Ibekimi Oriamaja Reports
Mr. Adeniyi Adebayo, Minister of Industry, Trade, and Investment, inaugurated an Inter-Ministerial Standing Committee yesterday to oversee the implementation of a memo on the “Promotion of Agri-Business in Nigeria through Right Farm Gate Pricing and Ban on Foreigners Purchasing Agricultural Commodities at Farm Gates.”
The memo was previously approved by the Federal Executive Council (FEC) following its presentation on March 9 by the Ministries of Industry, Trade, and Investment and Agriculture and Rural Development.
Adebayo explained that the move was part of the government’s efforts to create a favorable environment for the commodity sub-sector.
According to the minister, the memo specifically seeks to address challenges impeding the development of the agricultural commodity subsector of the economy, curtail unfair trade practices and foreigner exploitation of Nigerian farmers, and promote competitive premium pricing as an impetus for increased productivity in the commodity subsector, among other things.
According to Track News, the practice of middlemen who typically mop up farm produce at source has often contributed to rising food inflation – as agricultural products are hoarded to create artificial scarcity, which then leads to higher food prices.
Furthermore, farmers are frequently taken advantage of by middlemen who entice them with quick cash at the point of harvest.
These practices have also been linked to some of the reasons why food prices rarely fall, even after supposedly bountiful harvests.
However, if properly implemented, the latest intervention could reduce food prices.
However, the minister condemned the exploitation of farmers by foreigners who come to Nigeria to mop up agricultural commodities at farm gates and then offer farmers prices below market value.
“This situation has indeed led to the failure of many contractual agreements between farmers and indigenous off-takers,” Adebayo said. It has also had an impact on the production capacity of our domestic factories because foreigners buy off supplies and deprive the factories of necessary stocks.
“The current practice of direct purchases of agricultural commodities at unfair prices by foreigners at our farm-gates poses serious risks, including reduced farmer income, declining agricultural productivity, unemployment, and insecurity.”
“A number of activities for implementation have been outlined, and the committee is expected to ensure that they are properly articulated and implemented for the growth and development of our economy,” he added.
The committee would also facilitate the establishment of enforcement organs in states and local governments, as well as Mr. President’s signing of an Executive Order specifying penalties and fines for violators.
It will also work with state governments to establish commodity aggregation centers for export in strategic locations across the country, as well as conduct quarterly assessments of implementation.
Mr. Suleman Audu, Chairman of the Committee, expressed the body’s readiness and willingness to provide the necessary leadership and coordination to ensure the efficient implementation of its mandate.
