It is suicidal to plan agric policies on short term basis – Dangote
Alhaji Sani Dangote is the President, Nigeria Agribusiness Group and Vice President, Dangote Industries. In this interview, he speaks on how to move the nation’s agricultural sector forward as well as overcoming government policy somersaults in the sector among other issues. Excerpt:
Recently, you were quoted as saying that until the focus on agriculture is based on long-term planning, rather than price of crude oil, Nigeria cannot move the sector forward. Will you throw more light on that?
Well, what I mean is that agriculture is not a one-day business; it is a long-term business and for life. It is so important and crucial that it should not be seen as a temporary window just to get into it and then exit when things, in terms of earning foreign exchange, get better.
To expand on it, in agriculture, it’s just not primary production, there are so many other things within the value chain - you are talking about agro-processing, research and development, logistics, export content; you’re talking about other manufacturing facilities like textiles and garments, leather products, livestock, and it’s also about planning to feed the nation and also be able to export.
Nigeria forecasts that by 2020 it will have about 200 million people; probably as of now, we are already crossing over 190 million. So with 190 million people and with the ECOWAS countries bordering Nigeria depending on Nigeria’s capacity, we are talking about 400 million plus and Nigeria being the centre, there is no way we should look at agriculture just because of temporary low price of crude oil and then jump into it. This means by the time the price of crude oil comes back to what it was, everybody will abandon agriculture and go back to oil importation. We know if we do that we are committing a bigger suicide approach than what we did in the past because once people leave the farms and other agricultural activities, the opportunity will be lost again completely.
Since President Buhari came to power, he has raised awareness on the importance of agriculture and has been pushing the people towards self-reliance on agriculture and agricultural activities and I believe he will continue to do so. The fact that he believes in it and for the fact that most people have seen the benefits, we are gradually coming to know that agriculture is the only source of economic development that will sustain this country.
So, if we fail, as a nation, to sustain and improve on this present tempo and perhaps go back to importation, it means job losses will be heavy, opportunities that we have created now will be lost.
People that are engaged in some processing, into rice mills, wheat processing, sorghum, soya beans, poultry, livestock, tomato processing each of these values will be gone. For how long would we be relying on other nations to feed us while we keep ourselves in poverty?
So, that is why I say agriculture is even more important than insecurity issues; that agriculture should be treated as a matter of national security. If we can address the problem of hunger and poverty, through job creation, through food production, we will almost virtually address all other problems that have to do with security in the country. It will create hope and prosperity in the minds of the youth that there is light at the end of the tunnel when they graduate from school.
Also, agriculture is what can employ from an illiterate to a PhD holder; everyone has a role to play. So it is important that government realised that it is not a one short to agriculture, it is always a matter of looking at the total value chain; creating consistent research and development in the value chain and capacity building to be able to plan ahead.
So if we are just making a plan for the temporary, it is a suicidal approach and I believe the present ambition and most of us that are in alignment with it know it should not be about a temporary issue, but a primary issue.
We’ve been having policy inconsistencies on the agriculture sector. As a major stakeholder in this sector, what do you think could be done to address this?
I believe if there is a bill on agribusiness in the National Assembly and supported by the Executive and is passed into law, it would remedy these inconsistencies in government policies, most especially on agriculture.
Secondly, it is what this government has started already and it needs to continue with it, creating the opportunities for people to engage in agriculture. I think the mind set of Nigerians should be modelled to the fact that sustainable agricultural activities are the only solution to our poverty.
Once we have such a bill and for the fact that we are opportune now to have President Buhari who is focused on agriculture, it will eliminate the issue of inconsistency in the policy of agriculture.
So, I believe we, from the private sector, should also engage the National Assembly and the Presidency to see that a bill supported by these two arms of government scales through.
In the effort to develop the agriculture sector, what do you think the present administration is not doing right or should improve upon?
Well, I believe they are not carrying the private sector along at the policy formation level only for them to be invited at a later stage. I believe it should be from the beginning that the private sector should come in, more especially those who are active in the agricultural value chain.
Yes, I heard about their town hall meetings; I have been to one or two town hall meetings but town hall meeting is a different issue. To me, it is to hear what the rumour or what the thinking is in the country.
But here, sitting down with actual practicing farmers or those in agribusiness, processors and so on, is the most critical because together you will identify the real problems and then work together to formulate policy that would address the problems and guide against the inconsistencies in government policy.
So, I believe this government needs to focus more about meeting with organised associations in the agribusiness or any other business group in agriculture. I believe that engagement of this kind and working as partners is the only solution. But meeting on a different platform and then later you come with the approach and expect the private sector to take it, is wrong prescription.
So I believe what this government needs to do is to be more engaged with the private sector from day one and then conscientiously with the one particular missing block which is monitoring and evaluation of the activities of policy formulated. There should be an agreed feedback period with the private sector, not only the government sector.
What is actually happening at your tomato company in Kano?
You know, for all this time we’ve been working around making sure that the right policy is introduced in the tomato value chain. We thank God that recently President Buhari approved, through the Federal Executive Council, a ban on retail parts and some concentrates and also introduced high tariff on the concentrates.
It’s a very commendable thing as it will encourage increase in the production of tomato and development of the total value chain. It will enable Nigeria to become self-sufficient and hopefully within two to three years, we would even be exporting to other countries.
Unfortunately, they did this almost at the end of the season. We had hoped that they would do that in December, when farmers were going to plant but then another farming season will certainly set in.
Back to your question, right now we are having low scale of production at the company; we are not totally shut down. We started like 10 days ago, we are producing but not optimally because the price has gone so high of local raw material.
The good news now is that the Central Bank of Nigeria (CBN) has agreed to put tomato into its Anchor Borrowers’ Programme and we thank its governor immensely, because he took the initiative and said we would support tomato through the government’s policy. They gave farmers the funding to produce more tomatoes to meet the demand not only of our factories but also national demand.
So, with these two approaches - the policy being there, with the CBN’s support of the tomato value chain - I believe from the next planting season tomato will be even cheaper in the fresh market and also there would be local production of tomato paste.
We thank God that the government and the private sector have agreed on the right approach and Nigerians will feel the pact from the next planting season.