity.
He pointed out that the piecemeal approach to legislation in the agricultural sector with laws that are mostly un-co-ordinated and sometimes duplicating responsibilities for agencies,often lead to inefficiency within the agricultural system.
Smith further noted that non-harmonisation of the various laws creates challenges with regards to implementation, resulting in ineffective laws.
“Whereas the main objective of these laws and policies is to encourage the private sector
participation in the agricultural sector, government agencies still dominate all aspects of agricultural productivity making it difficult for private sector participation to thrive,” he said.
Other factors he identified for the failure of laws and policies of the government to stimulate agricultural productivity include inadequate policy co-ordination, poor implementation of policies,lack of transparency during the planning and implementation of the policies, as well as corruption and inefficient judicial system.
Smith noted that the eclipse of Nigeria’s dominance in commercial agriculture by China, the
United States of America, Argentina, Indonesia, Malaysia, Cote d’voire, Ghana,
Mali and Burkina Faso,has been as a result of the country’s inefficient legal and institutional regimes.
He therefore called for an urgent need to harmonise the various sectoral and allied laws on agriculture for effective implementation and enforcement.
“States have major role to play in this regard, and involvement of the farmers’ unions and co-
operatives as well as private sector participation, need to be factored into law making,” he stated.
According to Smith, land tenure reform is key to the actualisation of government policies on
agriculture and, therefore, deserves the most urgent attention by the law makers.
He noted that amendment of the various provisions of the Land Use Act are desirable, adding that putting in place regulations at the state level towards effective implementation of the reforms would go a long way in actualising the main objectives of the Act and in assuring access and security of tenure necessary for sustainable agriculture. He also noted that taking bold steps towards land titling would enhance the status of agricultural land as a viable security for bank lending.
The professor of Private and Property Law further advised that policies and guidelines by the Central Bank of Nigeria (CBN) should be tailored towards agriculture friendly credit and guarantee schemes, enabling banks to increase lending to farmers at low interest rates, while apex bank offers and implements an efficient credit guarantee in favour of farmers.
“Putting in place legal and institutional frameworks for sustainability of
commercial aquaculture and optimising the benefits accruing from it, is long
overdue. As the country ranks favourably high in the percentage of productivity
in this sector within the African continent, a quick response to international
demands will be a great advantage,” he stated.
Speaking in the same vein, Tolulope Aina, founder of Agrolearn, an e-learning innovative capacity-building and job creation platform in the agriculture sector, said the increased interest in the agricultural landscape must be matched with a reciprocal increase in sustainable regulatory frameworks for the sector.
According to Aina, policy support and climate resilience would pave the way for a thriving and inclusive agricultural sector aligned with the president’s vision in improving food security.
The agriculture expert urged the government to implement policies and regulatory frameworks that support agricultural growth, value addition and market access.
She stressed the need for the establishment of robust market linkages for farmers and agribusinesses by setting up agricultural marketing boards and improving market information systems to connect producers with buyers, processors and exporters.
Aina also emphasised the need to prioritise climate change adaptation and mitigation strategies in agriculture to help farmers mitigate the impacts of climate change.
She advised the government to create awareness and promote climate-smart farming practices and water management techniques to enhance resilience in farming operations.
Aina also opined that the time has come to harmonise the existing laws in the sector into one formidable body of laws for the purpose of establishing a legislation which is not only functional but recognized by all actors within the sub-sector with a view to making agriculture even more attractive and profitable and thus enhance the economic growth of the country.
