Government plans to create 5m jobs in agri-business after taking out Brazilian $1.1bn farming loan

GOVERNMENT ministers expect as many as 5m new jobs to be created in the Nigerian agribusiness sector following the recent decision to take out a $1.1bn agricultural loan from Brazil that will be used to fund a radical expansion programme.

Nigeria is currently the world's sixth largest farm producer but the sector has numerous problems as up to one third of produce goes to waste due to poor storage and transportation facilities. Unit per head output is also low, most production is subsistence based by small holders and very little value-added processing takes place.

Vice president Professor Yemi Osinbajo, said that the government intends to turn this around under a Nigeria-Brazil bilateral project known as Green Imperative. This  partnership involves the provision of modern agricultural machinery and support services, including 10,000 tractors to be assembled locally in Nigeria and the establishment of over 707 training centres for Nigerians.

Speaking at the launch of the project, Professor Osinbajo said it was part of the government’s promise to invest in agriculture. He explained that the fascinating aspect of the deal was the emphasis on mechanised agriculture, which he said, would lead to higher yields.

Professor Osinbajo added:  “We cannot bring our nation out of poverty without investment in agriculture.  Also, the sheer number of young people coming of age will not only need to be fed but also employed and they want dignified jobs with decent pay.

“Today, we are producing as much Paddy Rice as much as we need because of mechanisation of agriculture. The only way to make the quantum leap required in our economy is what we are doing today with this project, the Green Imperative.”

According to the vice president, with mechanised agriculture, the youth would be attracted to farming because of the simplicity that comes with the modern farming system. He added that the new initiative would turn farming into a high tech and modern vocation.

Professor Osinbajo added: “One of the reasons young people don’t warm up to agriculture is because it is not mechanised but that will change with this project. We have made a significant difference in creating food sufficiency and decent jobs and we have ensured that this will be private sector driven.”

Agriculture minister Chief Audu Ogbeh, challenged Nigeria's youth to seize the opportunity offered by the project to create wealth. He added that with the current importation-based status quo, Nigeria also imported poverty and unemployment but this administration is set to reverse all that.

Finance minister Zainab Ahmed, added:  “The project we are launching today will be implemented with a total loan package of $1.1bn majorly from the Brazilian government, which will be disbursed in four tranches over a period of two years. It is pertinent to state here that greater percentage of the loan will be provided in kind through the supply of agricultural machinery and implements in the form of completely knocked down parts.

“This arrangement is expected to reduce fiduciary risks and create more employment opportunities for our teeming youth and those that will be involved in assembling the machinery and implements. Another important benefit of the project is that its implementation will be purely private-sector led in all its operations including the assembling of the machinery/ implements, operation of the service centres and the agro-processing centres."

Mrs Ahmed said the project will be implemented in all the 774 local government areas of the country in phases. Brazil's ambassador to Nigeria, Ricardo Guerra de Araujo, confirmed the $1.1bn loan, calling for urgent solutions to post-harvest losses in Nigeria, which he observed accounted for the loss of revenue in billions of naira yearly.

Ambassador Guerra de Araujo added:  “It has become imperative to make agriculture attractive to young farmers since this is the only way to develop human capital. The truth is that agriculture has the potential to create jobs for millions, support small scale farmers to actualise their potential.”